Draft report of

Scheme wise Plan allocation and expenditure during X plan

Total__2002-03'>Name of the Scheme	X plan 2002-07 allocation	% to Total	2002-03	2003-04	2004-05	2005-06 (R)	2006-07 (B)	Total	Diff.
National Programme for Women	254.50	6	0.00	0.00	0.01	-	-	0.01	-254.49
AIU	2.00	0	0.25	0.40	0.50	-	-	1.15	-0.85
Institution of Higher Learning	5.00	0	0.83	0.70	0.33	-	-	1.86	-3.14
Zakir Hussain Memorial College Trust	2.00	0	0.00	0.00	0.40	-	-	0.4	-1.6
UGC	3294.00	79	559.76	516.75	694.75	709.72	1139.47	3620.45	+326.45
IGNOU	430.00	10	31.99	16.56	67.00	54.00	90.00	259.55	-170.45
Institutions of Research	189.00	5	26.31	26	26.96	25.08	31.38	135.73	-53.27
Total	4176.50	100	619.14	560.44	789.95	788.8	1260.85	4019.18	-157.32

Source: Annual Financial Statistics of Education Sector 2003-04, MHRD, Govt. of India, New Delhi, 2005 and Expenditure Budget 2006-07, Volume – 2, Government of India, February, 2006.
4.6 Declining Public Expenditure in Higher Education

• 
  Plan and non-plan budgetary support to university and other higher education on revenue account of the center and the states taken together during 2002-05 (1^st three years of X plan period) is shown below to calculate the total public expenditure per student. The trend during the period shows that in nominal terms the total public expenditure per student in university and other higher education on revenue account is continuously falling and it is little over Rs. 10,000. In real terms it shows a consistent decline during 1990’s and in the first half of the present decade. In fact index of real public expenditure in higher education has fallen to 79 points in 2003-04 as compared to 1993-94 as the base year.
  

TABLE-5

Total Public Expenditure per Student in Higher Education

2002-05

Year	Total Public Expenditure (Rs cr.) (Revenue Account)	Enrolment (Excluding Tech, Medical, Agricultural& Veterinary)	Public Expenditure per Student (Rs.)
2002-03	8859	8164945	10850
2003-04 (R)	9380	8849807	10599
2004-05(B)	9562	9318695	10261
2005-06 (R)
2006-07(B)

Source: UGC Annual Report 2002-03, 03–04, 04-05, University Grants Commission, New Delhi and Analysis of Budget Expenditure on Education, Ministry of Human Resource Development, Govt. of India of different years.

• 
  Some more facts can be established by breaking the component of per capita public expenditure. It may be noted that on an average, during 2002-05, the central plan and non plan expenditure per student amounts to only 6% and 12% respectively, whereas the state plan and non plan expenditure per student amounts to around 5% and 76% respectively. Thus total plan expenditure of centre and states constitutes only 11%. The bulk expenditure is on account of non-plan expenditure. It is also important to note that there has been a consistent decline in the planned resources per student for higher education.
  

TABLE-6

Distribution of Total Public Expenditure per Student in Higher Education

	Public Expenditure per Student
	2002-03	2003-04 (R)	2004-05 (B)
Central Plan	758	639	686
Central Non-plan	1386	1336	1240
State Plan	527	558	529
State Non-plan	8176	8063	7803
Total	10847	10596	10258

An important point to observe is that States are severely constrained to add to the existing capacity to improve access and quality in terms of planned investment. Similarly, the states are facing resource constraints, and as a result, even non-plan commitment is difficult to fulfill. Its impact in terms of rising vacancy of teachers and poor maintenance of infrastructure, laboratory, library, equipment etc. are quite visible. It is in this context that the central plan, even though it constitutes small proportion to public expenditure in the X plan, has a developmental role. A significantly high proportion of central plan contribution to the public expenditure per student for university and other higher education and Technical education is the most crucial aspect of the policy and planning. It acquires importance in terms of higher XI plan allocation for university and other higher education and technical education.

CHAPTER – 5

Financial Requirements for Higher Education in the Eleventh Plan,

Based on Macro Targets and Estimates

5.1 Introduction

5.1.1 The higher education sector has witnessed a brisk rate of increase in the last few years. Available estimates show that the targeted enrolment rate (10 percent) for the Tenth Plan is likely to be exceeded by 2006-07.

5.1.2 The CABE Committee on Financing of Higher Education has concluded on the basis of international experience that an enrolment rate of 20 percent or more is consistent with a turnaround in economic performance. A number of alternative estimates also show that the higher education sector in the country would need to expand at a rapid rate in order to meet the needs of an economy, which is poised to grow at a rate of nine percent or more. This has also been stressed by the Approach Paper in the Eleventh Plan.

5.1.3 However, the higher education sector currently faces major challenges of quality and excellence, and of improving access with inclusiveness. The quality of education in the sector is uneven with large segments, both in the government-financed and private unaided sector, showing very poor standards. In the public-funded sector, these problems are largely related to the number and quality of teachers and availability of infrastructure. Secondly, the sector is ill equipped to face the challenge of inclusion due to a number of reasons. There are large disparities in enrolment rates across states, urban and rural areas, sex, caste and poor-non-poor. Apart from changes in the policy framework, this itself demands higher investment in the field of higher education in backward and rural areas, along with promotion of schemes that can help inclusion and simultaneously expand enrolment.

5.1.4 Both the public as well as the private sector will have to take requisite steps to meet the above challenges. The CABE Committee on Financing of Higher Education has shown that the relative share of public expenditure on higher education has declined sharply over the Plan periods. It has also shown that in the recent years, there has also been a decline in per student real expenditure on higher education. The Common Minimum Programme of the government has laid down the goal of six percent of GDP for the education sector as a whole by the end of the 11^th Plan. The Committee on Reaching National Common Minimum Programme’s Commitment of Six Per Cent of GDP to Education, under the Chairmanship of Prof. Tapas Majumdar, has outlined various scenario under which this goal could be reached, and has set a target of 1 percent of GDP for higher education. Compared to this, the current expenditure is only about 0.4 percent. The Approach Paper to the Eleventh Plan has proposed raising this expenditure by about 0.25 percent or to about 0.65 percent but this suggested increase is not based on rigorous quantitative targets and estimates.