Public Investment in Education

                               PUBLIC INVESTMENT IN EDUCTION
INTRODUCTION
“ EDUCATION IS THE MANIFESTATION OF DIVINE PERFECTION, ALREADY    EXISTING IN MAN.”                                 
                                                                                            - SWAMI VIVEKANANDA
Good public education is a fundamental right in India, and there is a strong correlation between public investment in education, child development and empowerment. Public investment in education is a long – term investment . It ultimately improves the economic growth of the country.
INVESTMENT
Investment is putting money into something with the expectation that will generate income or the value will appreciate in future or profit.
PUBLIC INVESTMENT
Public investment refers to the investment by the state in a particular asset.
FACTORS INFLUENCING EDUCATIONAL INVESTMENT
National income
Educational expenditure
Manpower development
National expenditure
Educational finance
Educational revenue

National  Income
National income is the money value of all the final goods and services produced in a country during a year.
Improved final goods and services can be produced only with the improvement in the education of a country.
EDUCATIONAL EXPENDITURE
A nation’s income spend for educational facilities of its citizens is known as educational expenditure.
Expenditure on education is an investment on human capital.

MANPOWER DEVELOPMENT
 The development of productive skills and abilities of a nation’s citizens is known as manpower development.
NATIONAL EXPENDITURE
National expenditure means expenditure on the national products  i.e., expenditure on final goods and services produced during the year.
EDUCATIONAL FINANCE
The educational money affairs of the nation is known as educational finance.
EDUCATIONAL REVENUE
The profits of education in terms of intellectual and physical services is known as educational revenue.

THE INDIAN EDUCATION SYSTEM
The education system in India comprises of three key groups :- primary education, secondary education and higher education .
PRIMARY EDUCATION
Primary education comprises of two stages 1) lower primary stage of 4 years ,  covering the age group 6 to 10, and 2) upper primary stage of 3 years, covering the age 10to 13. UNESCO would like to designate this entire period as “Basic Education.”
SECONDARY EDUCATION
Secondary stage consists of standard VIII, IX and X. It  is the terminal stage of education for majority of  pupils.
 HIGHER EDUCATION
By higher education , we normally mean university education of the academic streams, leading to general degrees. Higher education includes professional courses such as education, engineering, medical, agricultural etc.




                                  EDUCATION SECTOR IN INDIA
Do you know how much the government spends on education? This expenditure by the government is expressed in two ways;
1 ) as a percentage of total government expenditure
2) as a percentage of gross domestic product (GDP)
 The percentage of education expenditure of total government expenditure indicates the importance of education in the scheme of things before the government.
The percentage of education expenditure of GDP expressed how much of our  income is being committed to the development of education in the country.
                    GOVERNMENT EXPENDITURE ON EDUCATION
EXPENDITURE ON PRIMARY EDUCATION
Expenditure on primary education is expressed as a percentage of total general government expenditure on education. General government usually refers to central, state and local governments.
Year
%  of government expenditure

1952
30.05

2000
35.59

2010
36.38

2019
37.56

                                                             ( Source: Government of India budget documents)



EXPENDITURE ON SECONDARY EDUCATION
Expenditure on secondary education is expressed as a percentage of total general government expenditure on education. General government usually refers to central, state and  local governments.
Year
%  of government expenditure

1952
27.21

2000
28.40

2010
34.09

2019
37.56

                                                               ( Source: Government of India budget documents)
         


EXPENDITURE ON HIGHER EDUCATION
Expenditure on higher education is expressed as a percentage of total general government expenditure on education. General government usually refers to central, state and  local governments.
Year
%  of government expenditure

1952
7.92

2000
13.17

2010
20.28

2019
28.53

                                                               ( Source: Government of India budget documents)


GOVERNMENT EXPENDITURE ONEDUCATION, TOTAL % OF GOVERNMENT EXPENDITURE
General government expenditure on education is expressed as a percentage of total general government expenditure on all sectors.
Year
Total %  of government expenditure

1952
8.16

2000
11.69

2010
14.16

2019
16.96

                                                             ( Source: Government of India budget documents)



GOVERNMENT EXPENDITURE ON EDUCATION, TOTAL % OF GDP
General government expenditure on education is expressed as a percentage of GDP on all sectors.
Year
 %  of GDP

1952
0.64

2000
3.14

2010
3.87

2019
4.42

                                                               ( Source: Government of India budget documents)




                                                  MAJOR FINDINGS
Primary education takes a major share of total education expenditure and the share of the higher education is the least.
Our government spends more on primary education sector. Because large number of students are admitted to this sector.
On an average, the government spends less on higher education, expenditure per student in higher education is higher than that of primary.
In addition to this the government sanction a large outlay for the promotion of higher education and new loan schemes for the students to pursue higher education.
Recently, the expenditure on all level of education in India was increased as compared into over the past years.

 RETURNS 
Yield, profit or revenue as from investment is known as returns
PRIVATE AND SOCIAL RETURNS
PRIVATE RETURNS

SOCIAL RETURNS

Academic achievements

Service to society

Characteristic development

Development of culture

Social status

National integration

Skill development

Productive citizens

Employment

Creative works


RATE OF RETURN ANALYSIS
RETURN = TOTAL EXPENDITURE – REVENUE

EDUCATIONAL BENEFITS
DIRECT AND INDIRECT BENEFITS
PRIVATE AND SOCIAL BENEFITS
MONITORY AND NON – MONITORY BENEFITS

DIRECT AND INDIRECT BENEFITS
DIRECT BENEFITS

INDIRECT BENEFITS

Increase literacy

Increasing productiveness of citizens

Development of knowledge

Preservation and transmission of culture

Increase national income

Moral and value based living

Economic development

Earning




PRIVATE AND SOCIAL BENEFITS

PRIVATE BENEFITS                                                   
SOCIAL BENEFITS


Earning 
valuable services

Provide social status                           
Integration of society

Knowledge 
Economic development

Values


Character development


                                                                                                   
MONITORY AND NON- MONITORY BENEFITS

MONITORY BENEFITS
NON-MONITORY BENEFITS

Academic achievements
 Intellectual productiveness


Socio- economic status of individual     
Transmission of culture


Occupation 
National integration


        CONCLUSION
Education is definitely important in one’s life. A gift of knowledge can bring us to the top of our dreams. Education makes people capable of doing new interesting things that can go a long way to improving human living conditions and standard. Investments in education convert human beings into human capital. Investment in human capital formation is considered as efficient and growth enhancing. Investment in education stimulates economic growth of the country. Our education is really worth investment.
References

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