Education is a very important factor in the economic development of any country. India since the early days of independence has always focused on improving the literacy rate in our country. Even today the government runs many programs to promote Primary and Higher Education in India.

Education in India

Education in India means the process of teaching, learning, and training of human capital in schools and colleges. This improves and increases knowledge and results in skill development hence enhancing the quality of the human capital. Our government has always valued the importance of education in India and this is reflected in our economic policies.

Growth in Government Expenditure on Education

There are two areas where government expresses there expenditure.

  • As a percentage of total government expenditure.
  • As a percentage of Gross Domestic Product (GDP).

The percentage of expenditure on education out of total government expenditure is the indicator of the importance of education in the scheme of expenses before the government. The commitment level towards the development of education in our country can be shown by the percentage of expenditure done on education out of total GDP.

During 1952-2010, the percentage of total education expenditure out of total government expenditure increased from 7.92% to 11.10%. At the same time, the percentage of GDP of the country increased from 0.64% to 3.25%. As the expenditure on education was not constant during that time, the growth of country was irregular in that era.

Expenditure on Elementary Education in India

In comparison to expenditure done on elementary education and higher education, the major share was grabbed by elementary education. On the contrary, expenditure per student on higher education was higher than that of elementary education.

As the expansion of school education is going on, we need more trained teachers who have studied at educational institutes. Therefore, expenditure on all levels of education should increase. Himachal Pradesh spends Rs. 2005 as per capita education expenditure as compared to Bihar which spends Rs. 515. This results in differences of educational opportunities between states.