Chapter 5 IED Human Capital Formation In India

Economics Class 12
Indian Economic Development

## How is Govt expenditure on Education Sector measured?

It is measured in 2 ways:

1 Percentage of Total Governement expenditure

2 Percentage of GDP

Percentage of Total Government expenditure

It is calculated by following formula

Total Education Expenditiure/ Total Govt Expenditure * 100

This denotes importance of education in scheme of things before the government

Percentage of Total Government expenditure

Is Govt spending as a percentage of GDP adequate?

No

It should be at least 6% of Govt Budget

as per

Recommendation of Education Commission (1964-66)

However, even after 55 years it is only around 4%

### MCQ Other Books

#### Question 1

In the following questions, select the correct answers:

The expenditure of the government on education is expressed as:

1. Percentage of total government expenditure
2. Percentage of GDP
3. Percentage of National Income
4. Neither A nor B

#### Question 2

Identify the correctly matched pair from column A to that of Column B:

 Column A Column B 1. Sarva Siksha Abhiyan (a) Rural Education 2. National Council  of Educational Research and Training (b) Adult Education 3. Indira Gandhi  National Open  University (c) Higher Education 4. Kendra Vidhyalaya (d) Elementary  Education

1. 1 – (a)
2. 2 – (b)
3. 3 – (c)
4. 4 – (d)

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### Transcript

How to Measure Education Expenditure As a percentage of Total Expenditure It measures how much of total expenditure Govt spends on education Formula Total Education Exp * 100 Total Govt Exp (Hence now more money spent by govt on education) This denotes Importance of Education in scheme of things of Government As a percentage of GDP It measures how much of GDP People spend on education Formula Total Education Exp * 100 Total GDP (Hence now more money spent by people on education) This Denotes how much percentage of people's income is committed to development of education in India