Date: 07/09/2022

Relevance: GS-2: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

Key Phrases: Public Funding in Education, National Education Policy (NEP), Privatization of Education, Consequences of Privatization of Education

Context:

• Recently, the Union Minister of Education told the Lok Sabha that people should let go of the idea that universities must be funded only by the government thus underscoring the Government's stand over private funding in the Education Sector.

Background

• It also emphasizes on the General Financial Rules of 2017, which encourage all autonomous bodies to maximize generation of internal resources and attain self-sufficiency.
• The remarks by the Education Minister are in contradiction with that of the Union Home minister who stressed on the need for a public education system in a vibrant democratic society while inaugurating some education and skill development-related initiatives.

The National Education Policy’s (NEP’s) vision

• The NEP 2020 envisages to promote increased access, equity, and inclusion through a range of measures, including greater opportunities for outstanding public education.
• It also provides an assurance that the autonomy of public institutions would be backed by adequate public funding.
• The NEP underlines that the previous targets of public expenditure on education of about 6% of GDP envisaged by the 1968 policy, reiterated in the 1986 policy and reaffirmed in the 1992 review of the policy were not achieved.
• It also endorsed a substantial increase in public investment by the Central and State governments to reach 6% of GDP at the earliest which is
  • Extremely critical for achieving the high-quality and equitable public education system that is truly needed for India’s future economic, social, cultural, intellectual progress and growth.

Public Expenditure in Education: Data and Statistics

• The National Education Commission, also known as the Kothari Commission, precursor to First Education Policy, had suggested 2% of GDP expenditure on Education.
  • But the expenditure on higher education by the Centre and the States taken together decreased from 0.86% of GDP in 2010-11 to a measly 0.52% in 2019-20 (Budget Estimates).
  • The Centre's expenditure on higher education dropped from 0.33% of GDP in 2010-11 to a mere 0.16% in 2019-20 (BE).
• Despite an increase of almost 3 times in Government’s Revenue and Total receipts in the last decade the decline in public expenditure on education is a cause of concern.
  • Total receipts increased from ₹13.07 lakh crores in 2011-12 to ₹39.44 lakh crore in 2022-23 (BE).
  • Union government’s expenditure on higher education as a percentage of revenue receipt saw a decline from 2.60% in 2011-12 to 1.85% in 2022-23 (BE).
  • As a percentage of the total receipt, the allocation for higher education fell from 1.49% to 1.04% during the last decade.

Consequence of privatization

• Higher education in India is already highly privatized and most of the private higher education institutions are run on a self-financed basis and they aim to recover costs and profits.
• Taking a cue from the private sector, the public sector has also been rooting for practices such as
  • The thrust for resource mobilization and internal revenue generation
  • Cross-subsidization, resource use efficiency and cost reduction.
  • Accelerated cost recovery and enhanced user charges.
• This trend will lead to a substantial increase in fees and other charges from students and this would lead to skewed educational status in the society because the poor won’t be able to afford such high costs.
• Also the financing through Savings and Bank Borrowings can only help the elites and poor won’t be deprived of the opportunities.

Way Forward

• The NEP 2020 envisages enrolment in higher education to be nearly double by 2035
  • But the fact that the social and economic elites, the rich and the affluent, have already crossed a gross enrolment ratio of 100%.
  • Therefore the future growth in higher education has to come from the socio-economically disadvantaged groups which is only possible when the poor get subsidized or free Higher Education.
• Despite a high poverty rate; under the NFSA about 62.5% of our population have to be provided free ration to save them from destitution.
• Therefore such a majority who cannot afford food will be deprived of accessing higher education if the education is privatized.

Conclusion

• Higher education in India may have not performed with the best of results but still it has served the nation rather well.
• It has played a critical role in sustaining the $2.8 trillion economy that India has become today but for enhanced investment in higher education, our vision of a $5 trillion economy and the aspiration of becoming a high-income developed country will be impacted if education is privatized.
• Thus the need of the hour is that the Governments should push for an enhanced Public expenditure in the education sector specially the Higher Education and coupled with implementation of NEP in its true vision, the new structure can bring India at par with the leading countries of the world.

Source: The Hindu

Mains Question:

Q. “Equity is compromised due to the privatization of education” In light of the statement, analyze the enhanced practices of privatization of education in India by the government and its impact on the Human resources, GDP and overall growth of the nation. (250 words).