Chapter-4 Higher Education in Plan Prioritiesshodhganga.inflibnet.ac.in/bitstream/10603/40551/11/13... · 2018. 7. 2. · The National Policy on Education (NPE) 1986 was formulated

Chapter-4

Higher Education in Plan Priorities

HIGHER EDUCATION IN PLAN PRIORITIES

In India, after Independence, the Five Year Plans ushered in an era of systematic

economic and social development of the country. Social services were assigned

remarkable priority and efforts were made for all round development of higher

education in Plan priorities. There were just 19 universities and 500 colleges at the

time of Independence. With the declared objective of giving equality of opportunity,

the government was faced with the assignment of meeting the requirements of

increasing numbers, many of whom were first generation learners, who viewed higher

education as the only means of getting vertical and social mobility. Hence an

unprecedented expansion took place in higher education, with the number of

universities increasing from 19 at the time of Independence to 378 and the number of

colleges from 500 to 18,064 by the end of Tenth Plan. Suggestions were made to

restrict admissions in almost all Five Year Plans. The University Education

Commission 1949, as well as the Education Commission 1964, also made strong

recommendation in this regard. However, no combined efforts were made to contain

the growing numbers in higher education. Lack of job oriented courses at lower

levels, especially after high school and higher secondary, government insistence on

possession of degree for a large number of jobs, as well as the desire of many of the

first generation learners to move up on the social and economic scale are some of the

factors responsible for this situation.

4.1. PLAN PRIORITIES

In the post-independence period, problems of higher educational reconstruction,

expansion, qualitative improvement and financial implications thereof were reviewed


90

by various enquiry commissions and committees, especially the Scientific Manpower

Committee (1947) and the University Education Commission (Radha Krishnan

Commission) 1948-49. The recommendations of these commissions and committees

jointly with the constitutional provisions became the source for priority determination

with respect to education in the first three Five Year Plans of the country.

4.1.1. FIRST FIVE YEAR PLAN (1951-56)

This First Plan focused on primary and secondary education more than the higher

sector of education. The reason was obvious that, in 1951 the state of India was

backward in terms of literacy. At the national level, the University Grants

Commission was set up in 1954, in order to meet the aspiration of India, in the field of

higher education.

Another area on which attention was drawn in the First Five Year Plan also suggested

by University Education Commission, was the encouragement and implementation of

non-formal education to avoid overcrowding and to deal with the problem of

numbers, on the one hand, and on the other, to give opportunity to those who have to

start earning early in life, in order to be able to educate themselves further. Among the

different non-formal forms of education are part time courses as well as distance

education. By far the most popular and most effective form is the correspondence

course, which has given rise to the Open University system.

4.1.2. SECOND FIVE YEAR PLAN (1951-61)

The Second Five Year Plan provided a larger emphasis to basic education, expansion

of elementary education, diversification of secondary education, improvement of

standards of College and University education, expansion of facilities for technical


91

and vocational education and the implementation of social education and cultural

development programmes.

For improving the quality of University and College education and for reducing

wastage and stagnation of students who are unable to qualify, a number of measures

were taken by the University Grants Commission. In the field of technical education,

long term planning was undertaken. The Indian Institute of Technology, Kharagpur,

was established as the first technological institute recommended by the All India

Council for Technical Education.

With the passing of the resolution on scientific policy under the leadership of

Jawaharlal Nehru, the development of science, technology and scientific research

received special emphasis in higher education in Uttar Pradesh as well.

4.1.3. THIRD FIVE YEAR PLAN (1961-66)

The main emphasis in this plan was on provision of facilities for the education of all

children in the age group 6-11. The education of girls was also given special

importance. Restructuring of University education and facilities for post graduate

studies and research work was to be further expanded and improved.

This plan witnessed periods of national crisis. It focused on the need of skilled

manpower for the economy, which was considered to be a major determinant for the

measure of advance which could be achieved in different directions. Because of the

two wars of 1962 and 1965 the period of the Third Plan proved to be a difficult one

from the viewpoint of maintaining a pre-determined allocation of resources to the core

sectors for building up a sound economic base of the country. It came to be

considered with those in the sector of social services. Unsurprisingly education got


92

affected, not only in the remaining years of the Third Plan but also in the subsequent

Five Year Plan as well of the country.

It was towards the end of the Third Plan that a need was felt to review the education

system with a view to initiating a more balanced effort at educational reconstruction.

Consequently the Education Commission (Kothari Commission) 1964-66 was

appointed to advise on “the national pattern of education and on the general principles

for development of education at all stages and in all aspects”.

4.1.4. FOURTH FIVE YEAR PLAN (1969-74)

In the Fourth Plan, an attempt was made to provide at the first stage free and

compulsory education up to the age of 11 years. Emphasis was also laid on

vocationalisation of education at the secondary stage and on the provision of part time

and correspondence courses. While noticing the flow of students from secondary to

higher education the Fourth Plan asserted that the watch-word in the sphere of higher

education could be consolidation and strengthening of existing institutions rather than

opening of new ones except where the needs were really vital. Accordingly it

proposed to establish a new university and laid stress on the improvement of science

education. It decided that universities and degree colleges would be given suitable

development grants to lift the matching grants from the UGC and to raise the

standards of higher education and research. The Fourth Plan also emphasized on

diversification of courses so as to meet the diverse needs of skilled manpower of

requisite standard.


93

4.1.5. FIFTH FIVE YEAR PLAN (1974-79)

The Fifth Plan laid emphasis on

(a) Ensuring equality of opportunities as part of the overall plan of ensuring

justice.

(b) Establishing closer links between the patterns of education on the one hand

and the needs of development and employment market on the other.

(c) Improving the quality of education imparted

(d) Involving the academic community, including students in the task of social

and economic development.

Unfortunately due to change of government the original Fifth Plan formulates by the

Congress government was scrapped.

4.1.5.1. FIVE YEAR PLAN (1978-83)

The life of Fifth Five Year Plan (1974-79) was shortened by one year and the concept

of annual rolling plan was introduced. It was launched by the Janta Party Government

and abandoned in 1980 when the Congress again came to power at the Centre. This

Five Year Plan based on the principle of Rolling Plan declared a freeze on higher

education. It observed that no universities needed to be set up, colleges were to be

established with great restraint and only after ensuring adequate resources. It

forcefully argued higher allocation of resources to lower levels of education. The

decision of the Government to discourage expansion of higher education was to be

seen in the context of increasing educated unemployment with higher levels of

education in the country.


94

4.1.6. SIXTH FIVE YEAR PLAN (1980-85)

It was launched by the Congress government when it regained power at the Centre.

The Sixth Plan took note of the ‘undesirable’ growth of the general higher education

especially at the undergraduate level. The Plan assigned highest priority to elementary

education and higher education in turn was deprived of its claims.

The recognition of widespread educated unemployment which was noted by the Janta

Government Plan (1978-83) continued to disturb the plan makers even during Sixth

Five Year Plan 1980-85. This was the main reason the priorities were concentrated on

lower levels of education with a view to meet constitutional obligation in the field of

providing education to children. Universalisation of elementary education was given

serious consideration especially in the educationally backward states. An important

link between education and development is provided by manpower development

through vocationalisation of secondary education related to employment. The

redesigning of undergraduate courses and their restructuring to improve employment

orientation were extended during the Sixth Plan.

4.1.7. SEVENTH IVE YEAR PLAN (1985-90)

The main aim of the Seventh Plan was to improve the capability of the country’s

abundant human resources with equity for development. In the Seventh Plan, priority

was given to universalize elementary education by 1990 for the children in the age

group of 6-14 years. Focus was given to women, youth and economically weaker

groups.

The main emphasis in higher education was on consolidation, improvement in

standards and reforms in the system to make higher education more relevant to


95

national needs and to form linkages with employment and economic development.

Expansion of general higher education was to be carefully planned to meet the needs

of the weaker-sections. With the setting up of the Indira Gandhi National Open

University (IGNOU) in New Delhi during the Seventh Five Year Plan, respectability

as well as credibility was provided to the non-formal system of higher education.

The National Policy on Education (NPE) 1986 was formulated a year after the

beginning of the Seventh Five Year Plan, followed by a Programme of Action to

implement it. Development of human resources was its primary aim. In the section on

Secondary Education under the chapter, “Education Culture and Sports” of the

Seventh Five Year Plan, the Government of India declared, “Unplanned growth of

high/higher secondary schools will be checked. Norms for the establishment of

secondary schools will be evolved and strictly observed in order to avoid proliferation

of economically non-viable and educationally inefficient institutions. In expanding the

facilities, special attention will be given to the needs of backward area, of under

privileged sections of the population and of girls. Girls education will be free up to the

higher secondary stage”.

Another important area needing special attention was training of teachers.

Programmes were designed to impart knowledge of new methods and techniques of

teaching, learning and evaluation. In order to modernize the university administration

in the field of technical education, which is closely related to higher education,

emphasis was on:

(1) Consolidation and optimum utilization of infrastructure and other facilities.


96

(2) Improvement of standards of technical education and removal of

obsolescence.

(3) More effective management for optimum returns on investment.

(4) Innovative measures to improve techniques

(5) Institutional linkages between technical education and development of rural

and other sectors.

4.1.8. EIGHTH FIVE YEAR PLAN (1992-97)

The goal of the Eighth Plan was human development, of which human resource

development is a necessary pre-requisite. Education is the main factor which leads to

human resource development. The thrust areas in the Eight Plan included following

(1) Integrated approach to higher education

(2) Excellence in higher education

(3) Expansion of education in an equitable system, financially self-supporting.

(4) Making higher education relevant in the context of changing socioeconomic

scenario.

(5) Promotions of value education, and

(6) Strengthening of management systems in the universities.

The strategy for achieving the goals in these thrust areas was stated to be as follows:

(1) The higher education system comprising of general, technical, medical and

agricultural streams was fragmented in terms of structures and policies.


97

Greater cooperation among the streams was to be encouraged by promoting

networking, sharing of facilities and development of manpower including

teachers’ training/orientation facilities. There should be greater coherence in

policy and planning. In order to adequately meet these requirements, the NPE

had envisaged the establishment of a National Council of Higher Education

(NCHE) for which a coordination mechanism should be constituted during the

plan period.

(2) Several measures would be taken to promote excellence. The NPE/POA

proposal for establishment of National Assessment and Accreditation Council

(NAAC) would be followed up.

(3) Expansion in higher education enrolment (10 lakh during the Eighth Plan, out

of which 9 lakh at the undergraduate level), keeping in view the present

resource crunch, would be accommodated in an equitable and cost-effective

manner, mainly by large scale expansions of distance education system, and

providing opportunities to larger segments of population, particularly the

disadvantaged groups like women, and people living in backward and hilly

areas, and by measures for resources generation. The programmes of distance

education should absorb at least 50% of traditional enrolment during the

Eighth Plan and their cumulative enrolment should reach 15 lakhs, including 5

lakh adult learners beyond the normal age group 17-23 who had left school

long back. Simultaneously, involvement of voluntary agencies and private

sector participation in the opening and conduct of higher education institutions

would be encouraged with proper checks to ensure maintenance of standards

and facilities to make higher education, as far as possible, self-financing.


98

However, the quality of higher education is not to be compromised at any cost.

Upward revision of the fee structure has to be considered but at the same time,

the fees charged should not be exorbitant and should be supplemented by the

provisions of scholarships and other financial assistance to SCs/STs and

students below the poverty line and loans to other students.

(4) The tremendous potential of 44.25 lakh students enrolled in higher education

was to be utilized by actually involving them in the programmes of adult

literacy, continuing education, population education and other constructive

activities.

(5) The significance of value education was stressed by several committees and

commissions on education. The Planning Commission has constituted a core

group on value orientation in education. The recommendations of core group

will be considered for implementation in consultation with the Ministry of

Human Resource Development, U.G.C., Association of Indian Universities

(AIU) and NCERT.

(6) Stress would also be laid on modernization and restructuring of the

management of university system, which entails vigorous pursuit of the

programmes of autonomous colleges and autonomous university departments.

Facilities in universities and colleges, including research facilities, would be

consolidated and strengthened. The scheme of redesigning and restructuring of

courses to meet the developmental needs of the country, examination reforms,

and teachers’ training would be expanded.


99

(7) The Eighth Plan document asserted that the priorities mentioned in details

were by no means “exhaustive”. It recognized that higher education was a vast

sector and its significance as a source of new knowledge, research and

manpower for preceding stages of education, viz; elementary and secondary

should not be minimized. The document advised that adequate resources

should be mobilized and provided to support higher education sector so that

the nation could be fully equipped to face free challenges of the future, which

was increasingly becoming information and knowledge intensive.

4.1.9. NINTH FIVE YEAR PLAN (1997-2002)

Education is the most crucial investment in human development. The Ninth Plan

treats education as one of the priority areas of development. An over-riding priority

was given to provide access to schooling to children in the age group 6-11 years.

Emphasis was also given to girl’s education by providing free education up to college

level including professional courses. Vocational education at the secondary and

undergraduate levels was expanded and restructured. Non-governmental organizations

were encouraged to supplement the governmental efforts; private sector was also

facilitated to grow mainly in higher and technical education. Education in basic

sciences and areas of fundamental research was promoted and strengthened.

Emphasis was placed on consolidation and optimal utilization of the existing

infrastructure through institutional networking, restricting expansion to meet the

demand of unserved areas through Open University system. Grant-in-aid was linked

to performance criteria to improve quantity and inject accountability. Fees were

restructured on unit cost criteria and paying capacity of the beneficiaries. Additional


100

resources were granted by involving industry and commerce and through contribution

from community.

4.1.10. TENTH FIVE YEAR PLAN (2002-2007)

`Performance in the field of education was one of the most disappointing aspects of

India’s developmental strategies. Out of approximately 200 million children in the age

group 6-14 years, only 120 million were in schools and net attendance at the primary

level was only 66% of enrolment in the Ninth Five Year Plan. This was completely

unacceptable and the Tenth Plan aimed at a radical transformation in this situation.

Education for all was one of the primary objectives of the Tenth Plan. Assertion of the

dignity of labour and vocationalisation of curricula were essential to ensure that a

disjunction does not take place between the educational system and work place.

The Tenth Five Year Plan focused on improving access and reducing disparities by

emphasizing the Common School System in which it was compulsory for schools in a

particular area to take students from low income families. The Tenth Plan also gave

priority to the revision of curricula with emphasis on vocationalisation and

employment-oriented courses, expansion and diversification of the open learning

system, reorganization of teacher training and greater use of new information and

communication technologies particularly computers. The major thrust in the Tenth

Plan was to meet the increased demand for secondary education.

In the field of higher education, Tenth Plan emphasized on raising the enrolment of

the 18-23 year age group from the present 6% to 10%. The strategies focused on

increasing access, quality, adoption of state specific strategies and the liberalization of

the higher education system. The Tenth Five Year gave importance to distance


101

education, co mergence of formal, non-formal, increased private participation in the

management of colleges and deemed to be universities, research in frontier areas of

knowledge and meeting challenges in the area of internationalization of Indian

education.

4.1.11. ELEVENTH FIVE YEAR PLAN (2007-2012)

In the review of the Tenth Plan (2002-2007) the focus was on primary education with

an expenditure of over Rs 50,000 crore, whereas, the expenditure on university and

higher education was below Rs 800 crore. The growth of higher education system

during the Tenth Plan was increased i.e. the number of universities increased from

201 in 2002 to 378 in 2007 and the number of colleges from 12,342 in 2002 to 18,064

in 2007. During the Tenth Plan, NAAC was strengthened with the opening of four

regional centres so as to speed up the accreditation process.

Our GER of higher education around 11% is very low compared to the world average

of 23.2%, 36.5% for countries in transition, 54.6% for the developed countries, and

22% for Asian countries.

The Government should aim to increase the GER to 21% by the end of the Twelfth

Plan with an interim target of 15% by 2011-12. To achieve this, the enrolments in

universities/colleges need to be substantially raised at an annual rate of 8.9% to reach

21 million by 2011-12 requiring an additional enrolment of 8.7 lakh students in

universities and 61.3 lakh in colleges.

A welcome development during Tenth Plan was that the share of private unaided

higher education institutions increased from 42.6% in 2001 to 63.21% in 2006. Their

share of enrolments also increased from 32.89% to 51.53% in the same period.


102

Expansion, inclusion and rapid improvement in quality throughout the higher and

technical education system by enhancing public spending, encouraging private

initiatives and initiating the long overdue major institutional and policy reforms forms

the core of the Eleventh Plan efforts. The long-term goal of Government was to set

India as a nation in which all those who aspire good quality higher education can

access it, irrespective of their paying capacity.

4.1.11.1. HIGHER EDUCATION: TARGETS AND STRATEGIES IN

ELEVENTH PLAN

An Inter-Ministerial Working Group was set up to work out a detail reforms agenda

on outlines given below:

4.1.11.1(a). Admission, Curriculum and Assessment

(a) Common calibration and admission based on Common Entrance Test and/or

other relevant criteria for at least professional and PG courses in Central

Universities (CU) in the first phase.

(b) Universalizing the semester system.

(c) Continuous internal evaluation and assessment to eventually replace annual

examinations.

(d) Introducing Credit System to provide students with the possibility of spatial

and temporal flexibility/mobility.

(e) Curriculum revision at least once in every three years or earlier to keep syllabi

in tune with job market dynamics and advancement in research.


103

4.1.11.1(b). Accreditation and Ratings

(a) Introduction of a mandatory accreditation system for all educational

institutions

(b) Creation of multiple rating agencies with a body to rate these rating agencies

(c) Department-wise ratings in addition to institutional rating.

4.1.11.1(c). Teachers’ Competence and Motivation

(a) Restructuring of NET/SET with greater emphasis on recruitment of adequate

and good quality teachers.

(b) Revamping academic staff colleges (ASCs) and upgrading teachers’

capabilities through short and long term courses.

(c) Expansion of research programmes/projects and incentivizing research faculty

through funded projects/research

4.1.11.1(d). Miscellaneous

(a) UGC in consultation with stake holders to arrive at optimum size of

universities and the number of college affiliations.

(b) Setting up of a new Inter-university Centre on higher education to undertake

specialized research for policy formulation.


104

4.1.11.2. AUTONOMY AND ACCOUNTABILITY IN HIGHER

EDUCATIONAL INSTITUTIONS

The issues of autonomy and accountability are very critical. While many initiatives

have already been taken on various aspects, a lot has to be done in near future with

full determination.

Autonomy has three inter-related dimensions:

(1) Institutional autonomy in Academic Matters envisages that there will be a

Governing Board in each institution that will be free to decide future strategies

and directions, the processes governing admissions, curriculum updating,

examinations, classroom processes and the interface with the external

environment as well as to determine the standards and degree of excellence.

The Board should consist of people of eminence and should not have more

than one third of its members from the government, with the others coming

from industry, the professions, and alumni to enable it to draw upon the

services of persons of eminence and provide representation to all stake-

holders.

(2) Governance related autonomy enables the Governing Board and its Academic

Councils to decide on personal policies of the institutes, faculty recruitment

and development plans, core areas of academics, research and consultancy

related strengths, delegation of administrative authority, and its performance

review processes for faculty and non-faculty personnel.

(3) Financial Autonomy will enable institutions to mobilize resources from user

fees, review fee-structures, consultancy services, and donations. They can


105

rationalize their fee structures according to the degree of excellence achieved

both in terms of academic achievement and market value. It will also

unshackle the institutions, enabling them to take bold initiatives regarding

campus accretions/additions, starting new faculties and new disciplines,

creating competencies in new knowledge domains, expanding infrastructure,

and emerging student outreach. The Governing Board should be left free to

evolve policies relating to donations, endowments, scholarships, instituting

chairs, accumulation and deployment of reserves and surpluses, keeping in

mind the overarching principle of equity while fixing fees and determining the

amount of scholarships.

4.1.12. TWELFTH FIVE YEAR PLAN (2012-2017)

The planning Commission has constituted a Working Group on Higher Education for

the formulation of the Twelfth Plan. Education is acknowledged as one of the

important elements of the national development effort and Higher education, in

particular, is one of vital importance for the nation, as it is a powerful tool to build the

knowledge-based society of the 21st century. The activities of Department of Higher

Education are focused towards developing India as a knowledge society. The

Department’s continuous effort is to improve and spread out education in all sectors,

with a view to remove disparities in access and lay greater emphasis on the

improvement in the quality and relevance of education at all levels. The role of

Department, therefore, includes policy formulation, programme implementation,

coordination with other stakeholders, knowledge management, research and

innovation, creation of intellectual property, training and capacity building, reaching

out to disadvantaged sections, women and minorities in the higher education sector.


106

The Department has also established a number of leading institutions which have

come to obtain a reputation for excellence and national importance.

Improvement of access along with equity and excellence, the adoption of state-

specific strategies, enhancing the relevance of higher education through curriculum

reforms, vocationalisation, information technology, and quality of research,

networking and distance education are some of the main policy initiatives of the

higher education sector. The other important policy initiatives in higher education

include programmes for general development of universities and colleges; special

grants for the construction of hostels for women; scholarships to students, schemes to

provide interest subsidy on educational loans for professional course to ensure that

nobody is denied professional education on account of financial means and making

interventions to attract and retain talent in the teaching profession in the higher and

technical education. Emphasis has been laid on expansion with equity, use of ICT

(Information Communication Technology) in education, promotion of research and

quality education.

4.1.12.1. OBJECTVES OF TWELFTH FIVE YEAR PLAN

Following are the objectives of Twelfth Five Year Plan:

(1) To expand the higher education sector in all its modes of delivery to increase

the Gross Enrolment Ratio (GER) in higher education to 15% by 2011-12 and

to 21% by XII Plan and 30% by the year 2020.

(2) To expand institutional base of higher education (including technical,

professional and vocational education) by creating additional capacity in


107

existing institutions, establishing new institutions and incentivizing state

governments and Non-Governmental Organizations/civil society.

(3) To provide opportunities of higher education to socially deprived communities

and remove disparities by promoting the inclusion of women, minorities and

differently-abled persons.

(4) To remove imbalances in access to higher education by setting up of

institutions in unserved and underserved areas.

(5) To enhance plan support for infrastructure and faculty development in the

institutions of higher learning and to attract talent towards careers in teaching

and research.

(6) To create conditions for knowledge generation through improved research

facilities in universities and colleges.

(7) To promote collaboration with International community, foreign governments,

universities/institutions and regional and international institutions, for the

advancement of universal knowledge and intellectual property rights.

(8) To promote development of Indian languages.

(9) To promote autonomy, innovations and academic reforms in institutions of

higher learning.

(10) To undertake institutional restructuring for improving efficiency, relevance

and creativity in higher education.


108

4.2. PLAN EXPENDITURE ON EDUCATION IN INDIA

At the time of Independence, the country was characterized by a weak economic and

social infrastructure and prevalence of mass illiteracy and poverty. Since the mid

1950’s the theory and practice of public expenditure economics have radically

changed. With the parliament passing in December 1954, a resolution adopting the

socialist pattern of society as the objective of economic and social policy, the

government was required to play a crucial role and assume greater responsibility in

financing the social sector.

Tables 4.1, 4.2 and 4.3 show the intersectoral plan outlay in public sector in India.

The total public expenditure which was not even Rs. 2000 crores in the First Five

Year Plan increased consistently, and reached an enormous figure of more than

15,00,000 crores in the Tenth Five Year Plan. While a part of increase is due to

inflation the greater of it is due to the expansion in all sectors of the economy as well

as greater role played by the government in the economic affairs of the country.

These tables show that the social sector, which accounted for 24% (Rs. 472 crores) of

plan outlay in the First Plan lost priority in subsequent plans. Though the Fourth Plan

raised the outlay to 25% (Rs. 3986 crores) in the Fifth Plan it fell to 17% and

remained more or less at this level for the next three plan periods. The Ninth and

Tenth Plans again witnessed a rising public expenditure on the social sector.

Education is an important component of the social sector. Expenditure on education

was 7.6% in the First Five Year Plan, but got reduced subsequently, and by the Fifth

Five Year Plan, it was 3.8% only. In fact, as will be observed from data for the

successive plans, percentage expenditure on education could never get the priority

that was accorded to it the First Plan.


109

Table 4.1: Inter Sectoral Plan Outlay in Public sector in India (Actuals) (First to Fifth Plan) (Rs. in Crores)

Sector First Plan

1951-56

Second Plan

1956-61

Third Plan

1961-66

Annual Plans

1966-69

Fourth Plan

1969-74

Fifth Plan

1974-79 Agriculture & Allied Services

290 (15)

549 (12)

1089 (13)

1107 (17)

2320 (15)

5229 (13)

Irrigation & Flood Control

434 (22)

452 (10)

664 (8)

471 (7)

1354 (9)

3914 (10)

Power 149 (8)

430 (9)

1052 (12)

1212 (18)

1932 (12)

7492 (19)

Industry & Mining

97 (5)

1125 (24)

1967 (23)

1636 (25)

3107 (20)

9741 (24)

Transport & Communication

518 (26)

1261 (27)

2112 (25)

1222 (18)

3080 (20)

6830 (17)

Social & Comm. Services

472 (24)

855 (18)

1693 (20)

977 (15)

3986 (25)

6891 (17)

of which education

149 (7.6)

273 (5.84)

589 (6.87)

307 (4.63)

786 (4.90)

1526 (3.81)

Total Plan 1,960

(100.0) 4,672

(100.0) 8,577

(100.0) 6,626

(100.0) 15,799 (100.0)

40,097 (100.0)

Source: Various Plan Documents, Planning Commission, Government of India. Note: Figures in Parentheses indicate percentages

From the Eight Plan onwards began a period of economic reforms with privatization

as one of the important elements of it. Though governments commitment to the social

sector was reiterated the education sector, especially higher education expanded in an

unprecedented manner. Government’s support to the education sector saw a decline as

is reflected by public expenditure on education from Eighth to Tenth Plan.

In a poor country, the government intervention is necessary to support the social

sector. And education, an important component of the social sector, accounted for

lesser amounts with each successive Plan, not even 3% in the Sixth Plan. The

percentage of expenditure allocated to education was marginally higher in the Seventh

Plan, at 3.5% shown in table 4.2. In Eighth Plan it was 4.37% but in Tenth Plan it

again declined to 3.72%.


110

Table 4.2: Inter Sectoral Plan Outlay in Public Sector in India (Sixth to Tenth Plan) (Rs in Crores)

Head Sixth Plan (1980-85)

Seventh Plan

(1985-90)

Eighth Plan

(1992-97)

Ninth Plan (1997-2002)

Tenth Plan (2002-2007)

Agriculture and Allied Activities

6623.5 (6.1)

12762.6 (7.0)

25235 (4.92)

37239 (3.86)

60702 (3.61)

Rural Development

6996.8 (6.4)

15246.5 (7.0)

40596 (7.92)

88965 (9.22)

137710 (8.19)

Special Area Programme

1580.3 (1.4)

3470.3 (1.6)

4907 (0.96)

5408 (0.56)

16423 (0.98)

Irrigation and Flood Control

10929.9 (10.0)

16589.9 (7.6)

31982 (6.24)

69830 (7.24)

112415 (6.69)

Energy 30751.3 (28.1)

61689.3 (28.2)

131188 (25.6)

219243 (22.72)

363635 (21.63)

Industry and Mining

16947.5 (15.5)

29220.3 (13.4)

43101 (8.41)

44695 (4.63)

64655 (3.85)

Transport 14208.4 (13.0)

29548.1 (13.5)

67395 (13.15)

143249 (14.05)

263934` (15.7)

Communication 3469.5 (3.2)

8425.5 (3.9)

37332 (7.28)

92836 (9.62)

82945 (4.93)

Science and Technology

1020.4 (0.9)

3023.9 (1.4)

6588 (1.29)

15667 (1.62)

28673 (1.7)

Social Services 15916.6 (14.5)

34959.7 (16.0)

91459 (17.85)

194529 (20.16)

436529 (25.97)

of which education

2976.6 (2.7)

7685.5 (3.5)

22407 (4.37)

23792 (2.47)

62461(BE*) (3.72)

General Economic Services

_ 2249.6 (1.0)

6758 (1.32)

13734 (1.42)

30349 (1.81)

Others 847.5 (0.8)

1513.8 (0.7)

3508 (0.68)

15646 (1.62)

20489 (1.22)

Total 109291.7 (100.0)

218729.6 (100.0)

512456 (100.0)

964833 (100.0)

1680921 100.0)

Source: Various Plan Documents, Planning Commission, Government of India. Note: figures in Parentheses indicate percentages *Tenth Plan Budgeted Estimates represent the actual allocation during the five years and not the original tenth Plan projections.

Not only has there been a reduced percentage allocation to the educational sector, the

amount initially proposed gets reduced at different stages of the planning process.

Although, by and large, the sector of education is under the jurisdiction of the State

Government, some responsibility such as co-ordination of educational facilities,

determination of standards of higher education, scientific and technical education, has


111

been entrusted to the Centre. The 42nd amendment to the Constitution of India in1976

brought Education from the “State List” to the “Concurrent List” whereby Central

Government gained more power to intervene in education at all levels.

The Eleventh Plan outlay for education was Rs. 274228 crores, which works out to

7% of total outlay. However, the expenditure on education during first year of the

Eleventh Plan was only 5.1% of total outlay which declined to 4.26% of total outlay

in 2009-10 as shown in table 4.3.

Though percentage allocation to education has declined significantly, on examining

plan resources to education we find that there has been a rapid rise in the absolute

amount of expenditure on education since the First Plan. From Rs. 149 crores in the

First Plan, plan expenditure on education increased to Rs 274228 crores in the

Eleventh Plan. The Plan expenditure on education increased to Rs 273 crores, Rs 589

crores, Rs 786 crores, Rs 1526 crores, Rs 2977 crores, Rs 7686 crores, Rs 22407

crores, Rs 23792 crores and Rs 62461 crores in the Second, Third, Fourth, Fifth,

Sixth, Seventh ,Eighth, Ninth and Tenth Plan respectively. In spite of increased

absolute amount of expenditure during the plan periods, in percentage terms the First

Plan figure of 7.6% on education could not be reached again for any plan period. This

amount is much less than what is spent in other countries on education. With

government’s emphasis on human development this is a poor reflection of the

readiness of government to spend on education.


112

Table 4.3: Inter-Sectoral Plan Outlay in Public Sector in India

(Eleventh Plan 2007-2012) (Rs.in Crores)

Head Eleventh Plan

2007-12 (Outlay)

Annual Plan

2007-08

Annual Plan

2008-09

Annual Plan

2009-10

Annual Plan

2010-11

Agriculture & Allied Activities

136381 (3.48)

18489 (3.3)

23405.05 (3.4)

27916.67 (3.50)

39717.20 (4.5)

Rural Development

301069 (7.68)

33674.7 (6.01)

61334.65 (9.06)

65787.07 (8.26)

71331.49 (8.07)

Irrigation & Flood Control

210326 (5.37)

38909.25 (6.9)

43295.92 (6.3)

49217.43 (6.18)

48515.22 (5.5)

Energy 854123 (21.79)

101019.21 (18.0)

132594.84 (19.5)

144743.72 (18.18)

169744.04 (19.2)

Industry & Minerals

153600 (3.92)

22873.08 (4.08)

32217.16 (4.7)

39561.66 (4.96)

49599.84 (5.6)

Transport 572443 (14.61)

99340.77 (17.7)

114773.83 (16.9)

130849.25 (16.43)

143514.31 (16.2)

Communications 95380 (2.43)

16598.61 (2.9)

20236.68 (2.9)

16099.47 (2.02)

16979.04 (1.9)

Science, Technology & Environment

87933 (2.24)

10473.11 (1.87)

12089.15 (1.7)

14060.76 (1.76)

21638.35 (2.4)

General Economic Services

62523 (1.6)

9410.64 (1.68)

13278.19 (1.9)

12467.24 (1.56)

173622.32 (19.6)

Social Services 1102327 (28.13)

166368.59 (29.7)

209604.86 (30.9)

242681.35 (30.48)

146777.26 (16.6)

Of which education

274228 (7.0)

28674 (5.1)

- 33944 (4.26)

-

General Services 42283 (1.08)

6764.43 (1.2)

5547.06 (0.8)

11142.36 (1.39)

11663.49 (1.3)

Special Area Programmes

26329 (0.67)

7672.44 (1.37)

8152.05 (1.2)

7632.78 (0.96)

963800.70*

TOTAL 3918946 (100)

560267.83 (100)

676529.44 (100)

796103.76 (100)

882816.25 (100)

Source: Various Plan Documents, Planning Commission, Government of India and Annual Plan Reports. Note: Figures in brackets show the percentages. The percentages do not add up to 100.0 due to rounding. *Special Area Programme excluded for Annual Plan 2010-11.

4.3. PLAN EXPENDITURE ON HIGHER EDUCATION IN INDIA

The most important head under social sector is education both in terms of expenditure

as well as in terms of its impact on the economy. Education is the catalytic factor,


113

which leads to human resource development comprising better health and nutrition,

improved socio-economic opportunities and more congenial and beneficial natural

environment for all.

Education at the base level or primary education is very important because it helps in

removing the stranglehold of traditions, which characterize the society in under

developed countries, and these traditions discourage development and growth.

Education at the secondary level provides the base for higher and technical education.

Higher education is important as it provides manpower for higher cadre posts both in

private and public sectors. It hastens and facilitates the process of national

development by encouraging scientific temper in students and encouraging them to

develop and progress so that they can live a satisfying existence.

The National Policy on Education, 1986 and the Programme of Action (POA) 1992

envisage free and compulsory education of satisfactory quality for all children up to

the age of 14 years before the commencement of the 21st century. As per the

commitment of the Government, about 6% of the Gross Domestic Product (GDP)

would be earmarked for Education Sector and 50% of the outlay would be spent on

Primary Education.

National Policy on Education, 1986, which visualizes education on different plane,

has envisaged a new role for higher education that is more meaningful in the context

of societal development. The government has tried to give a new direction to an age

old process. According to the NPE areas that need attention range from autonomy of

colleges and departments to better infrastructure, rationalized funding for research,

integration of teaching, research and evaluation to make higher education dynamic as

never before.


114

With the commitment of augmenting resources for education, the allocation to

education has, over the years increased significantly. The increased literacy rate

(65.38%) in India is not very much encouraging so far as economic development of

this country is concerned.

Table 4.4 and 4.5 gives data on plan expenditure on sub-sectors of education in India

during the planning period. Plan expenditure on total education increased from Rs.

149 crores in the First Five Year Plan to Rs. 43825 crores in the Tenth Five Year

Plan. However, percentage allocation to total education which was 7.6% in the First

Five Year Plan witnessed a successive decline subsequently and was only 2.7% in the

Sixth Plan. It then increased to 3.5% and 4.5% in Seventh and Eighth Plans

respectively but it then again decreased and was 2.8% in the Ninth and Tenth Five

Year Plan.

In the case of elementary education, the plan expenditure has increased from Rs. 81

crores in the First Plan to Rs. 16364.88 crores in the Ninth Plan. Percentage allocation

to elementary education has declined from 54% in the First Plan to 30% in the Fourth

Plan. Subsequently it increased to 35% in the Fifth Plan and 36% in the Sixth Plan.

The percentage share, then, again declined to 31% in the Seventh Plan. The Ninth

Plan envisages universalisation of elementary education to mean universal access,

universal retention and universal achievement. As a result, the percentage share then

increased sharply and was at 65.7% in the Ninth Plan and 68.1% in Tenth Plan.


115

Table 4.4: Plan Expenditure on Sub-Sectors of Education in India

(First to Fifth Plan) (Rs. in Crores)

Sub-Sector First Plan

(1951-56)

Second Plan

(1956-61)

Third Plan

(1961-66)

Annual Plan

(1966-69)

Fourth Plan

(1969-74)

Fifth Plan (1974-79)

Elementary Education

81 (54)

95 (35)

201 (34)

86 (28)

239 (30)

532 (35)

Secondary Education

20 (13)

51 (19)

103 (18)

49 (16)

140 (18)

275 (18)

Higher Education

14 (9)

48 (18)

87 (15)

68 (22)

195 (25)

336 (22)

Others Including Technical Education

34 (22)

79 (28)

201 (33)

104 (34)

213 (27)

381 (25)

Grand Total

149 273 589 307 786 1526

As% of Total Plan

7.6 5.8 6.9 4.6 4.9 3.8

Source: various Plan Documents, Planning Commission, Government of India. Note: Figures in brackets indicate percentages.

On secondary education, Plan expenditure has increased from Rs. 20 crores in the

First Plan to Rs. 4325 crores in the Tenth Plan. We see a varied position of the

percentage share over the plan period but for most of the period it varied between

16% to 18%.

Regarding plan expenditure on higher education, it was only Rs. 14 crores in the First

Plan and then it increased subsequently to Rs. 4176.5 crores in the Tenth Plan.

However, percentage allocation to higher education increased from 9% in the First

Plan to 25 % in the Fourth Plan. Since then there has been a steady decline, with only

8% of educational finance going to higher education in the Eighth Plan. The

percentage share of higher education was slightly higher at 10% and 9.5%

respectively in the Ninth and Tenth five Year Plans. A drastic reduction in higher


116

education’s share between the Seventh and Eighth Plans is again a reflection of

government withdrawal from this sector and open encouragement and easy access to

the private sector to invest in this area. This led to proliferation of large number of

institutions, many of doubtful quality, in this sector.


(Sixth to Tenth Plan) ( Rs.in Crores)

Sub-Sector Sixth Plan (1980-85)

Seventh Plan

(1985-90)

Eighth Plan

(1992-97)

Ninth Plan (1997-02)

Tenth Plan (2002-07)

Elementary Education

906 (36)

1964 (31)

9201 (46.9)

16364.88 (65.7)

29879.0 (68.1)

Secondary Education

398 (16)

1610 (25)

3498 (17.8)

2603.50 (10.4)

4325.0 (9.8)

Higher Education

486 (19)

1201 (19)

1516 (8)

2500.00 (10.0)

4176.5 (9.5)

Others Including Technical Education

735 (29)

1607 (25)

5385 (27.5)

3439.62 (13.8)

5444.5 (12.4)

Grand Total 2525 6382 19600 24908 (100)

43825 (100)

As % of Total Plan

2.7 3.5 4.5 2.8 2.8

Source: Various Plan Documents, Planning Commission, Government of India. Note: Figures in brackets indicate percentages.

Most of these ‘for profit’ institutions are offering courses in business management,

tourism, hospitality management, chartered accountability, financial management, law

etc. This had brought about a skewed growth in higher educational institutions.


117


(Eleventh Five Year Plan 2007-2012) (Rs in Crores)

Sectors Eleventh Plan Outlay Percent Share

Elementary Education 125380 44.8

Secondary Education 53550 19.2

Adult Education 6000 2.15

School Education and Literacy

184930* 66.2*

Technical Education 20228 7.2

Higher Education 64715 23.2

Others 9524.11 3.4

Grand Total 279397.11 100

Source: Annual Plan 2009-10, Planning Commission, Government of Idia. *School education and literacy includes elementary education, secondary education and adult education. The data for school education and literacy is the sum of the data for elementary education, secondary education and adult education.

In Eleventh Plan School education And Literacy has been given the Highest Priority.

Table 4.6 shows that out of the total outlay of Rs 279397.11 crore envisaged in the

Eleventh Plan allocation for Education (Central Sector), including Higher Education

and Technical education, an amount of Rs 184930 was for School Education and

Literacy, including Rs 125380 crore for Elementary Education, Rs 6000 crore for

Adult Education and Rs 53550 crore for Secondary Education. The share of education

in the total plan outlay will correspondingly increase from 7.7% to 19.4%. Thus,

around 45% of the Eleventh Plan educational outlay is for elementary education and

literacy and 19.2% for secondary education and 23.2% for higher education.


118

4.4. HIGHER EDUCATIONAL EXPENDITURE AS PERCENTAGE OF

SOCIAL SERVICE EXPENDITURE

The most important head under social sector is education in terms of expenditure as

well as in terms of its impact on the economy. Other heads are health and nutrition,

water supply, housing, sanitation etc. Education at the base level or primary education

is very important as it helps in removing the stranglehold of traditions, which

characterized the society in underdeveloped countries and is inimical to growth and

development. Basic education is a catalyst of social change. Spread of education helps

to overcome the traditional inequalities of caste, class and gender. Education is widely

perceived by socially and economically disadvantaged groups as the only means of

moving up the social ladder and overcoming economic backwardness. Education at

the secondary level provides the base for higher and technical education. Higher

education is important as it provides manpower for higher cadre posts both in the

private and public sectors. It hastens and facilitates the process of national

development by encouraging scientific temper in students and inculcating them the

urge to develop, to progress, to be able to live a satisfying existence.

After the independence of the country, the Five Year Plans ushered in an era of

systematic economic and social development in India. In the Plan priorities social

services were assigned noteworthy priority and efforts were made for all round

development of education.


119

Table 4.7: Higher Educational Expenditure as Percentage of Social Service Expenditure (Rs. in crores)

Plans Social Service Expenditure

Expenditure on Higher

Education

Higher Educational

Expenditure as percentage of social service expenditure

First Five Year Plan 472 14 2.96 Second Five Year Plan 855 48 5.61 Third Five Year Plan 1693 87 5.14 Fourth Five Year Plan 3986 195 4.89 Fifth Five Year Plan 6891 336 4.86 Sixth Five Year Plan 15916.6 486 3.05

Seventh Five Year Plan 34959.7 1201 3.44 Eighth Five Year Plan 91459 1516 1.66 Ninth Five Year Plan 194529 2500 1.29 Tenth Five Year Plan 436529 4176.5 0.96 Eleventh Five Year

Plan 1102327 64715 5.87

Source: Calculated from Tables 4.1, 4.2, 4.3, 4.4, 4.5 and 4.6.

Table 4.7 shows that there has been an enormous increase in higher educational

expenditure from just Rs. 14 crore during the First Plan to Rs. 64,715 crore during the

Eleventh Plan. Higher educational expenditure as percentage of social service

expenditure was 2.96 percent in the First Plan jumping to 5.61 percent in the Second

Plan. The Plan laid stress on improvements in standard of colleges and university

education and extension of facilities for technical and vocational education. The

proportion spent on higher education in the Third Plan was the same but subsequently

declined. A drastic reduction in the Eighth Plan heralded onset of a wave of the

privatization which continued during the next two plans also. Because the goal of

Eighth Plan was human development, of which human resource development was a

necessary pre-requisite, during this plan, early childhood education was emphasized

and sought to be expanded. Again, in Tenth Plan higher educational expenditure as

percentage of social service expenditure reduced to 0.96 percent as the major thrust in


120

the Tenth Plan was to meet the increased demand for secondary education. The

eleventh Plan with its focus on improving the quality of education to improve India’s

competitiveness in the globalised economy, allocated 5.87 percent of social sector

expenditure on higher education.

The two most important components of social sector are education and health. It was

expected that the share of education and consequently of higher education has

remained constant over the period under study, though in terms of actual

expenditures a phenomenal increase in both has taken place and this shown in the data

in relevant tables. As the state of health as well as that of education was poor when

planned development was launched in India, both these sectors required heavy

investments. It was therefore expected that over the period their relative significance

would remain the same.

Data on Education Expenditure as a ratio of Social Service Expenditure in selected 15

states over the period 1990-91 to 2007-08 shows that an increasing percentage of

social service expenditure has been devoted to education, which obviously means that

the other important component, i.e., health as well as other components has been

receiving a smaller share over time [table 6.12(a)]. Higher educations’ share in total

education was between 5 percent to 12 percent on an average. Besides, over the entire

period the share of higher education in total educational expenditure has fallen for

almost all the major states except Assam, Bihar and Orissa [table 6.12(c)]. However,

because the share of education in total social service expenditure increased the share

of higher education expenditure in eight out of fifteen states actually increased, in two

states there was a reduction while in the rest it remained more or less the same. Thus

an inconclusive picture has emerged. However, if we examine the plan data, from the


121

First to the Eleventh, we find that the share of higher education in social sector

expenditure in the First Plan was low, then almost doubled in the Second Plan.

Subsequently there was a consistent fall to as low as 0.96 in the Tenth Plan (table

4.7). A sharp reduction after the Seventh Plan is notable which was not unexpected as

it was during this period that economic reforms were undertaken. Higher education

sector started to be viewed as a non-merit good by the government. An era of large

scale privatization set in, especially in the sector of higher education. Government

gave a free hand to the private sector which led to sprouting of a large number of

higher education institutions, especially in areas like business management, finance,

engineering, law, hospital sector, information technology etc. many of these were of

dubious quality. So far as government expenditure on higher education was

concerned, its emphasis was on consolidation of existing facilities rather than

expansion

Hypothesis II, namely, “Higher educational expenditure as percentage of social

service expenditure has remained constant over the period under study”, therefore

stands negated as it is clear that higher education as percentage of social sector

expenditure was inconsistent and did not remain constant.