Year: 2015 | Month: August | Volume 6 | Issue 2
Management of Public Expenditure on Education for Sustainable Economic Growth-A study of
Abstract:
Education plays an important role in the growth and prosperity of a nation and financial resources assume much significance in ensuring accessibility, equity and quality in education. Expenditure on education is an investment that can help foster economic growth. But, at present the education budget is declining day by day which is creating serious financial constraints in the working of education system. So, there is a need for effective and efficient use of financial resources. The present study attempts to concentrate on the management of public expenditure on education for sustainable economic growth in India. The data variables used in the present study are Government expenditure on education and Gross Domestic Product at real prices. The study period has been taken from post liberalization period i.e.1991-92 to 2011-12.CAGR (Compound Annual Growth Rate) has been used to examine the growth of education expenditure by using log linear regression model. Ordinary least square regression has been used to study the impact of education expenditure on economic growth. Study found that the public expenditure on education increased remarkably but the rate of increase not necessarily kept pace with students’ enrollment and number of educational institutions. The regression results shows that increase in government expenditure on education has positive impact on economic growth which leads to sustainable development. So, there is a need to stress upon the central government, state government and planning commission to revise their thinking while making allocation of resources to education.There is a need for sustainable funding of education sector to maintain the sustainable economic growth.
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