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Sanjiv Kaura

While education has been prioritised in many developing countries, India has failed to do so. Will this Budget bring more funds for this sector, asks Sanjiv Kaura.

On February 15, 2002, the Finance Minister's wife echoed the desires of 100 million children out of school when she said that she wanted every child to hold a book.

She went on to echo the wishes of another 100 million children caught in the pathetic government school trap when she said that she wanted basic, quality education for every child in India.

Unfortunately, all these cost money and the Finance Minister must do the needful to capture the aspirations of the children, and his wife.

Last year, the Finance Minister assured that allocations to the social sector would increase by Rs 5,000 crore, provided PSUs were sold. The disinvestment process has already started, and one wonders if the Finance Minister would remember his promise. More so when privatisation is the buzzword and promises to be the panacea of all ills, including that of the education sector.

But wait. Past experience (and an indisputable economics law) has shown that in no country (not even the US) can private initiative supplant the government effort.

At best, it can only supplement it. One reason: the greater portion of the national education effort addresses the poorest of the poor living in hamlets.

A target group unlikely to attract private attention, so Government funding is absolutely needed.

For those who raise their hands in despair, let me add the necessary caveat: the management must be left to the community.

Later in the year, November 28 to be precise, Yashwant Sinha made yet another promise: Education would get an additional Rs 9,800 crore per annum. This statement was made in Parliament when the Lok Sabha unanimously passed a Bill that made education a fundamental right.

Interestingly, the needs, suggested by an expert committee mainly comprising bureaucrats, were almost double this figure. The Tapas Majumdar Committee estimated that achieving quality Universalisation of Elementary Education (UEE) for every 6-14 year old, at 1996 prices amounted to an average additional spending of Rs 14,000 crore per annum. For universalisation of Early Childhood Care and Education (ECCE), the Planning Commission's set of Working Papers stated a figure of Rs 8,000 crore per annum (1989 prices).

Since India has ratified international treaties which define the child as one up to 18 years, a fresh estimate must be done for this age group.

What does this add up to? Only an average 1.2 per cent of the country's GDP. Non-merit subsidies (those that benefit the rich), as admitted by the Finance Minister, are 10 per cent of GDP. He further said, "This issue is now so important that it needs urgent discussion throughout the country. The challenge is to achieve a consensus in such a manner that the poor are protected."

Even if there is a consensus that non-merit subsidies should not be reduced, shouldn't something as important as education have its fair share?

The Kothari Commission (1964-66) recommended spending 6 per cent of the GDP on education and the two National Policies of Education (1968 and 1986) promised the same. Yet our current expenditure is just 3.8 per cent of the GDP.

Two of the Kothari Commission's projections (population figures and GDP growth rate) have been shown to be inaccurate. Therefore, we actually require more than what it promised. Should education be accorded priority?

Let's take a look around. India and countries in the Far East started out at par.

Yet, they are way ahead primarily because they prioritised this sector.

And in another developing country — Mexico, the President, Carlos Salias de Gortari, raised the education budget to 86 per cent in real terms, with elementary education getting the lion's share.

Many will ask, how will the goods be delivered? Increasing the tax-GDP ratio is one way.

The Tapas Mazumdar Committee showed that through proper tax reforms the ratio could be steadily increased to the peak levels of 17.10 per cent in 1987 and beyond.

Non-tax revenues (sitting at around 2.9 per cent of GDP) could be simultaneously increased to 4.5-5 per cent of GDP. releasing money not only for UEE but for other sectors of education as well.

The Budget is upon us.

Will Yashwant Sinha spend a moment with Robert Frost to read the lines: "But I have promises to keep."

The writer is National Convenor, National Alliance for Fundamental Right to Education (NAFRE).

Picture by Sarvesh

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