Unit
VII Educational planning and financing
Five
year plans: Educational policy making and budgeting - Funding systems of
education: Public, fees, students’ loans, education chess and external aids.
Planning is the process of preparing a
set of decisions for action during a specific period of time to achieve a set
of goals. Educational planning can be defined as ‘the process of setting out in
advance, strategies, policies, procedures, programmes and standards through
which an educational objective can be achieved”
Need for Educational Planning
Educational
planning is needed to tone up the administrative machinery, to improve the
infrastructure facilities of educational institutions, to increase teacher
efficiency and involve the public in the development of education. The
need for educational planning entails the following:
·
Planning is necessary for
administrative decisions in education, for it aims at putting into action what
educators deems to achieve.
·
Planning enables a nation to make
its choices clear in terms of the aim and objectives.
·
Educational plans are designed to
avoid in balances and enormous wastes
Significance
of Educational Planning
·
Proper educational
planning saves time, effort and money
·
Educational planning is
essential for the best utilization of available resources.
·
It checks wastage and
failure and contributes to the ease and efficiency of the administrative
process in the field of education.
·
Planning in education
is necessary for making one’s educational journey goal-oriented and purposeful.
·
Educational planning is
highly essential for preparing a blueprint or plan of action for every
programme of an educational institution or organisation
·
To bring total development of a
nation in time, in which educational development is one among its various
aspects.
·
To reflect the modern developments
like explosion of knowledge, advancement of science and technology, development
of research and innovation
·
Educational planning facilitates
gathering of educational experts, teachers, supervisors and administrators for
taking decision in relation to the realisation of purposes of educational programme.
Educational Financing
Financing
is defined as the act of providing funds for business activities, making
purchases or
investing.
Financial institutions and banks are in the business of financing as they
provide capital to businesses, consumers and investors to help them achieve
their goals. The Education funding comes from many different sources. All
allocation of funds to education should be determined by the educational budget
and improvement of education should be made within the educational financing
The allocation of funds to education
purely from the economic point of view- should be decided by the future needs
of skilled man power in various sectors of national life.
Essential
Principles of Educational Financing
·
Allocation of funds to education
should be determined by the educational budget
·
Improvement of education should be
made within the financial and human resources available in the country.
·
Enhancement of educational
opportunities to all, a large number of scholarships, stipends and free
studentship should be given to the students.
·
Special grants for physical activities,
libraries and reading rooms, expenses on special programmes like mid-day meals
etc., should be given.
·
The allocation of funds should decided by the future needs of skilled man
power in various sectors of national life.
Five
Year Plans: Educational Policy making and Budgeting:
From the commencement of economic
planning in 1951-52, the education sector has remained the priority sector of
the central as well as the state governments. In the first and subsequent five
year plans, the government provided development finance to the States through the
Planning Commission, to meet the capital needs of their education systems. A
brief description of plan priorities with respect to education is as follows:
The
First Five Year Plan (1951-56)
The First Five Year Plan emphasized
universalaization of primary education and strengthening of the secondary
education. It aimed to achieve 40% to 60% enrollment of those aged up to 11
years in 1950. Total planned budget was Rs.2069 crore. It was allotted 16.74%
for Social activities including Education
Five Indian Institute of Technology (IITs) were started as major technical
institutions. The university Grants Commission (UGC)
was set up to take care of funding and take measures to strengthen the higher education in
the country.
Second Five Year Plan (1956-1961)
The Second Five Year Plan laid stress on basic education,
expansion of elementary education, and diversification of secondary education.
The following were the highlights for the Second Five Year Plan:
• Launched
Indian Statistical Institute, Atomic Energy Commission and Tata institute of
fundamental Research
• Allotment
of money for education is 307 crore
• Primary education :89 crore
• Secondary education : 51 crore
•
Higher education: 57 crore
•
Educational technology and vocational education: 48 crore
•
Social education: 5 crore
•
Administration: 57 crore
•
The Tata Institute of Fundamental Research and Atomic Energy Commission of India were established as research institutes.
•
In 1957, a talent
search and scholarship program was begun to find talented young students to
train for work in nuclear power
•
The number of Students Enrolment in Primary
education increased in 264.6 to 406.3
lakhs
•
No.of schools for Primary Education
increased in 278.13 to 342 thousands
Third Five year Plan:
(1961-1966)
•
Allotment of
money for education in third plan was 400 crore
• The Third Five Year Plan envisages increase in the
number of primary schools by 73,000, of middle schools by 18,100 and of high
schools by 5,200.
•
State Secondary
Education Boards were formed.
•
Education Commission (1964-66) was appointed to advice
‘on the national pattern of education and on the general principles for
development of education at all stages and in all respects’.
Plan Holidays (from 1966–69)
The main reason behind
the plan holiday was the Indo-Pakistan war & failure of third plan.
Fourth Five Year Plan: (1969-1974)
At this time Mrs. Indira
Gandhi was the Prime Minister. Incorporating the recommendations of the
Education Commission, the Fourth Five year plan aimed at providing free and
compulsory education up to the age of 14. It was stated that “Facilities for
universal elementary education are pre-requisite for equality of opportunity.” The fourth
plan also focused on for higher education: The highlights of the Fourth
Five Year Plan are as follows:
·
Nationalization of 14 banks
·
Pokran I Nuclear test
·
Allotment of money for education from Central
271, state 499.89 and union territories 51.77crore
·
Importance to Science and technology
·
Focused on In-service training, Curriculum
reform and preparation of books
The Fifth Five Year
Plan (1974 to 1979)
The Fifth Five Year Plan laid emphasis
on ensuring equality of opportunities as part of the overall plan of ensuring
social justice. Following are the Fifth Five Year Plan highlights:
• Allotment
of money for education was 1284.29 crore
• Allotment
of money for Elimentary and Middle school was 742.8 crore
• Focused
on increasing the employment opportunity, eradicating poverty and social
justice
The Sixth Five Year
Plan (1978-83)
The basic objective
of this plan was poverty eradication and technological self reliance. The Sixth Five-Year Plan marked the beginning
of economic liberalization. Following are its highlights:
·
Allotted more money for higher education
·
It was proposed that
universalisation of primary education (for the age group 6-11) would be
achieved by the end of the plan (1985) and universalisation of upper primary
level (11-14) by 1990.
The Seventh Five Year
Plan (1985-90)
Rajiv Gandhi as the prime minister and the plan laid
stress on improving the productivity level of industries by upgrading of
technology.
The main objectives of the Seventh Five-Year Plan were
to establish growth in areas of increasing economic productivity, production of
food grains, and generating employment through “Social Justice”. For the
first time the private sector got the priority over public sector. Its
highlights are
·
Universalaization of
elementary education will continue to be part of the Minimum Needs Programme
·
Special care was taken
to spread education among girls
·
The objective is sought
to be achieved through a combination of formal and non-formal methods, focusing
sharply on the needs of girls and of children belonging to the economically and
socially weaker section
·
The plan was very
successful; the economy recorded 6% growth rate against the targeted 5%.
Annual Plan (1990 –
1992)
The
Eighth Five Year Plan (1992-97):
In this plan the top priority was given
to development of the human resources i.e. employment, education, and public
health. During this plan Narasimha Rao Govt. launched New Economic Policy of
India. It was the beginning
of liberalization, Privatization and Globalization (LPG) in India. The
following were the highlights of the Eighth Five Year Plan on Education:
·
Universalaization of
elementary education,
·
Eradication of
illiteracy in the age group of 15 to 35
·
Strengthening of
vocational education
·
Focused on girl’s
education and women's literacy which has a beneficial impact on children’s
literacy as well as other national objectives like population control and
family welfare.
·
Special attention was
paid to increase retention, improvement of quality, specification of minimum
levels of learning (MLL) and their attainment by the learners.
The
Ninth Five Year Plan (1997-2002):
The Ninth Five-Year Plan came
after 50 years of Indian Independence. Atal Bihari Vajpayee was the
prime minister of India during the Ninth Plan. Special Action Plans (SAPs) were
evolved during the Ninth Plan to fulfill targets within the stipulated time
with adequate resources. The SAPs covered the areas of social infrastructure,
agriculture, information technology and Water policy. Following are its
highlights:
·
Primary education was a
major thrust area during the 9th Plan. It was estimated that there
would be an additional enrolment of 2.5 crore children at the lower primary
stage and 1.6 crore children at the upper primary level.
·
It was targeted that
75000 additional rooms /buildings will be constructed at the elementary stage.
·
2, 36,000 teachers will
be appointed additionally at the lower primary level and 1, 75,000 teachers at the upper primary level.
·
There were equity
concerns like low enrolment of girls, educational requirements of special need
groups, like SCs/STs, OBCs, minorities, disabled children, working children,
children from disadvantaged locations like deserts, hilly, coastal and deep
forest areas, children from migratory families etc.
The Tenth Five Year
Plan (2002-2007):
The Tenth Plan targets in respect to elementary
education were:
·
All children in the 6-14 age groups should have access to primary
schools, upper primary schools or their alternatives within a walking distance
of one Km and three Kms. respectively.
·
There should be one upper primary school for every two primary
schools.
·
All schools should have buildings, toilets, drinking water, electricity,
playgrounds, blackboards and other basic facilities.
·
There must be provision of one classroom for every teacher at the
elementary stage.
·
Enrolment of all children in schools or alternative arrangements by 2003
·
All children to complete five years of primary schooling by 2007,
Universal retention in the primary stage by 2007
·
Dropout rate to be reduced to less than 10 percent for grades VI-VIII by
2007.
·
Improve the quality of education in all respects to ensure reasonable
learning outcomes at the elementary level, especially in literacy, numeracy and
in life skills.
·
Bridge all gender and social gaps in enrolment, retention and learning
achievement in the primary stage by 2007 and reduce the gap to 5 percent in the
upper primary stage by 2007.
·
Although the Tenth Five
Year Plan recommended that the outlay by the central government on Sarva Shiksha Abhiyan (SSA)
during 2002-03 to 2006-07 should amount to Rs 17000 crore, it remained short of
funds till 2004-05.
The
Eleventh Five-Year Plan (2007–11):
It was in the period of Manmohan Singh as a
prime minister. Plan focuses on education with objectives of reduce dropout
rates and develops minimum standards of educational attainment in elementary
school, and by regular testing monitor effectiveness of education to ensure
quality, increase literacy rate. Highlights of this
plan are as follows:
·
It aimed to increase the enrolment in
higher education of 18–23 years of age group by 2011–12.
·
It focused on distant education,
convergence of formal, non-formal, distant and IT education institutions.
·
Rapid and inclusive growth (poverty
reduction).
·
Emphasis on social sector and delivery
of service therein.
·
Empowerment through education and skill
development.
·
Reduction of gender inequality.
·
Environmental sustainability.
Twelfth
Five Year Plan (2012-17):
Twelfth
five year plan focuses on universalaization of elementary educations.
The twelfth five year
plan has total gross budgetary support of Rs 3,43,028 crores to school education and literacy, out
of this, share for SSA is Rs.
1,92,726 crores, for MDM, Rs. 90,155
crores, for RMSA Rs. 27,466 crores and for other components is Rs. 32,681
crores.
The
objectives of the Twelfth Five-Year Plan were:
·
To create 50 million new work
opportunities in the non farm sector.
·
To remove gender and social gap in
school enrolment.
·
To enhance access to higher education.
·
To reduce malnutrition among children
aged 0–3 years.
·
Integration of pre-school education into
schooling especially in the government schools. Funding for pre-school children
under ECCE,
·
Stepping up provision of infrastructure
through convergence with schemes strengthening of monitoring and evaluation
mechanism
Funding
systems of education:
Sources of Fund for
Education in India categorize as External Internal Sources, Public Private Fees,
Endowment Donation and funds from Central Government, State Government,
District administration, Municipalities and Panjayath
The
Funding systems of education in India is coming under Public Funding, funds
from fees, students’ loans, education chess and external aids.
i.
Public
Funding:
Funds for education
were distributed from Central Government, State Government, District
administration, Municipalities and
Panjayath through Finance Commission on the basis of the allotment by the
Planning Commission
Planning
Commission
Planning Commission was
established during 1950 when the Five-Year Planning Process was launched. All
Plans are discussed and finalized by it. The Level of plan expenditure by state
and central govt. is determined by it. The Programme and their goals to be
realized
Finance
Commission
The
Finance Commission takes care of the transfer of non-plan resources between the
centre and states. The Finance Commission in India is a statutory body
appointed by the President of India once every five years. It makes its
recommendation on the distribution of resources
Procedure for Fund Allocation
The
Finance Commission receives detailed statements from the states of their
requirements for each head of account including the details of receipts and
expenditures. The Finance Commission, in its turn, reassesses these state
forecasts and recommendations for an allocation of resources to be made.
ii. II. Fees: Student fee is
a fee charged
to students at a school, college, university or other place of learning. It may
be charged to support student organization or activities or for intercollegiate programs
such as intramural sports or visiting academics. Fees may collected as a means to
remedy shortfalls in state funding. At Public University or college, further
fees may be charged for features and facilities such as insurance, health and
parking provision.
iii.
Students’
loans: An education loan covers the basic
course fee and other related expenses such as college accommodation, exam and
other miscellaneous charges. Presently, the banks do not ask for any collateral
or third-party guarantee for loan up to Rs 4 lakh. For loans above Rs 4 lakh up
to Rs 7.5 lakh, a third-party guarantee is required. Collateral is asked for
loan exceeding Rs 7.5 lakh. Once the loan application is accepted, the banks
disburse the amount directly to the college/university as per the given fees
structure.
Interest rate: The
banks uses the Marginal Cost of Funds based Lending Rate (MCLR), plus an
additional spread to set an interest rate. Presently (in 2017), the additional
spread is in the 1.35-% range.
Repayment: The
loan is repaid by the student. Generally, the repayment starts when the course
is completed. Some banks even provide a relaxation period of 6 months after
securing a job or a year after the completion of studies for repayment. The
repayment period is generally between 5 and 7 years, but can be extended beyond
that as well. During the course period, the bank charges simple interest rate
on the loan. The Ministry of Human Resource Development implements Central
Scheme of Interest Subsidy for Education Loans (CSIS)
Vidya Lakshmi: Vidya Lakshmi is a portal for
students seeking Education Loan. This portal has been developed under the
guidance of Department of Financial Services, Department of Higher Education
and Indian Banks Association. Students can view, apply and track the education
loan applications to banks anytime, anywhere by accessing the portal.
iv.
External
Aids: At the request of the Indian government, the World Bank has
announced plans to increase its support to India. The bank’s programming will
focus on expanding access to education, health care and other basic services.
Apart from world bank, India also got financial aid from Japan,
Germany, Asian Development Bank, United Kingdom, France, United States and European Union
