2018

## Demand For Grants 2018-19 Analysis Human Resource Development

The Ministry of Human Resource Development 
consists of two departments: (i) school education 
and literacy, and (ii) higher education.  In 2018-19, 
the Ministry has been allocated Rs 85,010 crore, 
the fifth highest allocation among all Ministries.  
The allocation constitutes 3% of the central 
government's estimated expenditure for 2018-19.   
This note presents the trends in expenditure, and 
discusses some of the issues related to the 
education sector.  

The Department of School Education and 
Literacy under the Ministry is broadly responsible 
for education imparted between the ages of 6 to 18 
years, i.e., school education.   

 
Elementary education is a fundamental right imparted up to class 8 for children between 6- 14 years of age.  The government is mandated to provide elementary education to all children under the Right to Education (RTE) Act, 2009.   
 
Secondary education is imparted between classes 9 to 12 for children between 14-18 years of age.   
In 2018-19, the Department has been allocated Rs 50,000 crore, accounting for 59% of the Ministry's total allocation.   
The **Department of Higher Education** is responsible for higher and technical education, and training for students over 18 years of age.   

 
Higher education includes undergraduate and postgraduate courses, doctoral degrees, and certificates following the completion of 12 
years of schooling or equivalent.    
In 2018-19, the Department has been allocated Rs 35,010 crore, accounting for 41% of the Ministry's total allocation.   

## Overview Of Finances Budget Estimates 2018-19

The Ministry has been allocated Rs 85,010 crore in 2018-19.  This is a 3.8% increase over the revised estimate of 2017-18.1   

Expenditure on education by the centre and the 
states as a proportion of the Gross Domestic 
Product (GDP) has been around 2% between 2014-
15 and 2017-18.2  Further, the expenditure on 
education (centre and states) as a percentage of the 
overall expenditure has been between 9% to 10%.2  
The Committee constituted to examine the New 

Nivedita Rao 
nivedita@prsindia.org 
                            
                                                                                   February 26, 2018 

PRS Legislative Research  Institute for Policy Research Studies  

3rd Floor, Gandharva Mahavidyalaya  212, Deen Dayal Upadhyaya Marg  New Delhi - 110002 

Tel: (011) 2323 4801-02, 4343 4035-36 

www.prsindia.org 

Education Policy has proposed 6% of GDP as the minimum expenditure on education.3 Table 1 provides the budget related figures for the Ministry.  For further details on the budgetary allocations, refer to the Annexure. 

% 
Department 
Actuals 
2016-
RE 
2017-
BE 
2018-
17 
18 
19 
change 
(RE to 
BE) 
42,989 
47,006 
50,000 
6.4% 
School Education & Literacy Higher Education 
29,026 
34,862 
35,010 
0.4% 
Total 
72,016 
81,869 
85,010 
3.8% 

Note: BE - Budget Estimate; RE - Revised Estimates. Sources: Expenditure Budget, Vol. 2, Ministry of Human Resource Development, 2018-19; PRS. 

Figure 1 depicts the major heads under which the 
Ministry spends its funds (as a percentage of its 
total allocation).  The Department of School 
Education and Literacy has seen a 6.4% increase in 
its allocation (Rs 50,000 crore) over the revised 
estimates of 2017-18 (Rs 47,006 crore).  For the 
Department of Higher Education, it was a 0.4% 
increase at Rs 35,010 crore over the revised 
estimate (Rs 34,862 crore). 

Note: The category 'Others' includes other schemes and 
programmes under the Ministry which have an allocation of less 
than 5% of the total expenditure.  
Sources: Expenditure Budget, Vol. 2, Ministry of Human 
Resource Development, 2018-19; PRS. 

## Budget Speech Highlights 2018-19

 
An integrated B.Ed. programme for teachers. Technology will also be used to upgrade the skills of teachers through the recently launched digital portal ''DIKSHA''. 
 
Increase in the digital intensity in education and moving gradually from ''black board'' to ''digital board''.  
 
By the year 2022, every block with more than 50% ST population and at least 20,000 tribal persons, will have an Ekalavya Model Residential School. Ekalavya schools will be on par with Navodaya Vidyalayas.  They will have facilities for preserving local art and culture, and providing training in sports and skill development. 
 
Launch of ''Revitalising Infrastructure and Systems in Education (RISE) by 2022'' to increase investments in research and related infrastructure in premier educational institutions.  It will have an investment of Rs 1,00,000 crore in the next four years. Higher Education Financing Agency (HEFA) would be structured for funding this initiative. 
 
Two new Schools of Planning and Architecture, to be selected on challenge mode.  Additionally, 18 new Schools of Planning and Architecture will be established in IITs and NITs as autonomous schools. 
 
Prime Minister's Research Fellows Scheme to identify 1,000 best B.Tech students each year from premier institutions and provide them facilities to do 
Ph.D in IITs and IISc. 

## Department Of School Education And Literacy

In 2018-19, the Department of School Education and Literacy has been allocated Rs 50,000 crore, a 6.4% increase over the revised estimates of 2017- 18.1   In 2017-18, the Department spent Rs 650 
crore over the budgeted amount (Rs 46,356 crore). Figure 2 shows the allocation of the Department of School Education and Literacy over the past 10 years (2008-18). In the past 10 years, the highest allocation was given in 2014-15 at Rs 55,115 crore.  Note that in 2015-16, the allocation was reduced by 25%.  This may be on account of a greater devolution of funds to the states in pursuance of the recommendations of the 14th Finance Commission.  The allocation has been on an upwards trajectory since then but this year the annual increase in allocation has fallen in comparison to the last two years.  The Compound Annual Growth Rate (CAGR) following the 14th Finance Commission until now has been 4%.  CAGR is the annual growth rate over a certain period of time. 

 
Note: Revised estimates have been used for 2017-18 and budget estimates for 2018-19. Sources: Union Budgets, 2008-18; PRS. 

Figure 3 provides the major heads of financial 
allocation under this Department for 2018-19.  In 
2018-19, expenditure on centrally sponsored 
schemes (Sarva Shiksha Abhiyan (SSA), Mid-Day 
Meal Programme in Schools (MDMS), and 
Rashtriya Madhyamik Shiksha Abhiyan (RMSA)) 
constitute 81% of the estimated spending of the 
Department of School Education and Literacy.  
Note that the programmes of SSA and MDMS 
focus on school education while RMSA focusses 
on secondary education. 

 
Sources: Expenditure Budget, Ministry of Human Resource Development, Union Budget, 2018-19; PRS. 

Table 2 indicates the actual allocation of the 
Department compared with the budget estimates of 
that year.  The utilisation in the last three years has 
been over 98% of the budget estimates as seen in 
the Table.  

the actual expenditure  (2010-17) (in Rs crore) 
Year 
Budget 
estimate 
Actuals 
Actuals/BE (%) 
2010-11 
33,214 
36,433 
110% 
2011-12 
41,451 
40,641 
98% 
2012-13 
48,781 
45,631 
94% 
2013-14 
52,701 
46,856 
89% 
2014-15 
55,115 
45,722 
83% 
2015-16 
42,220 
41,800 
99% 
2016-17 
43,554 
42,989 
99% 
2017-18 
46,356 
47,006* 
101% 

Note: BE - Budget Estimate. *Revised Estimate Sources: Union Budgets, 2015-18; PRS. 

Education and Literacy in 2018-19 (in Rs crore) 
% 
RE 
2017-
BE 
2018-
Major Head 
Actuals 
2016-17 
18 
19 
change 
(RE to 
BE) 
 21,685  
23,500  
 26,129  
11.2% 
Sarva Shiksha Abhiyan 
 9,475  
10,000  
 10,500  
5.0% 
National Programme of Mid-Day Meal in Schools Autonomous bodies 
 6,902  
 7,952  
 7,548  
-5.1% 
 3,698  
 3,915  
 4,213  
7.6% 
Rashtriya Madhyamik Shiksha Abhiyan 
 817  
 841  
 871  
3.6% 
Teachers Training and Adult Education Scholarships 
 84  
 602  
 556  
-7.7% 
Others 
328 
196 
183 
-6.4% 
Total 
42,989 
47,006 
50,000 
6.4% 

Note: BE - Budget Estimate; RE - Revised Estimates. Sources: Expenditure Budget, Ministry of Human Resource Development, Union Budget 2018-19; PRS.  

 
Sarva Shiksha Abhiyan (SSA):  Allocation to 
SSA in 2018-19 has increased by 11.2% (as compared with revised estimates of 2017-18) to Rs 26,129 crore.  SSA has been implemented since 2000 to universalise elementary education and promote retention of children in the school system.  After the RTE Act, 2009 was enacted, SSA was subsumed 

under it.  RTE guarantees the right to free and 
compulsory elementary education for children 
between the ages of 6 and14 years in a 
neighbourhood school.4  

There exists gaps between demand and actual 
allocation for the SSA and RTE.5  For 
example, the allocation of Rs 23,500 crores as 
budget estimate for 2017-18 is against a 
demand of Rs 55,000 crore.6  Further, Standing 
Committees have recommended increased 
funding for the SSA and sufficient allocations 
for states requiring additional resources.7,8  

Further, the Standing Committee on Human 
Resource Development (2017) noted that 
states have not earmarked funds for priority 
areas in education like SSA out of the 
increased fund devolution to states post the 
recommendations of the 14th Finance 
Commission.9  It recommended that the states 
must proportionately adjust the increased 
devolution of funds for education.9 

 
Mid-Day Meal Scheme (MDMS):  
Expenditure on Mid-Day Meal Scheme (MDMS) increased by about 5% from the revised estimates of 2017-18.  The MDMS targets children in the same age group as covered by the SSA (6 to 14 years).  In addition to promoting enrolment, retention and attendance by incentivising the children to come to school for meals, the scheme also aims to improve nutritional levels among children.  It covers children in government and government-aided schools.   

Most states did not follow the central 
government's guidelines on delivering food 
grains at the school.10  There were also 
instances where due to the existence of a long 
supply chain, the supplied food grains got 
adulterated and pilfered.10  

 
Autonomous bodies:  Autonomous bodies 
like the National Council of Educational Research and Training, and Kendriya Vidyalaya Sangathan saw a decrease in their allocation by 5.1% and were allocated Rs 7,548 crore in 2018-19. 
 
Scholarships:  Scholarships saw a decrease of 
7.7% in its allocation in 2018-19.  Note that last year, allocation to scholarships increased by 611% (2017-18) to an allocation of Rs 602 crore from revised estimates of 2016-17.  
 
Rashtriya Madhyamik Shiksha Abhiyan 
(RMSA):  The RMSA is aimed at secondary 
education (classes 9-12).  It aims to enable universal access to secondary education by 2017 and universal retention by 2020.11  It has been recommended that RMSA should be in step with SSA and ensure 100% transition of 

every child from the upper primary to 
secondary stage. 12  Note that under RMSA, 
during 2015-16, an amount of Rs 3,562 crore 
out of a budgeted amount of Rs 3,565 crore 
was utilised, which implies an almost 
complete utilisation.  Table 4 captures the 
expenditure for SSA and RMSA.  The 
difference in the amount of funds being spent 
on elementary education (class 1-8) and 
secondary education (class 9-12) is evident. 

Further, the Standing Committee on Human 
Resource Development noted that the varying 
regional attendance levels at the secondary 
education level reflects a regional imbalance in 
the coverage of RMSA.6 

 
SSA 
RMSA 
2014-15 
 
 
Expenditure* 
41,910 
5,407 
2015-16 
 
 
Expenditure* 
44,227 
6,879 
2016-17 
 
 
Expenditure* 
48,858 
7,713 

Source:  Starred Question no.115, Ministry of Human Resource Development, Rajya Sabha, Answered on December 28, 2017; PRS. * : Expenditure shown above is against receipts from central release, state share release, and unspent balance of previous year, if any. 

Issues in school education 

## Enrolment, Transition And Dropout Rates

Enrolment:  The Gross Enrolment Ratio (GER) is the student enrolment as a proportion of the corresponding eligible age group in a given year.  
GER in classes 1-5 reduced from 114% in 2008-09 
to 100% in 2014-15.  The above-100% enrolment rate in 2008-09 indicates that students enrolled in classes 1-5 included those younger than six or older than 10 years.  In 2014-15, enrolment in classes 1-5 was about 100%, which signals a more age appropriate (six to 10 years) class composition (see Figure 4).  
Sources:  Education statistics at a glance, Ministry of Human Resource Development, 2016; PRS. 

India's enrolment rate in primary education (class 
1-5) is comparable to that of developed countries.  
However, it falls behind these countries after class 
6 (see Figure 5). 

Between 2008-09 and 2014-15, the proportion of 
students enrolled in class 1-8 in government 
schools declined from 71% to 62%, implying an 
increasing preference for private schools.13   

 
Sources:  Education statistics at a glance, Ministry of Human Resource Development, 2016; PRS. 

Attendance:  Attendance is the ratio of the 
number of persons in the official age group 
attending a particular class-group to the total 
number persons enrolled in school in that age-
group.  The attendance for both boys and girls falls 
as the level of education rises in school education.  
There is hardly any difference between the 
attendance of boys and girls (see Figure 6). 

Sources:  Key Indicators of Social Consumption in India: Education, NSSO, 2014; PRS. 

Transition and dropouts: The dropout rate peaks 
at the secondary level (class 9-10) at 17% as 
compared to 4% in elementary school (class 1-8) 
and 2% in upper secondary school (class 11-12) 
(see Figure 7).  This is also reflected in the 
transition rates in school education where the 
lowest transition rate is at the secondary level 

(class 10 to 11) at 69%.   Note that a transition rate below 100% indicates that the students are held back or have dropped out of school.   
Under the RTE Act, a child cannot be expelled or detained until the completion of elementary education (until class 8).  This may explain the differential trends between the enrolment, dropout, and transition rates for elementary education and secondary education.  Further, with regard to access to secondary school, for every three upper primary schools there is one secondary school.14 According to RMSA statistics, four states where the ratio of upper primary school to secondary school is a cause of concern are Uttar Pradesh, Bihar, Jharkhand and Meghalaya.14 Further, while 73% allocation of the Department on School Education has been made on SSA and MDMS (focussed on elementary education), only 8% has been allocated to RMSA (focussed on secondary education). According to NSSO data (71st round) on reasons for dropping out (for the age group 5-29 years), the key reasons for females dropping out is to engage in domestic activities (30%), lack of interest in education (16%), and marriage (14%).   On the other hand, the key reasons for males dropping out is to engage in economic activities (31%), lack of interest in education (24%), and financial constraints (24%).13 

## Quality Of Learning

Elementary education:  Based on the high enrolment and low dropout rates in elementary education, it can be inferred that children are being retained in schools for longer.  However, there have been some adverse observations regarding the learning outcomes of such children.  The Central Advisory Board on Education (CABE, 2014), National Achievement Survey (2012), and the Economic Survey (2016-17) observed declining learning levels in elementary education even after the implementation of the RTE Act. 15,16,17   
As per the National Achievement Survey, the performance of students in 2015 was poorer than in 2012.  In 2015, on average, Class 5 students in 34 

states/ UTs obtained 45%  marks in reading 
comprehension, and 46% in mathematics.18  For 
reading comprehension, 19 states have scores in 
2015 that are lower than the scores in 2012.  Only 
in two UTs, the average achievement scores in 
2015 were significantly above those of 2012 (see 
Annexure).   

For mathematics, 20 states have scores in 2015 that 
are lower than 2012.  Only in 3 states/UTs, the 
average achievement scores in 2015 were 
significantly above those of 2012 (for more details, 
see Annexure). 

## Reconsidering The No Detention Policy

In recent years, two expert committees reviewed the nodetention provision in the RTE Act and recommended it be removed or be discontinued in a phased manner.15,3    The RTE (Second Amendment) Bill, 2017 was introduced in Lok Sabha on August 11, 2017 to amend the RTE Act to remove the provision related to no- detention in the Act to address the low learning outcomes.  It is currently pending in Parliament. The RTE Act, 2009 prohibits detention of children till they 

Under the RTE Act, children are enrolled in the 
class that corresponds to their age, irrespective of 
their learning levels.  This results in a situation 
where in the same class, depending on when they 
are enrolled in school, children may have different 
learning requirements.  It has been recommended 
that special training be organised and is of flexible 
duration to enable the child to be at par with other 
children and ensure his integration with the class.19  

Secondary education:  In the National 
Achievement Survey (2015) for class 10, in the 
English subject, 24% students were in the range of 
0-35% score and 61% students were in the range of 
36-50% score.  Further, 35% students were in 0-
35% scores, 49% students were in the range of 36-
50% scores in Mathematics.20 

## Other Issues

Teachers related issues:  Experts have identified 
various issues with regard to the role of teachers to 
address the challenges confronting elementary 
education.21,19,3  These include: (i) low teacher 
accountability and appraisal, (ii) poor quality of the 
content of teacher-education and changes required 
in the curriculum of B. Ed and D. Ed courses, (iii) 
need for continuous in-service teacher training and 
upgradation of skill set, (iv) inadequate pupil 
teacher ratio and deployment of teachers for non-

educational purposes, (v) teacher vacancies, and (vi) excessive recruitment of contract/para teachers. Some states have done exceedingly well in maintaining its teachers' workforce, some states like Bihar, Uttar Pradesh, Jharkhand, Punjab, Assam are lagging behind.22 In 2016, 3,48,314 posts of teachers were vacant under the SSA and 1,06,906 posts under RMSA.23,9 Further, it has been observed that there are 13,64,553 untrained in-service teachers.24  Teacher training institutes such as DIETs are also experiencing many teacher vacancies.25  The presence of para/temporary teachers instead of permanent teachers contributes to the deterioration of quality of education.  The CABE Committee (2005) recommended that to ensure quality secondary education, para/temporary teachers must be done away with.  Instead, fully qualified teachers with a complete salary and benefits must be hired.26  

## Teacher Related Bills

 
The National Council for Teacher Education (Amendment) Bill, 2017:  The Bill is currently pending in Parliament.  It amends the National Council for Teacher Education Act, 1993.  The Act establishes the National Council for Teacher Education (NCTE).  The NCTE plans and co-ordinates the development of the teacher education system throughout the country. The Bill seeks to grant retrospective recognition of certain teacher education institutions and permission to start new courses. 
 
The Right of Children to Free and Compulsory Education (Amendment) Bill, 2017:  The Bill was passed by Parliament in 2017.  It amends the RTE Act, 2009 by extending the deadline for teachers to acquire the prescribed minimum qualifications for appointment.  Those teachers who do not possess the minimum qualifications as on March 31, 2015 will acquire the minimum qualifications within a period of four years i.e. by March 31, 2019. 
School accountability:  In 2014, CABE 
recommended introducing a performance management system for all teachers, school leaders, and department officials, with performance measures linked with student learning outcomes.15 Such measures of school accountability exist in other countries. For example, in the United States, under the No Child Left Behind Act, schools are required to do annual assessment of learning outcomes in reading and mathematics for students from classes 3 to 8.  If the school fails to achieve minimum test scores then the consequences include removal from service of teachers or the headmaster, school restructuring or closure, and an option for students to transfer to another school.27  
Nature of assessment:  Under the RTE Act, the Continuous and Comprehensive Evaluation (CCE) is the evaluation mechanism for elementary 

education.  CCE (e.g., paper-pencil test, drawing 
and reading pictures, and expressing orally) does 
not mean absence of evaluation, but it means an 
evaluation of a different kind from the traditional 
system of examinations.  CCE has not been 
adequately implemented or monitored.15  It has 
been recommended that proper design of 
assessment and using this information can help 
improve the quality and innovation in terms of 
teaching and learning.28 
 

## Department Of Higher Education

The Department of Higher Education has been 
allocated Rs 35,010 crore in 2018-19, a 0.4% 
increase over the revised estimate of 2017-19.  This 
is an increase of Rs 148 crore over the revised 
estimates of 2017-18.  Figure 8 depicts the 
allocation to the Department of Higher Education 
since 2007-08.  In terms of year on year increase, 
2015-16 saw the highest dip in the allocation to the 
Department of Higher Education.  This may be on 
account of a greater devolution of funds to the 
states in 2015-16 in pursuance of the 
recommendations of the 14th Finance Commission.   

 
Note: Revised estimates have been used for 2017-18 and budget estimates for 2018-19. Sources: Union Budgets, 2006-18; PRS. 

A NITI Aayog report (2017) notes that even after 
the central transfers, low income states with low 
revenue capacity spend significant lower amounts 
on social and economic services.29    It also 
observed that as a result, despite such transfers, 
public expenditures in sectors like education are 
higher in more developed states.       

Table 5 indicates the actual allocation of the 
Department compared to the budget estimates of 
that year.  The utilisation has been over 90% of the 
budget estimates in the last three years as seen in 

the table.  In 2016-17 and 2017-18, it even crossed 100% utilisation.  

Table 5: Comparison of budget estimates and the actual expenditure (2010-17) (in Rs crore) 
Year 
Budget 
Estimate 
Actuals 
Actuals/BE (%) 
2010-11 
16,690 
15,472 
93% 
2011-12 
21,912 
19,505 
89% 
2012-13 
25,275 
20,423 
81% 
2013-14 
26,750 
24,465 
91% 
2014-15 
27,656 
23,152 
84% 
2015-16 
26,855 
25,439 
95% 
2016-17 
28,840 
29,026 
101% 
2017-18 
33,330 
34,862* 
105% 

Note: BE - Budget Estimate. *Revised Estimate Sources: Union Budgets, 2010-18; PRS. 

Figure 9 provides the major heads of financial allocation under the Department for 2018-19. 

 
About 51% of the Department's expenditure 
has been allocated to central universities (as grants), Indian Institutes of Technology (IITs), and statutory and regulatory bodies (University Grants Commission (UGC) and All India Council for Technical Education (AICTE)) (see Table 6).  All the three categories have however registered a decrease in their allocation over the revised estimates of 2017- 18 by 11%, 23%, and 4% respectively.  In 2018-19, they have been allocated Rs 6,445 crore, Rs 6,326 crore, and Rs 5,208 crore respectively. 
 
The bulk of the enrolment in higher education is handled by state universities and their affiliated colleges.  However, these state universities receive very small amounts of 
grants from the Union Budget.  Nearly 65% of 
the University Grants Commission (UGC) budget is utilised by the central universities and their colleges while state universities and their affiliated colleges get only the remaining 35%.30   The Standing Committee on Human Resource Development has recommended that the mobilisation of funds in state universities should be explored through other means such as endowments, contributions from industry, alumni, etc.30 

% 
2016-
Major Heads 
17 
2017-
18 RE 
2018-
19 BE 
Actuals 
change 
(RE to 
BE) 
Grants to Central Universities 
6,356 
7,261 
6,445 
-11.2% 
IITs 
5,380 
8,245 
6,326 
-23.3% 
UGC and AICTE 
4,952 
5,408 
5,208 
-4% 
NITs 
2,860 
3,668 
3,203 
-12.7% 
- 
250 
2,750 
 
1000% 
Higher Education Financing Agency (HEFA) Student Financial Aid 
2,090 
2,244 
2,600 
15.9% 
RUSA 
1,416 
1,300 
1,400 
7.7% 
IIMs 
723 
1,068 
1,036 
-3% 
IISERs 
1,199 
715 
689 
-3.6% 
Digital India-e-learning 
452 
518 
456 
-12% 
IIITs 
176 
369 
364 
-1.5% 
Research and Innovation 
215 
319 
350 
9.7% 
Others 
3,208 
3,496 
4,182 
20% 
Grand Total 
29,026 
34,862 
35,010 
0.4% 

Sources: Expenditure Budget, Vol. 2, Ministry of Human Resource Development, Union Budget 2018-19; PRS.  

 
Student Financial Aid has seen an increase and has been allocated Rs 2,600 crore, a 16% increase over the revised estimates of 2017-18. Research and Innovation have received an increase in allocation by about 10% (over revised estimates) at Rs 350 crore. 
 
Expenditure on Digital India e-learning has been estimated at Rs 456 crore, which is down by 12% from the revised estimates of 2017-18. Note that it had seen a decline in 2017-18 of 3.8% over the revised estimates of 2016-17. 
 
The funding allocation for Rashtriya Uchchtar Shiksha Abhiyan (RUSA) has increased by 8% at Rs 1,400 crore (from the 2017-8 revised estimates).  Note that about Rs 116 crore was underspent as per the revised estimates for 2017-18 following the budget estimates.  As of September, 2017, about 46% of the total 
central share was released and 24.7 % of the released fund was utilised.31 

 
The Higher Education Financing Agency (HEFA) has been allocated Rs 2,750 crore for 
2018-19 after an initial allocation of Rs 250 
crore in 2017-18.  HEFA will promote the creation of high quality infrastructure in premier educational institutions.  All the centrally funded higher educational institutions would be eligible for joining as members of the HEFA.32  Note that it was envisaged that HEFA will be jointly promoted by an identified promoter and the Ministry of Human Resource Development with an authorised capital of Rs 2,000 crore.  The government equity will be Rs 1,000 crore.  The HEFA will be formed as a Special Purpose Vehicle within a public sector bank or a nonbanking financial company.   
Expenditure on education as a proportion of GDP has been around 3 per cent during the period 2008- 09 to 2014-15.33  Out of this figure, roughly 1% is spent on higher education in India.  However, there is a lack of data available on private sector spending in this sector.  Internationally in terms of public expenditure, USA spends about 1% of its GDP on higher education, Canada spends 1.3%, Chile spends 1% and Brazil spends 0.9%.34 There has been underutilisation of funds by central and state universities, including unspent balances lying with central universities.5  Committees have stressed on the need to curb delays on the part of the UGC and the MHRD in disbursing budgetary allocations to the various universities.35 Committees have noted that such a consistent trend of unspent balances is leading to lower allocations against the MHRD's demands for funds, resulting in a 'vicious circle'.36  For example, Rs 689 crore was left unspent with the autonomous bodies which got one of the highest allocations under higher education in 2016.37  This leads to a significant gap between the proposed demand and the allocation of budget to MHRD as well.38   

## Issues In The Higher Education Sector Enrolment Levels

In India, GER in higher education has more than doubled over a period of 11 years, going from 9% in 2002-03 to 24.5% in 2015-16 (see Figure 10).39,40   

A GER of 24.5% implies that 24.5% of people 
in the target age-group are enrolled in 
universities.  The GER for higher education in 
India is fairly low compared to other countries 
such as the UK and USA, as seen in Figure 11.   

Sources:  Education statistics at a glance, Ministry of Human Resource Development, 2016; PRS. 

Student enrolment is highest at the UG level 
(79.3%) followed by PG (11.3%).  The recent 
AISHE 2015-16 report reveals that the student 
enrolment decreases as one goes further higher 
from the under graduate level of education.40   

## Regulatory Issues In Higher Education

It has been observed that the Indian higher 
education is regulated by a multiplicity of 
regulatory agencies, with overlapping mandates.41  
These bodies are the University Grants 
Commission (UGC), All India Council for 
Technical Education (AICTE) and the various 
professional councils.  Citing overregulation and 
under governance, various committees have 
highlighted the need for an overarching regulatory 
body by subsuming the multiple existing regulatory 
bodies.41,42  Such a body would be responsible for 
monitoring standards and licensing accreditation 
bodies in the sector. 

The TSR Subramanian Committee report (2016) on 
the New Education Policy also recommended 
bringing in the National Higher Education 
Promotion and Management Act which would 
replace the existing separate laws governing 
individual regulators in higher education.3  In the 
Union Budget of 2017-18, the Finance Minister 
mentioned that reforms would be undertaken 
concerning the functioning of UGC.43 

## Autonomy In Higher Education

The Indian Institutes of Management Bill, 2017 was passed on December 19, 2017 by Parliament.  Under the Bill, the autonomy being granted to the IIMs is greater than the autonomy available to institutions like IITs, AIIMS and Delhi University.  The role of the central government or the regulator in these other institutions is greater than what has been envisaged under the Bill.  This implies unequal levels of autonomy across different institutions of higher education in areas including introduction of new courses and the Director's pay.  Recent media reports have quoted the Union Minister of Human Resource Development, Mr. Prakash Javadekar saying that IIMs have been accorded full autonomy and this will be done for IITs too as well as colleges.44 In February 2018, the University Grants Commission (UGC) (Categorisation of Universities (only) for Grant of Graded Autonomy) Regulations were released.45  The UGC will categorise universities into three categories based on various parameters.  Depending on the category of the university, there would be a certain extent of autonomy for the universities on aspects including: (i) starting a new course, (ii) opening constituent units/off-campus centres, (iii) hiring foreign faculty, and (iv) admitting foreign students. 

## Quality Standards In Higher Education

There are two accrediting institutions in higher 
education– namely National Board of Accreditation 
(NBA) established by AICTE, and the National 
Assessment and Accreditation Council (NAAC) 
established by UGC.  In terms of the quality of 
universities, out of 323 universities accredited by 
the NAAC in the most recent cycle, only 23 
universities have been given an 'A+' grade.46 

The Standing Committee (2016) notes that 
accreditation of higher educational institutions 
needs to be at core of the regulatory arrangement in 
higher education.30  Further, quality assurance 
agencies should guarantee basic minimum 
standards of technical education to meet the 
industry demand for quality manpower.  Credit 
rating agencies, reputed industry associations, 
media houses and professional bodies should be 
encouraged to carry forward the process of rating 
of Indian universities and institutions.   

## Lack Of Employable Skills

Lack of employable skills in students of technical 
education has been observed by the Standing 
Committee.30  Identification of skill gaps in 
different sectors and offering courses for enhancing 
employability in them has been recommended.  

Some strategies in this regard can include: (i) 
Industry Institute Student Training Support, (ii) 
Industrial Challenge Open Forum, (iii) Long Term 
Student Industry Placement Scheme, and (iv) 
Industrial Finishing Schools.30 

## Fee Structure And Private Sector Participation In Higher Education

It has been observed that many private institutions 
of higher education charge exorbitant fees.  In the 
absence of well-defined norms, fees charged by 
such universities have remained high.47  UGC 
regulates fees for courses offered in deemed 
universities, to an extent.  They state that the fees 
charged shall be directly linked to the cost of 
running the course and the institution shall ensure 
non-commercialisation of education.  In 2002, the 
Supreme Court ruled that the fees charged by 
private unaided educational institutes could be 
regulated.48  Also, while banning capitation fee 
(fees exceeding the tuition fee), it allowed institutes 
to charge a reasonable surplus.  

The All India Council for Technical Education 
(AICTE) had constituted a Committee in 2014 
under Justice Srikrishna to recommend the fee to be 
charged by the private technical educational 
institutes in the country.49  The Committee 
recommended the maximum tuition and 
development fee to be charged. 

A UGC report in 2012 noted that the distribution of 
public and private institutions in India is skewed.  
This is because enrolment in public universities is 
largely concentrated in conventional disciplines 
(arts and sciences) whereas in private institutions, 
more students are enrolled in market-driven 
disciplines (engineering, management, etc.).50 
Thus, with a rise in private universities, there is a 
mismatch of the demand and supply of subject 
disciplines in the private sector education. 

It has been noted that while private investment is 
high in the disciplines of engineering, medicine and 
management; majority of enrolment is still taking 
place in the traditional disciplines like arts.  
However, increasing number of students are opting 
for technical and professional courses, for future 
employability purposes.  Committees have stated 
that the private sector should not confine itself to 
the commercially viable sectors such as 
management, accountancy, medicine, etc., as this 
leads to the responsibility of maximising enrolment 
with the government.41 

Further, committee recommendations have not 
encouraged for-profit private educational 
institutions.41  However, it is essential to stimulate 
private investment in higher education to extend 
educational opportunities and private intervention 
would be key in bridging the gap in investment 
from the government in the education sector.   

## Teacher Related Issues

According to UGC, out of the total teaching posts of 17,006 in various UGC funded Central Universities, 6,141 teaching posts are lying vacant.51  Further, in 20 Indian Institute of Management (IIMs), out of total sanctioned teaching posts of 1,007, 273 posts are lying vacant; and in 7 IISERs and IISc, Bangalore, the total number of sanctioned teaching posts is 1,117 and 153 are lying vacant.52 The Standing Committee on Human Resource Development reasoned that this could be due to two reasons: (i) young students don't find the teaching profession attractive; or (ii) the recruitment process is long and involves too many procedural http://www.nuepa.org/New/download/NEP2016/ReportNEP.pdf . 4  The Right of Children to Free and Compulsory Education (RTE) Act, 2009. 5 "Report no. 280: Demands for Grants 2016-17 (Demand No. 

51) of the Department of School Education & Literacy", Standing Committee on Human Resource Development, April 27, 2016, http://164.100.47.5/newcommittee/reports/EnglishCommittees/C ommittee%20on%20HRD/280.pdf. 6 "Report no. 301: Action taken by the government on the observations /recommendations contained in the two hundred and ninetieth report on the demands for grants (2017-2018) of the Department of School Education and Literacy, Ministry of Human Resource Development", Standing Committee on Human Resource Development, February 9, 2018, http://164.100.47.5/newcommittee/reports/EnglishCommittees/C
ommittee%20on%20HRD/301.pdf. 7  "Report no. 250: Action Taken Report on 244th Report on Demands for Grants 2012-13", Department of School Education and Literacy, Standing Committee on Human Resource Development, February 26, 2013, http://164.100.47.5/newcommittee/reports/EnglishCommittees/C ommittee%20on%20HRD/250.pdf. 8  "Report no. 285: Action Taken Report on 280th Report on Demands for Grants 2016-17", Department of School Education and Literacy, Standing Committee on Human Resource Development, December 16, 2016, http://164.100.47.5/newcommittee/reports/EnglishCommittees/C ommittee%20on%20HRD/285.pdf. 9 "Report no.283: The Implementation of Sarva Shiksha Abhiyan and Mid-Day-Meal Scheme", Standing Committee on Human Resource Development, Rajya Sabha, December 15, 2016, http://164.100.47.5/newcommittee/reports/EnglishCommittees/C ommittee%20on%20HRD/283.pdf. 10 Outcome Budget, 2016-17, Ministry of Human Resource Development, http://mhrd.gov.in/sites/upload_files/mhrd/files/documentreports/Outcome_16-17.pdf 11  Rashtriya Madhyamik Shiksha Abhiyan, Ministry of Human Resource Development, http://rmsaindia.gov.in/en/component/rmsastates/?view=rmsasta tes&Itemid=130&id=india  

formalities.30  In 2008, the Bhargava Committee 
observed that the government determined pay of 
the faculty has been a deterrent in attracting 
adequate faculty at IIMs.53   

The Committee recommended that the recruitment 
process should start well before a post is vacated.53  
In addition, to make the profession of teaching 
more lucrative, faculty should be encouraged to 
undertake consultancy projects and be provided 
financial support for start-ups.  The Standing 
Committee did not consider that raising the age of 
faculty to 65 is a desired and permanent measure 
which will help strengthening the faculty position 
in central universities.31 

12  Fourth Joint Review Mission, Rashtriya Madhyamik Shiksha Abhiyan, 2014, http://mhrd.gov.in/sites/upload_files/mhrd/files/upload_docume nt/4th%20JRM%20AM%202014%2008%2023%20FINAL%20 _2_.pdf. 13 Key Indicators of Social Consumption in India: Education (2014), NSS (71st Round), http://mail.mospi.gov.in/index.php/catalog/160. 14  Trends under RMSA, Rashtriya Madhyamik Shiksha Abhiyan, http://rmsaindia.gov.in/images/Trends_and_Indicators_under_R MSA.pdf 15. "Report of CABE Sub Committee on Assessment on 
implementation of CCE and no detention provision", 2015, 
Ministry of Human Resource Development, http://mhrd.gov.in/sites/upload_files/mhrd/files/d ocument-reports/AssmntCCE.pdf. 16 A summary of India's National Achievement Survey, Class VIII, 2012, National Council of Educational Research and Training, http://mhrd.gov.in/sites/upload_files/mhrd/files/upload_docume nt/11-March-National-Summary-Report-NAS-Class-VIII.pdf. 17  Economic Survey, 2016-17, http://indiabudget.nic.in/es2016- 17/echapter_vol2.pdf. 18  "What students of class V know and can do", National Achievement Survey, Class V (Cycle 4), 2015, 
http://www.ncert.nic.in/departments/nie/esd/pdf/NAS_Class_V_
(Cycle%204)_Summary_Report_National.pdf.  
19 "Report to the People on Education", 2011-12, Ministry of Human Resource Development, http://mhrd.gov.in/sites/upload_files/mhrd/files/documentreports/RPE_2011-12.pdf. 20 National Achievement Survey (2015), Class X, National Council of Educational Research and Training, http://www.ncert.nic.in/departments/nie/esd/pdf/NASSummary. pdf. 21 "Implementation of Right of Children to Free and Compulsory 
Education (RTE) Act, 2009", Comptroller and Auditor General 
of India, July 21, 2017, http://www.cag.gov.in/content/reportno23-2017-compliance-audit-union-governmentimplementation-right-children-free-and. 22 "Report no. 290: Demands for Grants 2017-18 (Demand No. 57) of the Department of School Education & Literacy), Ministry of HRD", Standing Committee on Human Resource Development, March 17, 2017, http://164.100.47.5/newcommittee/reports/EnglishCommittees/C ommittee%20on%20HRD/290.pdf. 23 Unstarred question no. 5879, Ministry of Human Resource Development, Lok Sabha, April 10, 2017, http://164.100.47.190/loksabhaquestions/annex/11/AU5879.pdf. 24 Unstarred question no. 237, Ministry of Human Resource Development, Lok Sabha, December 10, 2017, http://164.100.47.190/loksabhaquestions/annex/13/AU237.pdf. 

31 "Report no. 297: Action taken by the government on the observations/recommendations contained in the two hundred and eighty eighth report on the demands for grants 2017-18 of the Department of Higher Education (Ministry Of Human Resource Development)", Standing Committee on on Human Resource Development, January 5, 2018, http://164.100.47.5/newcommittee/reports/EnglishCommittees/Committee%20on%20HRD/297.pdf. reports/Outcome_16-17.pdf , http://mhrd.gov.in/sites/upload_files/mhrd/files/document-reports/Outcome2016-17.pdf http://aishe.nic.in/aishe/viewDocument.action?documentId=206.  
opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it. 

 

## Union Budget, 2018-19

2018-19 
% Change (RE 
(2017-18) to BE 
Major Heads 
2016-17 
Actuals 
2017-18 BE 
2017-18 
RE 
BE 
% Change 
RE (2017-
18)/Actuals 
(2016-17) 
(2018-19)) 
 
Department of School Education and Literacy 
42,989 
46,356 
47,006 
9.34% 
50,000 
6.4% 
Scholarships 
84 
602 
602 
616.67% 
556 
-7.7% 
Sarva Shiksha Abhiyan 
21,685 
23,500 
23,500 
8.37% 
26,129 
11.2% 
Autonomous bodies 
6,902 
7,302 
7,952 
15.21% 
7,548 
-5.1% 
Rashtriya Madhyamik Shiksha Abhiyan 
3,698 
3,830 
3,915 
5.87% 
4,213 
7.6% 
Teachers Training and Adult Education 
817 
926 
841 
2.94% 
871 
3.6% 
National Programme of Mid Day Meal in Schools 
9,475 
10,000 
10,000 
5.54% 
10,500 
5.0% 
Others 
328 
197 
197 
-39.94% 
184 
-6.4% 
Department of Higher Education 
29,026 
33,330 
34,862 
20.11% 
35,010 
0.4% 
Higher Education Financing Agency (HEFA) 
 
250 
250 
  
2,750 
1000.0% 
Student Financial Aid 
2,090 
2,380 
2,244 
7.37% 
2,600 
15.9% 
Digital India-e-learning 
452 
497 
518 
14.60% 
456 
-12.0% 
Research and Innovation 
215 
315 
319 
48.37% 
350 
9.7% 
Statutory and regulatory bodies (UGC and AICTE) 
4,952 
5,177 
5,408 
9.21% 
5,208 
-3.7% 
Grants to Central Universities 
6,356 
6,486 
7,261 
14.24% 
6,445 
-11.2% 
Indian Institutes of Technology 
5,380 
7,856 
8,245 
53.25% 
6,326 
-23.3% 
Indian Institutes of Management 
723 
1,030 
1,068 
47.72% 
1,036 
-3.0% 
National Institutes of Technology 
2,860 
3,440 
3,668 
28.25% 
3,203 
-12.7% 
Indian Institute of Science, Education and Research (IISERs) 
1,198 
650 
715 
-40.34% 
689 
-3.6% 
Indian Institutes of Information Technology(IIITs) 
176 
379 
369 
109.66% 
364 
-1.5% 
Rashtriya Uchhatar Shiksha Abhiyan (RUSA) 
1,416 
1,300 
1300 
-8.19% 
1400 
7.7% 
Others 
3,208 
3,819 
3,747 
16.80% 
6,933 
85.0% 
Total 
72,016 
79,686 
81,869 
13.68% 
85,010 
3.8% 

Sources:  Demand for Grants, Ministry of Human Resource Development, Union Budget, 2018-19; PRS. 

## Indicators On School And Higher Education

Senior 
Elementary 
Secondary 
State/UT 
Private 
schools 
Secondary 
PTR 
GPI 
Government 
schools (%) 
GER 
GER 
(Secondary) 
(%) 
GER 
Andaman & Nicobar Islands 
16.91 
83.1 
98.82 
86.64 
73.96 
15 
0.95 
Andhra Pradesh 
27.55 
71.61 
93.79 
84.28 
- 
19 
1.03 
Arunachal Pradesh 
12.97 
86.29 
90 
81.64 
78.9 
22 
0.97 
Assam 
13.18 
74.63 
85.92 
66.11 
- 
14 
1.18 
Bihar 
5.04 
88.66 
98.23 
73.37 
- 
57 
1.14 
Chandigarh 
39.8 
57.22 
- 
- 
87.09 
14 
1 
Chhattisgarh 
11.87 
87.73 
95.5 
67.14 
95.29 
45 
1.02 
Dadra & Nagar Haveli 
12.68 
86.17 
96.61 
81.82 
88.47 
27 
0.9 
Daman & Diu 
17.93 
82.07 
98.16 
67.38 
59.21 
16 
1.21 
Delhi 
50.86 
49.14 
- 
78.38 
72.53 
28 
1.01 
Goa 
42.47 
57.52 
99.42 
78.62 
84.64 
25 
0.92 
Gujarat 
33.43 
66.56 
96.91 
74.31 
92.64 
34 
0.81 
Haryana 
30.65 
65.61 
93.97 
80.97 
93.66 
17 
0.93 
Senior 
Elementary 
Secondary 
State/UT 
Private 
schools 
Secondary 
PTR 
GPI 
Government 
schools (%) 
GER 
GER 
(Secondary) 
(%) 
GER 
Himachal Pradesh 
14.7 
85.29 
99.01 
87.43 
89.1 
25 
0.97 
Jammu & Kashmir 
18.07 
81.93 
93.38 
80.08 
86.06 
15 
0.94 
Jharkhand 
5.96 
84.81 
92.24 
74.63 
95.45 
68 
1.05 
Karnataka 
33.17 
66.79 
96.76 
72.89 
95.67 
15 
1.02 
Kerala 
62.29 
27.97 
99.99 
87.09 
99.37 
17 
0.99 
Lakshadweep 
0 
100 
99.2 
85.43 
96.88 
2 
1.13 
Madhya Pradesh 
17.98 
80.9 
91.57 
62.06 
98.25 
36 
0.98 
Maharashtra 
36.62 
62.83 
98.49 
86.3 
97.75 
22 
0.95 
Manipur 
30.77 
66.74 
91.57 
85.1 
- 
13 
0.99 
Meghalaya 
45.11 
53.57 
87.28 
70.29 
- 
13 
1.18 
Mizoram 
32.16 
67.74 
91.31 
69.64 
91.49 
9 
1.01 
Nagaland 
25.65 
74.35 
92.89 
72.74 
87.71 
19 
1.06 
Odisha 
13.55 
83.55 
96.73 
70.34 
- 
23 
0.99 
Puducherry 
41.17 
58.82 
99.56 
84.51 
93.24 
14 
1.01 
Punjab 
25.16 
70.83 
96.76 
88.52 
93.48 
17 
0.99 
Rajasthan 
32.34 
65.44 
94.66 
82.41 
- 
25 
0.83 
Sikkim 
31.97 
68.03 
97.75 
78.59 
85.3 
19 
1.18 
Tamil Nadu 
33.34 
66.35 
- 
91.41 
96.12 
21 
1.04 
Telangana 
30.27 
68.32 
97.84 
84.47 
99.23 
19 
1.07 
Tripura 
6.91 
89.23 
97.62 
51.05 
86.62 
33 
1.01 
Uttar Pradesh 
34.82 
63.54 
92.87 
88.3 
97.14 
41 
0.99 
Uttarakhand 
24.58 
73.88 
96.32 
82.59 
94.77 
17 
0.97 
West Bengal 
10.19 
86.43 
96.47 
77.98 
90.8 
28 
1.19 
All India 
24.88 
72.57 
95.44 
79.91 
98.88 
27 
1.01 

Note: Gross Enrolment Ratio (GER):  GER for a class-group is the ratio of the number of persons in the class-group to the number of persons in the corresponding official age-group; Gender Parity Index (GPI):  It is the ratio of the number of female students enrolled at a certain level of education to the corresponding number of male students at such a level; Pupil-Teacher Ratio (PTR):  It is the number of pupils per teacher. Sources: Educations Statistics at a glance, 2016, Ministry of Human Resource Development, 2016; Flash Statistics, District Information System for Education, 2015-16; PRS. 

| Government        | No. of    |
|-------------------|-----------|
| State             |           |
| Private           |           |
| Colleges          |           |
| GPI               |           |
| Andaman &         |           |
| Nicobar Islands   |           |
| -                 | 7         |
| Andhra Pradesh    | 2,129     |
| Arunachal Pradesh | 6         |
| Assam             | 62        |
| Bihar             | 163       |
| Chandigarh        | 9         |
| Chhattisgarh      | 370       |
| Dadra & Nagar     |           |
| Haveli            |           |
| 4                 | 3         |
| Daman & Diu       | 4         |
| Delhi             | 75        |
| Goa               | 32        |
| Gujarat           | 1,745     |
| Haryana           | 701       |
| Himachal Pradesh  | 153       |
| Government     | No. of    |
|----------------|-----------|
| State          |           |
| Private        |           |
| Colleges       |           |
| GPI            |           |
| Jammu and      |           |
| Kashmir        |           |
| 162            | 142       |
| Jharkhand      | 134       |
| Karnataka      | 2,628     |
| Kerala         | 1,001     |
| Lakshadweep    | -         |
| Madhya Pradesh | 1,411     |
| Maharashtra    | 3,599     |
| Manipur        | 35        |
| Meghalaya      | 28        |
| Mizoram        | 1         |
| Nagaland       | 44        |
| Odisha         | 713       |
| Puducherry     | 50        |
| Punjab         | 762       |
| Rajasthan      | 1,908     |
| Sikkim         | 5         |
| Tamil Nadu     | 2,029     |
| Telangana      | 1,814     |
| Tripura        | 8         |
| Uttar Pradesh  | 5,048     |
| Uttarakhand    | 214       |
| West Bengal    | 632       |
| All India      | 27,679    |

Note: Gross Enrolment Ratio (GER):  GER for a class-group is the ratio of the number of persons in the class-group to the number of persons in the corresponding official age-group; Gender Parity Index (GPI):  It is the ratio of the number of female students enrolled at a certain level of education to the corresponding number of male students at such a level; Pupil-Teacher Ratio (PTR):  It is the number of pupils per teacher. Sources: Educational Statistics at a glance, 2016, Ministry of Human Resource Development; PRS. 

 
Sources: National Achievement Survey, 2012 and 2015, National Council of Educational Research and Training; PRS. Note:  1. The National Achievement Survey (NAS) is carried out by National Council of Educational Research and Training every three years to ascertain the learning achievement of students during elementary education in government and government-aided schools. 

2. Arunachal Pradesh, Manipur, Lakshadweep, and Dadra & Nagar Haveli did not participate in NAS, 2012 and NAS, 2015. 

3. The scores range between 0 and 400.  They are scaled for consistency and comparability across states by adjusting for difficulty of tests and ability of students. 

 
2018