Public Spending in Higher Education in India

Abstract

This article is an attempt to build an empirical ground for supporting the increased role of public funding in higher education. The rationale for the same becomes pertinent in the current scenario when ‘public good’ nature of higher education is rapidly eroding. Various measures like the proportion of GDP/GSDP spent and the trend of per capita public expenditure on higher education have been calculated from 1990–1991 to 2009–2010 using 2004–2005 constant price.1 The calculations are done at an all India level and also across the 15 major states.2 The study also measures the distribution of subsidy in higher education to assess if it is progressive/regressive among five quintile groups,3 across 15 major states, and at an all India level, using National Sample Survey 64th round (2007–2008) unit level records. The tool of benefit incidence analysis has been used to arrive at the results for the same. Suits index and concentration curves have been used to supplement the results. Although the results at an all India level show a pro-rich distribution of subsidy at the higher level of education, a state-wise analysis showcases varied results, on several occasions breaking the India level norm which warrants appropriate reflections on policy implications.