KARNATAKA - of Planning Commission

Financing Human DevelopmentWithin all categoriesof education, one findsthat revenue expendituredominates totalexpenditure and is as highas 99 per cent and above.The share of capitalexpenditure is negligiblein the education sector.The share of primaryeducation in the totalrevenue expenditureis about 50 per centand that of secondaryeducation is 27 per cent.categories of education, one fi nds that revenueexpenditure dominates total expenditure and isas high as 99 per cent and above. The share ofcapital expenditure is negligible in the educationsector.General education takes the lion’s share(92 per cent) of the total revenue expenditureon education. Most importantly, the shareof primary education in the total revenueexpenditure is about 50 per cent and that ofsecondary education is 27 per cent: the combinedshare of primary and secondary education intotal education expenditure is, thus, about77 per cent, which is as it should be.Thus, expenditure within the education sector inKarnataka is characterised by the dominant role of:(i) revenue expenditure in all types of education;(ii) general education within the education sector;and (iii) primary and secondary education withinthe general education.Comparison with all-India andselected statesA comparison of the ratios and patterns ofexpenditure at all-India level (all states andCentral Government), and with other southernstates (Andhra Pradesh, Kerala and Tamil Nadu)for three years [2000-01 (Actual/Accounts),2001-02 (Revised Estimates), and 2002-03(Budget Estimates)] reveals the following insightsfor Karnataka (Table 3.2.3): Karnataka’s PER (i.e. public educationexpenditure as a percentage of state income)on revenue expenditure was 3.41 per centin 2000-01. This ratio was higher than thatof Andhra Pradesh (2.86 per cent) and theCentral Government (0.54 per cent), butlower than those of Kerala (4.11 per cent),Tamil Nadu (3.47 per cent) and the all states’average (4.36 per cent). Karnataka’s SAR (i.e. public educationexpenditure as a percentage of total publicexpenditure in the state) on revenueexpenditure has declined since 2000-01;it fell from 21.34 per cent in 2000-01 to19.02 per cent in 2001-02 and to 18.96per cent in 2002-03. These fi gures, too, arehigher than those of Andhra Pradesh and theCentral Government, but lower than those ofKerala and Tamil Nadu.Karnataka’s SAR on capital expenditure wasabout 0.1 per cent from 2000-01 through2002-03. Kerala consistently recordedthe highest SAR on capital account: 1.34per cent in 2000-01, 2.35 per cent in2001-02 and 2.92 per cent in 2002-03.These fi gures clearly imply that revenue expenditure(or expenditure on salaries and grants) dominateseducation expenditure in all states and in thecountry as a whole. The inadequacy of funds, (aslow as 1 per cent), mainly impacts the non-salarycomponent of education expenditure, which isused for inputs such as infrastructure (constructionof classrooms, providing equipment, libraries,laboratories, drinking water and toilets), teachers’training, curriculum development and instructionalmaterial – all of which contribute to improving thequality of education in state schools.Total revenue expenditure in public education isdistributed between plan and non-plan expenditure.A comparison of these expenditure patterns revealsthat non-plan education expenditure is higherthan plan expenditure on education in total planexpenditure, in all states and at the all-India level,in all the years. The non-plan expenditure of theEducation Department as a percentage of totalnon-plan expenditure in Karnataka was 21.12per cent in 2000-01, 18.18 per cent in 2001-02and 18.22 per cent in 2002-03. These shares arelower than those of Kerala and Tamil Nadu, buthigher than Andhra Pradesh, all states’ average(for 2000-01) and the Central Government (forall three years). Since plan expenditure is used fordevelopmental activities and non-plan expenditurefor maintenance of assets created during earlierPlan periods, the size of plan outlays is a trueindicator of improvements, either in coverage or inquality, or both, in education (Table 3.2.3).The share of plan expenditure of the EducationDepartment in Karnataka’s total expenditure isthe highest among all southern states, all states’average as well as the Central Government.Important components of plan expenditure include52