Disparity in Education Expenditure and Economic Growth in India: An Analysis

Abstract

Enhancing the educational achievements of the population has long been recognized as a crucial factor in driving economic growth, tracing back to the era of Adam Smith. Therefore, prioritizing the improvement of educational attainment is imperative for cultivating economic development. India is widely recognized for its alarmingly high number of individuals with limited access to education. The education system is characterized by a chaotic and disjointed combination of public and private institutions, lacking a viable mechanism to establish effective educational standards. The private sector, in particular, has displayed little capability in executing welfare programs aimed at improving education. So, the expenditure directed by Government towards education sector is recognised as an important input in the education production process which would ensure better educational outcomes. Economic growth is a wider concept where education expenditure plays an important role to boost the economy. It is just like fuel to economy. So, expenditure is at most required. Here the paper tries to examine the disparity in public education expenditure and economic growth. So, study has taken 14 major Indian states by grouping into forwarded states and backword states. It is observed that convergence growth performance of developed and backward region has been reducing of regional disparity in the country in terms of Per capita income and in terms of education expenditure it is also reducing. So we can go for nexus analysis between two variables.