Wednesday 25 May 2011

Maharashtra, Uttarakhand top spenders on education: ASSOCHAM


Maharashtra is the undisputed leader spending in the past five financial years.

Maharashtra, Uttarakhand and Chattisgarh have emerged as top spenders on education, while states like Assam, West Bengal and Bihar are trying to catch up by increasing their allocation reveals ASSOCHAM Study.

While the top three states have budgeted for 21.1%, 20.5% and 19.5% for the financial year 2010-11 as ratio to aggregate expenditure, the growth in the allocation was more in Rajasthan, Assam and West Bengal at almost 19.1%, 19.0% and 18.3% respectively over the year 2009-10.

Considering the budgeted figures of 2010-11 over the actual expenditure of 2009-10, it is clear that these states want to catch up with the increasing demand for trained manpower. Assam and West Bengal have almost doubled their allocation from 13.5% to 19.0% and 17.3% to 18.3% respectively this year as compared to the previous year.

Maharashtra is the undisputed leader spending in the past five financial years, No wonder Maharashtra occupies predominant place in India's growing service sector.

Though, the budgeted figures of the current fiscal for Maharashtra have witnessed a rise of 34 per cent between the years 2005-06 and 2010-2011 way behind in terms of aspirations.

A small state like Meghalaya has increased its spending vis-à-vis 2005-06 from 15.5% to the budgeted figure of 18.0% in 2010-11. Bihar and Andhra Pradesh too have been aggressive raising their expenditure by 18.0% and 18.0% respectively over the same period.

These growth propellers are throwing numerous challenges along with opportunities. One of the most important is the gap between demand and supply of skilled work force.

“A key element in taking the country forward and maintaining its growth momentum has been its highly skilled and competent global workforce. Nevertheless, there is no scope of complacency and continuous efforts for creating new facilities and upgrading of the existing is crucial”, said D S Rawat, Secretary General ASSOCHAM.
                                               
The states are fast realizing that education not only plays a vital role in the economic development but also in social improvement. Many states are enhancing their expenditure to impart quality education to fulfill the requirements of the sector. Mizoram with literacy rate of more than 88 per cent spends the least among all states.
With significant potential still untapped, it is expected that the global sourcing phenomenon will continue to expand. However, the competition among the emerging markets is becoming stiffer. To maintain its edge India will have to spend intelligently on quality education.

The study shows that though states have become vibrant, the increase in the allocation of central government for education has seen rise during the period from 2006-07 to 2010-11 (Budgetary Estimates) as against a growth rate of literacy.

In addition, the state governments’ share of total expenditure of centre and states on education has been ascending.

Keeping all this in view, the centre needs to play a more active role in shaping the education to facilitate proper planning and coordinated development of the technical education system throughout the country. 

No comments:

Post a Comment