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LATEST NEWS UPDATES | Centre now fixes 65-35 fund sharing pattern for RTE Act

Centre now fixes 65-35 fund sharing pattern for RTE Act

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published Published on Aug 6, 2010   modified Modified on Aug 6, 2010

Putting an end to the months of controversy over fund sharing for the Right to Education Act, the Union government has now fixed a 65-35 sharing pattern. The pattern, which received the in-principal approval of the expenditure finance committee of the ministry of finance, will be applicable for the next five years.

With this, states like Uttar Pradesh and Bihar, both governments that had demanded 100% Central assistance, will have to make space for `more action' in their current budgetary allocation. According to ministry data, a total of Rs 2.31 lakh crore will be spent in implementing the new Act over the next five years. This will be in addition to the Rs 24,000 crore that has already been released by the Centre towards expenditure across different states. With the inclusion of this amount to Rs 2.31 lakh crore, the total Central share goes up to 68%.

Although the Central share will now be higher than what was promised earlier, yet for Uttar Pradesh, the division of funds may still be a bitter pill to swallow. That's because according to the basic education department, elementary education accounts for nearly 10% of the state's total annual budget. A figure, insiders claim, is a significant chunk of the state budget. "The state has several other concerns like infrastructure, health and security. Keeping these demands in mind, a 10% share to basic education is not small.''

In 2010-11, a total of Rs 15076.85 crore has been set aside for primary school education. Aside from imparting compulsory free education to children, the amount is also diverted towards teacher recruitments, Basic Training Certificate (BTCs), and also for recruiting untrained graduates and post graduates from universities and training them through the distance learning programmes of IGNOU.

Interestingly, an assessment by the 13th Finance Commission where many states had revealed that many states expressed an inability to bear 45% of the project cost for Sarva Shiksha Abhiyan. Since the expenditure involved in implementing RTE was nearly double, their demand for 100% Central assistance, it was felt, was not unreasonable.


The Times of India, 6 August, 2010, http://timesofindia.indiatimes.com/city/lucknow/Centre-now-fixes-65-35-fund-sharing-pattern-for-RTE-Act/articleshow/6263552.cms


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