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LATEST NEWS UPDATES | Pvt schools gain at expense of the govt-run by Rukmini Shrinivasan

Pvt schools gain at expense of the govt-run by Rukmini Shrinivasan

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published Published on May 28, 2010   modified Modified on May 28, 2010


Newly released National Sample Survey data shows that the proportion of students in private educational institutions has increased at the cost of those in government institutions, but private education remains affordable only to upper classes.

Meanwhile, expenditure on education, particularly private education, is growing much faster than household budgets.

The NSS 64th round (2007-8) records data on participation and expenditure on education after a gap of 11 years. The NSS data shows that the proportion of students in private institutions (general education at all levels) rose from 28.2% in 1995-96 (52nd round) to 30.8% in 2007-08.

For private unaided institutions alone, the rise is from 10.5% to 18.8%. For urban areas, the proportion of students in private schools has now crossed 50% at the primary, middle, secondary and higher education levels, a significant rise since 1995-96. Here, too, private unaided institutions have grown most rapidly.

However, private education remains largely restricted to families with higher incomes. An analysis of spending on education by income deciles in 2007-08 shows that only the top 10% of rural India spends enough to match the average expenditure on private education. In urban India, only the top 30% can, by extension, afford private education.

Expenditure on education in real terms (at 2007-08 prices and adjusted for inflation) grew by over half over the last decade, much more so on private education. For private unaided institutions, household expenditure per student grew 69%, while for private aided institutions the increase was 48%.

This growth in expenditure on education is far in excess of the growth in average income. While annual household income in rural areas grew by 19% between 1995-96 and 2007-08 (according to calculations based on the NSS Household Expenditure surveys for those years), expenditure on education grew by 54%.

In urban India, while income grew by 27%, expenditure on education grew by 72%. Families now pay an average of Rs 1,413 annually per child in primary school, Rs 2,088 in middle school, Rs 4,351 in secondary school and Rs 7,360 for higher education. There are big variations across rural and urban areas — families in urban areas spend more than twice what those in rural areas spend on primary, middle and secondary education, but the gap narrows in higher education.

There is a big variation across states as well, from Rs 600-800 annually for primary education in states like Bihar, Chhattisgarh, Jharkhand and Orissa to more than Rs 3,500 in states like Punjab and Haryana.


The Times of India, 28 May, 2010, http://timesofindia.indiatimes.com/India/Pvt-schools-gain-at-expense-of-the-govt-run/articleshow/5983275.cms


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