Education needs more fiscal spending: Economic Survey

Education needs more fiscal spending: Economic Survey, brainfeed magazine

As India is emerging as a knowledge-based economy the country needs to strengthen its social infrastructure by investing in education and health, revealed the latest version of the mid-year Economic Survey that was tabled in the Parliament today.

The survey said government spending on social services grew by 11.5% to Rs 11,18,094 crore in 2016-17.

The survey further said India continued to face challenges while overcoming the economic and social hurdles in its bid to advance capabilities of the “marginalised, women and other weaker sections of the society”.

The survey also said, in 2015-16 the total expenditure on social services, including education and health, stood at Rs 10,02,591 crore.

Strangely though, expenditure on education jumped from 2.8% in 2014-15 to 3.2% of the GDP in the fiscal year 2017. Health sector also went up marginally from 1.2% in 2014-15 to 1.5% in the last fiscal, the survey said.

The survey also said, “The expenditure on social services by the Centre and States as a proportion of GDP that remained stagnant in the range of 6% during 2011-12 to 2014-15, recorded an increase of 1 percentage point during 2015-16 and 2016-17.”

As a percentage of GDP, the expenditure on social services stood at 7.4% during the fiscal.

Expenditure on education during the fiscal was Rs 4,74,672 crore as against Rs 4,23,171 crore during the previous fiscal, the survey revealed.

The survey, authored by Chief Economic Adviser Arvind Subramanian, said, “India is emerging as a knowledge based economy, poised for double digit growth, and needs to strengthen social infrastructure by investing in health and education.”