ABSTRACT
This chapter discusses the quantum of public expenditure on education by the union government. It analyses the bulk of this expenditure is earmarked for a few key flagship programmes such as the Sarva Shiksha Abhiyan (SSA), the Mid-Day Meal scheme (MDM) and the Rashtriya Madhyamik Shiksha Abhiyan (RMSA) geared towards expansion of secondary education. India is unique among other developing countries in its use of earmarked taxes for financing public expenditure on education. It is extremely important, therefore, to see whether this increase in expenditure by the union government is crowding in or crowding out expenditure by the states or the private sector. One major factor augmenting the resources available for elementary education in India is the revenue mobilised on account of the education cess. The unit-level data gives some information about student participation in government, government-aided, private-aided and private unaided schools.
