Saturday, March 19, 2011

Fiscal implications of RTE

The GoI has enacted the RTE with a vision to provide ‘free’ elementary education (class one to eight) to ‘each’ child in the age group six to fourteen. Capital task, the need of the hour, particularly in view of the demographics of India where over 35 crores, currently in the zero – fourteen age group will add to work force over the next fifteen years.
However, RTE will have large fiscal implications, as the Govt will need to step up its education expenditure. Expenditure will rise on account of existing schools with current enrolments to become RTE norms compliant (in terms of infrastructure, number of teachers etc). Further, ‘compulsory’ education will entail students currently out of schools to be enrolled; new schools will need to be built and additional teachers employed. The act looks to provide training and learning material to teachers and schools. ‘Free’ education will entail reimbursing students’ textbook, writing material and uniform costs.
To see detailed estimates for two components of total costs - infrastructure and teachers, for govt. schools in rural India, please see:
Demographic estimates from 'Indian Demographic Scenario, 2025' by Prof. P N Mari Bhatt

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