Between two years, a country’s education expenditure as a percentage of total government expenditure rises, while its education expenditure as a percentage of GDP stays the same. Which reading is correct?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Importance of education to the government: risen; share of people’s income committed to education: unchanged
Education spending is measured in two ways, and each tells a different thing.
As a percentage of total government expenditure, it shows the importance of education to the government. This share has risen, so the importance has risen.
As a percentage of GDP, it shows how much of people’s income is committed to education. This share is the same, so that reading is unchanged.
NCERT (2026-27): “Growth in Government Expenditure on Education: … This expenditure by the government is expressed in two ways (i) as a percentage of ‘total government expenditure’ (ii) as a percentage of Gross Domestic Product (GDP). The percentage of ‘education expenditure of total government expenditure’ indicates the importance of education in the scheme of things before the government. The percentage of ‘education expenditure of GDP’ expresses how much of people’s income is being committed to the development of education in the country. …” |