Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:

What does the percentage of "Education expenditure of total government expenditure" indicate?

Options:

Importance of education in the scheme of things before the government

How much of people’s income is being committed to the development of education

Both of above

None of above

Correct Answer:

Importance of education in the scheme of things before the government

Explanation:

The correct answer is option 1: Importance of education in the scheme of things before the government

This expenditure on education by the government is expressed in two ways (a) as a percentage of ‘total government expenditure’ (b) 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, that is, the importance of education among other expenditures to be made by the government in the budget.

Option2, "How much of people’s income is being committed to the development of education," is not  accurate because it implies that the percentage of education expenditure relative to total government expenditure directly reflects how much of the people’s income is committed to education.

In reality, the percentage of education expenditure in the total government budget shows the government's prioritization of education within its own spending. It does not directly measure how much of individuals’ income is allocated to education. The government’s expenditure on education is funded through various means, including taxes collected from people, but the percentage of education expenditure relative to total government expenditure does not directly quantify the proportion of individual income being used for education.