Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:

There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion: The percentage of ‘education expenditure of GDP’ indicates the importance of education in the scheme of things before the government. 
Reasoning: The percentage of ‘education expenditure of total government expenditure’ expresses how much of people’s income is being committed to the development of education in the country.

Options:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Both Assertion (A) and reasoning (R) are correct but R is not the correct explanation of A.

Assertion (A) is true but Reasoning (R) is not correct.

Both Assertion (A) and Reasoning (R) are incorrect.

Correct Answer:

Both Assertion (A) and Reasoning (R) are incorrect.

Explanation:

The expenditure on education 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. During 1952-2014, education expenditure as percentage of total government expenditure increased from 7.92 to 15.7 and as percentage of GDP increased from 0.64 to 4.13. Throughout this period the increase in education expenditure has not been uniform and there has been irregular rise and fall. To this if we include the private expenditure incurred by individuals and by philanthropic institutions, the total education expenditure should be much higher.