Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:

How has education expenditure as a percentage of GDP changed from 1952 to 2014?

Options:

It remained constant.

It increased irregularly.

It increased consistently.

It has not been uniform and there has been irregular rise and fall.

Correct Answer:

It has not been uniform and there has been irregular rise and fall.

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.