An analysis of public finance in education in India

Education has become the fundamental right of an Indian citizen. In the UN charter of Human Rights Article 26 states that every human has the right to get free and compulsory education and accessibility of higher levels of education. The Millennium Development goals 2000 has also included it as one of the eight priorities to be attained till 2015. The long term goal of inclusive development on which recent five year plans are based is unattainable without mass education. Education has always been a priority concern in the agenda of social sector throughout the planning period in India among all the political parties due to its dual role in the growth process. Firstly, it controls the pressure of population on the resources by bringing an attitudinal change. Secondly, it produces the human capital by increasing the quality of population. The human capital theory states this relation and India's growth story in the 21st century clearly reveals this fact where service sector is contributing more than half of GDP. The decadal growth pattern of Indian education can be seen in different phases. The 1950’s was a period of fast expansion at all levels of education. The 1960’s were characterized by increasing rates of growth of the higher education sector and declining rates of growth for school education.