With reference to the expenditure on education in India, consider the following statements: 1. The plan outlay on education has increased significantly from the First Plan. 2. The expenditure on education as a %age of GDP has continuously increased every year since 1951. 3. It has remained stagnant around 3% in recent years. Which of the following statements are correct?

Correct Option The correct option is (c) 1 and 3 only. Explanation The trends in public investment in the education sector in India, specifically distinguishing between the absolute growth in financial outlays and the relative expenditure as a percentage of the Gross Domestic Product (GDP). Statement-wise Analysis - Statement 1 is Correct: The plan outlay on education has increased significantly in absolute terms since independence. The allocation rose from ₹151 crore in the First Five-Year Plan to thousands of crores in recent budgets, reflecting the expansion of educational infrastructure and schemes. - Statement 2 is Incorrect: The expenditure on education as a percentage of GDP has not increased continuously every year since 1951. The trend has been irregular, characterized by fluctuations (increases and decreases) rather than a linear year-on-year progression. - Statement 3 is Correct: In recent years, public expenditure on education has remained stagnant, hovering between 2.8% and 3.1% of the GDP. This is significantly lower than the 6% target recommended by the Kothari Commission (1966) and reiterated by the National Education Policy 2020. Key Takeaway: While the absolute financial allocation for education has grown substantially over the decades, the spending as a share of GDP has stagnated around 3%, falling short of the long-standing policy goal of 6%.

NCERT Class 9 Economics — Chapter 2: People as Resource

mcqhard

With reference to the expenditure on education in India, consider the following statements:

The plan outlay on education has increased significantly from the First Plan.
The expenditure on education as a %age of GDP has continuously increased every year since 1951.
It has remained stagnant around 3% in recent years.

Which of the following statements are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A1 and 2 only
B2 only
C1 and 3 only
D1, 2 and 3

Did you get this right?

Solution

Correct Option

The correct option is (c) 1 and 3 only.

Explanation

The trends in public investment in the education sector in India, specifically distinguishing between the absolute growth in financial outlays and the relative expenditure as a percentage of the Gross Domestic Product (GDP).

Statement-wise Analysis

Statement 1 is Correct: The plan outlay on education has increased significantly in absolute terms since independence. The allocation rose from ₹151 crore in the First Five-Year Plan to thousands of crores in recent budgets, reflecting the expansion of educational infrastructure and schemes.
Statement 2 is Incorrect: The expenditure on education as a percentage of GDP has not increased continuously every year since 1951. The trend has been irregular, characterized by fluctuations (increases and decreases) rather than a linear year-on-year progression.
Statement 3 is Correct: In recent years, public expenditure on education has remained stagnant, hovering between 2.8% and 3.1% of the GDP. This is significantly lower than the 6% target recommended by the Kothari Commission (1966) and reiterated by the National Education Policy 2020.

Key Takeaway: While the absolute financial allocation for education has grown substantially over the decades, the spending as a share of GDP has stagnated around 3%, falling short of the long-standing policy goal of 6%.

Your note

More from Chapter 2: People as Resource

Consider the following statements regarding 'Human Capital': 1. Human capital refers solely to the physical strength of the population. 2. Investment in human capital yields a return just like investment in physical capital. 3. It is considered superior to other resources like land and physical capital because it can make use of them. Which of the following statements are correct ?

medium

With reference to the classification of economic activities, consider the following 1. Mining and quarrying are classified under the primary sector. 2. Transport and communication are considered part of the primary sector. 3. Activities in the primary sector do not contribute to the national income. Which of the following statements are correct ?

medium

Consider the following statements regarding 'Market' and 'Non-Market' activities: 1. Market activities involve remuneration to anyone who performs the activity for pay or profit. 2. Government services are excluded from market activities. 3. Non-market activities are primarily for self-consumption and processing of primary products. Which of the following statements are correct ?

medium

Which of the following best describes the 'Virtuous Cycle' of human capital formation?

easy

Consider the following statements regarding the 'Sarva Shiksha Abhiyan': 1. It is a significant step towards providing elementary education to all children. 2. It focuses exclusively on higher education in universities. 3. It is a scheme implemented only in metropolitan cities. Which of the following statements are correct ?

medium

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Correct Option

The correct option is (c) 1 and 3 only.

Explanation

Statement-wise Analysis

Statement 1 is Correct: The plan outlay on education has increased significantly in absolute terms since independence. The allocation rose from ₹151 crore in the First Five-Year Plan to thousands of crores in recent budgets, reflecting the expansion of educational infrastructure and schemes.
Statement 2 is Incorrect: The expenditure on education as a percentage of GDP has not increased continuously every year since 1951. The trend has been irregular, characterized by fluctuations (increases and decreases) rather than a linear year-on-year progression.
Statement 3 is Correct: In recent years, public expenditure on education has remained stagnant, hovering between 2.8% and 3.1% of the GDP. This is significantly lower than the 6% target recommended by the Kothari Commission (1966) and reiterated by the National Education Policy 2020.