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%.

With reference to the expenditure on… - NCERT Class 9 Economics MCQ

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?

NCERT textbook question

From NCERT Economics - class 9 · Page 21

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

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