Status of Education and Health Expenditure in India

Status of Education and Health Expenditure in India

Subject: Economy

Section: Public finance

1. Education Expenditure:
   • Despite high priority accorded, the share of education in total expenditure by the Centre is yet to reach the high of FY 2019-20.
   • Data from the Economic Survey (2022-23) reveals that the share of education in General Government (Centre and State together) expenditure from 2014-15 to 2022-23 has decreased to single digits.
   • Expenditure on education as a share of total budget expenditure was 3.3% in FY 2019-20, dropping to 2.11% in FY 2021-22, and seeing a slight rise to 2.5% in the subsequent years.
   • The decline in expenditure, especially in FY 2020-21, is attributed to the impact of the pandemic.
   • The National Education Policy 2020 (NEP 2020) emphasizes substantial investment in a strong public education system. NEP 2020 envisions increasing public investment in education to reach 6% of GDP, with both the Centre and States working together.
2. Health Expenditure:
   • Expenditure on health witnessed some rise due to the pandemic, but the overall picture is not highly encouraging.
   • The National Health Policy (NHP), 2017, aims to raise government health expenditure to 2.5% of GDP in a time-bound manner.
   • NHP also suggests that States should increase their health spending to at least 8% of their Budget.
   • Data from the Economic Survey shows that General Government expenditure on health increased to 6.9% in FY 2022-23 from 4.5% in FY 2014-15, but it is yet to reach the set target.
   • The rise in health expenditure during the pandemic underscores the importance of healthcare, but sustained efforts are needed to meet the long-term targets.
3. Challenges and Initiatives:
   • The decline in education and health expenditure in certain years, especially during the pandemic, points to challenges in maintaining consistent investment.
   • Initiatives like NEP 2020 and NHP 2017 highlight the commitment to increasing investment in education and health, but achieving the specified targets requires coordinated efforts from the Centre and States.
   • Public investment in education and health is crucial for building a strong and resilient nation, and continued attention to these sectors is essential for sustainable development.

The government needs to prioritize sustained and increased investment in education and health to ensure the well-being and development of the population.

National Education Policy 2020 (NEP 2020):

1. Introduction:
   • NEP 2020 is a comprehensive framework that outlines the vision and roadmap for transforming the education system in India.
   • It was approved by the Union Cabinet in July 2020, replacing the National Policy on Education (NPE) 1986.
2. Key Objectives and Focus Areas:
   • Universalization of Education: Ensuring access to quality education for all from early childhood to higher education.
   • Holistic Learning: Emphasizing holistic and multidisciplinary education, integrating vocational education, and fostering critical thinking and creativity.
   • Flexibility and Multilingualism: Promoting flexibility in choosing subjects, the medium of instruction, and a multilingual approach to education.
   • Technology Integration: Leveraging technology for personalized learning, teacher training, and educational governance.
   • Assessment Reforms: Shifting from rote learning to competency-based assessments, reducing the emphasis on board exams, and introducing continuous assessments.
3. Higher Education Reforms:
   • Integration of Higher Education: Breaking down silos between different streams of education and fostering multidisciplinary universities.
   • Research and Innovation: Encouraging research and innovation, establishing a National Research Foundation (NRF), and promoting a research ecosystem.
   • Global Outreach: Facilitating global integration by allowing top global universities to establish campuses in India and promoting the internationalization of education.
4. School Education Reforms:
   • Foundational Learning: Focusing on foundational literacy and numeracy in early grades.
   • Curriculum Rationalization: Reducing the curriculum load and promoting a more experiential and application-based approach.
   • Teacher Training: Enhancing teacher training and promoting continuous professional development.
5. Implementation and Way Forward:
   • The policy emphasizes phased implementation with a focus on collaboration between the Centre and States.
   • NEP 2020 aims to transform India’s education system to meet the needs of the 21st century and contribute to the nation’s socio-economic development.

National Health Policy 2017 (NHP 2017):

1. Introduction:
   • NHP 2017 is a policy document that sets the vision and strategic direction for health systems in India.
   • It replaces the previous National Health Policy, which was formulated in 2002.
2. Key Objectives and Focus Areas:
   • Universal Health Coverage (UHC): Ensuring access to affordable and quality healthcare services for all citizens.
   • Primary Healthcare: Strengthening primary healthcare as the foundation of the health system, with a focus on preventive and promotive healthcare.
   • Health and Wellness Centers: Transforming sub-centers and primary health centers into Health and Wellness Centers, providing a comprehensive range of services.
   • Health Infrastructure: Enhancing public health infrastructure and addressing human resource gaps.
   • Strategic Purchasing: Introducing strategic purchasing mechanisms for healthcare services.
3. Financing and Governance:
   • Public Health Expenditure: Increasing government spending on health to at least 2.5% of GDP over time.
   • Decentralized Health Planning: Encouraging decentralized health planning and strengthening district-level health systems.
   • Community Engagement: Promoting community participation in health planning and implementation.
4. Health Information Systems:
   • Digital Health: Embracing digital health initiatives to improve healthcare delivery and information management.
5. Regulatory Framework:
   • Regulatory Reforms: Streamlining regulatory frameworks for medical education, clinical practices, and drug prices.
6. Implementation and Monitoring:
   • The policy emphasizes collaborative efforts between the Centre and States for effective implementation.
   • NHP 2017 envisions a health system that meets the healthcare needs of all sections of the population and contributes to improved health outcomes.