case study- primary education NMO 2019

1. Case Study – Primary Education In India
Preparer Name : Raghib Quamar
Emphasized:
A. Financial model which can self sustaining in nature will support schools independently for
some of the expenses which can be converted to 100% self financed in long run, based on
proper utilization of Surplus fund.

2. Few Facts…!
The Primary Education in India or the Elementary education in India is a very huge topic to discuss and many more to add,
We have achieved significantly improvement but lot more to do.
Current Budget has been allocated to Primary education for 53,000 + Crores which is 9.35% more compare to 2014 – 2015
budget but unfortunately 0.45% less in overall budget, which has to be increased as our population is increasing and we
need quality education also.
There are many government schemes which encourage people for Primary education to their children.
In this presentation we will be focusing on “Sarv Siksha Abhiyan” which is having more than 50% of allocation from total
given budget for primay education.
Proposed Finance Model will be based on Poland Education Financing System, which is close related to India Primary
education system with few additions, which will explained in upcoming slides.

3. SSA Facts
 The Sarva Shiksha Abhiyan (SSA) is the Government of India’s (GOI) flagship elementary education programme.
Launched in 2001,it aims to provide universal education to children between the ages of 6 to 14 years. SSA is now
the primary vehicle for implementing the Right of Children to Free and Compulsory Education Act (RTE).
 Cost share and implementation: From FY 2010-11 till FY 2014-15, GOI contributed 65% of the total SSA funds. From
October 2015, this has been revised to 60% with states contributing 40%.
Primary
Education Budget
Central
Government
60% of Total
State
Government
40% of Total
Municipality /
Gram Panchayats
 Poland Education systems Financing is also coming from
Central but they are adding Local Municipality for proper
implementations / Monitoring and making sure the funds
are utilized. Same time Schools are generating their own
revenue or we can say able to manage their own
expenses by utilizing their resources.
 If In india we can add munisality and gram panchayat for
same purpose we can do better.
 Additionally we can install Solar Plates in each schools to
solve their power problem, which is cost saving and will
increase quality of education

4. Now we will focus on Key Financials of Sarv Siksha Abhiayn with Sugessions
Finance Model
After Budget
Proper Allocation Proper Utilization
 The allocation under SSA increased by 11.18% from Rs 23,500 crore to Rs 26,128.81 crore between 2017-18 and 2018-19.
 However, the allocations under SSA are far below the resource estimates made by the ministry of human resource
development (MHRD),
 For two consecutive years, SSA was allocated less than half of the funds demanded by the MHRD. In 2016-17, the ministry
estimated a demand of Rs 55,000 crore for SSA but handed it only Rs 22,500 crore. In 2017-18, while the funds requested by
MHRD remained the same at Rs 55,000 crore, the SSA’s budget was Rs 23,500 crore
 Funds for SSA have been consistently underutilized, a
2017 Comptroller and Auditor General
(CAG) report stated. “Unspent SSA money rose 24%,
from Rs 10,680 crore in 2010-11 to Rs 14,112 crore in
2015-16, the highest being Rs 17,281 crore in 2014-15

5. Now we will focus on Key Financials of Sarv Siksha Abhiayn and few suggestionsc
 GOI allocations for SSA are primarily
funded through a 2 % education cess
called the Prarambhik Shiksha Kosh (PSK).
PSK is a tax-on-tax paid by the public. The
contribution of PSK to SSA financing has
increased significantly from 50 per cent in
FY 2010-11 to 62 per cent in FY 2017-18
Central
Government
State Treasuries
State
Implementation
Municipality /
Gram Panchayats
Current
Proposed
Start
 By Adding Municipality / Gram Panchayats we can have micro level Allocation and
Utilization monitor along with spending control, which will lead to better utilization of
fund means quality education,

6. Now we will focus on Key Financials of Sarv Siksha Abhiayn and few suggestionsc
 Per-student SSA allocations: Per-student
SSA allocations (including both GOI and
state shares) are calculated by dividing
total approved budgets by the number of
children enrolled in government schools.
Per-student allocations have seen a
steady increase since FY 2013-14. In FY
2016-17, per-student allocations stood at
`6,350 (using 2015 enrolment numbers),
a 17 per cent increase from FY 2015-16. It
should be noted that one reason for this
increase is a 2 % drop in government
school enrolment numbers between 2014
and 2015.
 Once quality of education will increase enrolment number will also go up, resulting it
for utilization of complete fund.

7. Now we will focus on Key Financials of Sarv Siksha Abhiayn and few suggestionsc
 Enrolment in government schools has
been declining over the past few years,
whilst that of private schools has been
increasing.
 In addition to private schooling, the
number of students opting for private
tuitions has also increased. In 2014, 25
per cent of students in government
schools and 27 per cent of students in
private schools took additional private
tuitions
 Declining trend in enrolment to Government Schools is alarming situation, for underutilized SSA funds and creating difficulties to achieve
Primary Education Goal of India.
 Because of Poor Quality education irrespective of Government or Private Schools there is additional burden of private tuitions, which can
be ignored if we can utilize allocated fund in a planned manner, which is possible with micro monitoring by Municipality or Gram
Panchayats.

8. Expenditure Performance
 Expenditure is measured as a
proportion of approved budgets.
There are significant variations in
expenditures across states. In FY
2015-16, Himachal Pradesh and
Gujarat spent more than 90 per
cent of their total SSA approvals. In
contrast, West Bengal and
Telangana spent 40 per cent and 41
per cent of approved budgets,
respectively.
 The proportion of approved funds
spent improved considerably in
Jammu and Kashmir from 39 per
cent in FY 2014-15 to 77 per cent in
FY 2015-16. Other states that saw
some improvements in expenditure
include Bihar, Jharkhand and
Gujarat.
It is advisable to have monitoring and justification for lower utilization of fund, if justified need to push those fund to other states.

9. Expenditure Performance
 There were wide variations in expenditure across different
SSA components and states in FY 2015-16. At the time of
preparation of this brief, component wise SSA expenditure
data was available for six states: Tamil Nadu, Madhya
Pradesh, Karnataka, Punjab, Bihar and Maharashtra.
 In FY 2015-16, the Teachers component of the SSA budget
accounted for 70 per cent of total SSA approvals in Bihar
and 92 per cent of the approved funds were spent. In
contrast, whilst Teachers accounted for 75 per cent of
total approvals in Tamil Nadu, only 52 per cent of the
funds were spent
 Among the states studied, Maharashtra allocated one of
the highest share of SSA funds (24 per cent) to Schools,
and spent 52 per cent. Bihar, which allocated 15 per cent
of its total budget to Schools, spent only 27 per cent in FY
2015-16.

10. Cost Model Breakup
Cost Model
Expenditur
e Model
Teachers
Cost
Schools
Cost
Children
Cost
Quality
Education
Manageme
nt
Misc. Cost
 Teachers Cost- which includes teacher salaries, teacher training and
teacher learning materials or equipment.
 Schools Cost - includes infrastructure expenses such as construction
of civil works and maintenance grants
 Children Cost - includes allocations that directly benefit children
enrolled in school, such as transport allowance, uniforms, textbooks
and mainstreaming activities to get out-of-school children back into
school. In addition, reimbursement of per-child costs for 25 per cent
reservation for economically weaker sections in private schools has
been added to this category
 Quality Education- covers largely untied monies for activities to
improve learning, such as the learning enhancement programme and
innovation grants to districts
 Management - covers allocations related to administration and
management activities
 Miscellaneous - includes allocations made for community training
and mobilization

11. Grant / Budget Allocation Model / Incoming
Incoming Finance Model
Union
Budget
Central
Governme
nt
State
Governme
nt
Municipalit
y
Solar Panel
 Central Government – A portion from union budget is finalized
from the Government of India and will be allocated to states as
per the recommendation of MHRD.
 State Government – Will receive from Central Government and
add State contribution to finalize total fund for primary
education to the particular state.
 Local Municipality / Gram Panchayats - Will receive from
State Government to utilize it in their areas. City / Villages etc.
 Solar Panel Installation- Need to utilize previous fiscal periods
unutilized SSA funds for solar panel, which will help schools to
be dependent on their power / electricity need. Which can be
additional financial support.

12. Finance Model – Need to make sure 100% Utilization, if not same amount will be used for Solar Panels.
Budgeted Incoming Money should Utilize 100%
56,387
INR - Crores
Incoming Finance
Items Contribution % Amount Notes
Central Government 60% 33,832
State Government 35% 19,735
Municpality 3% 1,692
Gram Panchayats 2% 1,128
Solar Panel 0% -
Total 100% 56,387
Outgoing Finance
Items % Amount Notes
Teachers 25% 14,097
Schools 20% 11,277
Children 20% 11,277
Quality of Education 20% 11,277
Management 10% 5,639
Misc. Cost 5% 2,819
Total 100% 56,387
56,387
Planned Outgoing
Based on Union Budget - 2019-20
Based on Current situation allocation should be as below -2019-20
Finance Model Primary Education in India

13. Finance Model – Projection for 5 Years
Budgeted Incoming
364,732
INR - Crores
Incoming Finance
Items Contribution % 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
Central Government 60% 33,832 34,847 35,892 36,969 38,078 39,221
State Government 35% 19,735 20,327 20,937 21,565 22,212 22,879
Municpality 3% 1,692 1,742 1,795 1,848 1,904 1,961
Gram Panchayats 2% 1,128 1,162 1,196 1,232 1,269 1,307
Solar Panel 0% - - - - - -
Total 100% 56,387 58,078 59,821 61,615 63,464 65,368
Outgoing Finance
Items % 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
Teachers 25% 14,097 14,379 14,666 14,959 15,259 15,564
Schools 20% 11,277 11,503 11,733 11,968 12,207 12,451
Children 20% 11,277 11,503 11,733 11,968 12,207 12,451
Quality of Education 20% 11,277 11,503 11,733 11,968 12,207 12,451
Management 10% 5,639 5,751 5,866 5,984 6,103 6,226
Misc. Cost 5% 2,819 2,876 2,933 2,992 3,052 3,113
Total 100% 56,387 57,514 58,665 59,838 61,035 62,255
Surplus for Solar Panel - 564 1,156 1,777 2,429 3,112
Planned Outgoing
355,694
Based on Current situation , projected for future
Based on Current and expected population, projected for future
Finance Model Primary Education in IndiaFinance Model Projectionfor 5 YearsPrimary Education in India

14. Summarized Recommendation
1. Involvement of Municipality and Gram Panchayats for proper utilization of allocated funds. Every year
it is under utilized hence we can not cultivate maximum output.
2. If any state is not utilizing the fund, it should be transferred to other States who can utilized in same
fiscal year. In 2015-16 West Bengal spend the lowest % of total allocation.
3. Unutilized fund should be allowed for Solar Panel installation which will help schools to be dependent
on Electricity power. Which will save cost in future also.
4. First Priority for Outgoing Finance will be on Teachers, because many states having vacant positions, it
will help us to increase quality of education.
5. Every year based on circumstances, it is recommended to change the expenditure % to give weightage
to other outgoing components.