The National Education Policy (NEP) 2020 was released on July 30, 2020.  It will replace the National Policy on Education, 1986.  Key recommendations of the NEP include: (i) redesigning the structure of school curriculum to incorporate early childhood care and education, (ii) curtailing dropouts for ensuring universal access to education, (iii) increasing gross enrolment in higher education to 50% by 2035, and (iv) improving research in higher education institutes by setting up a Research Foundation.  In this blog, we examine the current status of education in the country in view of some of these recommendations made by the NEP.

Universal access to Education

The NEP states that the Right to Education Act, 2009 has been successful in achieving near universal enrolment in elementary education, however retaining children remains a challenge for the schooling system.  As of 2015-16, Gross Enrolment Ratio was 56.2% at senior secondary level as compared to 99.2% at primary level.  GER denotes enrolment as a percent of the population of corresponding age group.  Further, it noted that the decline in GER is higher for certain socio-economically disadvantaged groups, based on: (i) gender identities (female, transgender persons), (ii) socio-cultural identities (scheduled castes, scheduled tribes), (iii) geographical identities (students from small villages and small towns), (iv) socio-economic identities (migrant communities and low income households), and (v) disabilities.  In the table below, we detail the GER in school education across: (i) gender, and (ii) socio-cultural identities.  

Table 1: GER in school education for different gender and social groups (2015-16)

Level

Male

Female

SC

ST

All

Primary (I-V) 

97.9%

100.7%

110.9%

106.7%

99.2%

Upper Primary (VI-VIII) 

88.7%

97.6%

102.4%

96.7%

92.8%

Secondary (IX-X) 

79.2%

81%

85.3%

74.5%

80%

Senior Secondary (XI-XII) 

56%

56.4%

56.8%

43.1%

56.2%

Sources: Educational Statistics at Glance 2018, MHRD; PRS.

Data for all groups indicates decline in GER as we move from primary to senior secondary for all groups.  This decline is particularly high in case of Scheduled Tribes.  Further, we analyse the reason for dropping out from school education.  Data suggests that the most prominent reason for dropping out was: engagement in domestic activities (for girls) and engagement in economic activities (for boys). 

Table 2: Major reasons for dropping out (Class 1-12) for 2015-16

Reason for dropping out

Male

Female

Child not interested in studies 

23.8%

15.6%

Financial Constraints 

23.7%

15.2%

Engage in Domestic Activities 

4.8%

29.7%

Engage in Economic Activities 

31.0%

4.9%

School is far off 

0.5%

3.4%

Unable to cop-up with studies 

5.4%

4.6%

Completed desired level/ Class 

5.7%

6.5%

Marriage

 

13.9%

Other reasons

5.1%

6.2%

Note: Other reasons include: (i) timings of educational Institution not suitable, (ii) language/medium of Instruction used unfamiliar, (iii) inadequate number of teachers, (iv) quality of teachers not satisfactory, (v) unfriendly atmosphere at school. For girl students, other reasons also include: (i) non-availability of female teachers, (ii) non-availability of girl’s toilet.
Sources: Educational Statistics at Glance 2018, MHRD; PRS.

The NEP recommends strengthening of existing schemes and policies which are targeted for such socio-economically disadvantaged groups (for instance, schemes for free bicycles for girls or scholarships) to tackle dropouts.   Further, it recommends setting up special education zones in areas with significant proportion of such disadvantaged groups.  A gender inclusion fund should also be setup to assist female and transgender students in getting access to education. 

Increasing GER in Higher Education to 50% by 2035

The NEP aims to increase the GER in higher education to 50% by 2035.  As of 2018-19, the GER in higher education in the country stood at 26.3%.  Figure 2 shows the trend of GER in higher education over the last few years.  Note that the annual growth rate of GER in higher education in the last few years has been around 2%.    

Figure 1: GER in Higher Education (2014-15 to 2018-19)

image                                                                                                     

 

 

 

 

 

Sources: All India Survey on Higher Education, MHRD; PRS.

Table 3: Comparison of GER (higher education) with other countries

Country

GER (2017-18)

India 

25%

Brazil

51%

China

49%

Indonesia

36%

South Africa

22%

Pakistan

9%

Germany

70%

France 

66%

United Kingdom

60%

Sources: UNESCO; PRS.

The NEP recommends that for increasing GER, capacity of existing higher education institutes will have to be improved by restructuring and expanding existing institutes.  It recommends that all institutes should aim to be large multidisciplinary institutes (with enrolments in thousands), and there should be one such institution in or near every district by 2030.   Further, institutions should have the option to run open distance learning and online programmes to improve access to higher education.  

Foundational literacy and numeracy

The NEP states that a large proportion of the students currently enrolled in elementary school have not attained foundational literacy and numeracy (the ability to read and understand basic text, and carry out basic addition and subtraction).  It recommends that every child should attain foundational literacy and numeracy by grade three.  

Table 4 highlights the results of the National Achievement Survey 2017 on the learning levels of students at Grade 3 in language and mathematics.  The results of the survey suggest that only 57% students in Grade 3 are able to solve basic numeracy skills related to addition and subtraction.  

Table 4: NAS results on learning level of Grade-3 students

Learning level (Grade 3)

Percentage of students

Ability to read small texts with comprehension (Language)

68%

Ability to read printed scripts on classroom walls such as poems, posters (Language)

65%

Solving simple daily life addition and subtraction problems with 3 digits (Mathematics)

57%

Analyses and applies the appropriate number operation in a situation (Mathematics)

59%

Sources: National Achievement Survey (2017) dashboard, NCERT; PRS.

To achieve universal foundational literacy and numeracy, the Policy recommends setting up a National Mission on Foundational Literacy and Numeracy under the MHRD.  All state governments must prepare implementation plans to achieve these goals by 2025.  A national repository of high-quality resources on foundational literacy and numeracy will be made available on government’s e-learning platform (DIKSHA).   Other measures to be taken in this regard include: (i) filling teacher vacancies at the earliest, (ii) ensuring a pupil to teacher ratio of 30:1 for effective teaching, and (iii) training teachers to impart foundational literacy and numeracy.

Effective governance of schools

The Policy states that establishing primary schools in every habitation across the country has helped increase access to education.  However, it has led to the development of schools with low number of students.  The small size of schools makes it operationally and economically challenging to deploy teachers and critical physical resources (such as library books, sports equipment).  

With respect to this observation, the distribution of schools by enrolment size can be seen in the table below.  Note that, as of September 2016, more than 55% of primary schools in the country had an enrolment below 60 students.   

Table 5: Distribution of schools by enrolment size

Strength (Grade)

Below 30

31-60

61-90

91-120

121-150

151-200

More than 200

Primary schools (Class 1-5)

28.0%

27.5%

16.0%

10.3%

6.3%

5.6%

6.4%

Upper primary schools (Class 6-8)

14.8%

27.9%

18.7%

15.0%

8.4%

7.2%

8.0%

Upper primary schools (Class 1-8)

5.7%

11.6%

13.0%

12.1%

10.4%

13.4%

33.8%

Sources: Flash Statistics on School Education 2016-17, UDISE; PRS.

While nearly 80% primary schools had a library, only 1.5% schools had a librarian (as of September 2016).  The availability of facilities is better in higher senior secondary schools as compared to primary or upper primary schools. 

Table 6: Distribution of schools with access to physical facilities

Facilities

Primary schools (Class 1-5)

Upper primary schools (Class 1-8)

Higher senior secondary
 schools (Class 1-12)

Library

79.8%

88.0%

94.4%

Librarian

1.5%

4.5%

34.4%

Playground

54.9%

65.5%

84.3%

Functional computer

4.4%

25.2%

46.0%

Internet connection

0.9%

4.2%

67.9%

Sources: Flash Statistics on School Education 2016-17, UDISE; PRS.

To overcome the challenges associated with development of small schools, the NEP recommends grouping schools together to form a school complex.  The school complex will consist of one secondary school and other schools, aanganwadis in a 5-10 km radius.  This will ensure: (i) adequate number of teachers for all subjects in a school complex, (ii) adequate infrastructural resources, and (iii) effective governance of schools.

Restructuring of Higher Education Institutes

The NEP notes that the higher education ecosystem in the country is severely fragmented.  The present complex nomenclature of higher education institutes (HEIs) in the country such as ‘deemed to be university’, ‘affiliating university’, ‘affiliating technical university', ‘unitary university’ shall be replaced simply by 'university'.

According to the All India Survey on Higher Education 2018-19, India has 993 universities, 39,931 colleges, and 10,725 stand-alone institutions (technical institutes such as polytechnics or teacher training institutes).  

Table 7: Number of Universities in India according to different categories

Type of university

Number of universities

Central University

46

Central Open University

1

Institutes of National Importance

127

State Public University

371

Institution Under State Legislature Act

5

State Open University

14

State Private University

304

State Private Open University

1

Deemed University- Government

34

Deemed University- Government Aided

10

Deemed University- Private

80

Total

993

Sources: All India Survey on Higher Education 2018-19; PRS.

The NEP recommends that all HEIs should be restructured into three categories: (i) research universities focusing equally on research and teaching, (ii) teaching universities focusing primarily on teaching, and (iii) degree granting colleges primarily focused on undergraduate teaching.  All such institutions will gradually move towards full autonomy - academic, administrative, and financial.  

Setting up a National Research Foundation to boost research

The NEP states that investment on research and innovation in India, at only 0.69% of GDP, lags behind several other countries.   India’s expenditure on research and development (R&D) in the last few years can be seen in the figure below.   Note that the total investment on R&D in India as a proportion of GDP has been stagnant at around 0.7% of GDP.   In 2018-19, the total expenditure on R&D in India was Rs 1,23,848 crore.  Of this, Rs 72,732 crore (58%) of expenditure was by government, and the remaining (42%) was by private industry. 

Figure 2: R&D Expenditure in India (2011-12 to 2018-19) 

image     

 

 

 

 

 

 

Sources: S&T Indicators Table 2019-20, Ministry of Science and Technology, March 2020; PRS.

Figure 3: Comparison of R&D expenditure in India with other countries (2017)

image

 

 

 

 

 

 

 

 

 

Sources: S&T Indicators Table 2019-20, Ministry of Science and Technology, March 2020; PRS.

To boost research, the NEP recommends setting up an independent National Research Foundation (NRF) for funding and facilitating quality research in India.  The Foundation will act as a liaison between researchers and relevant branches of government as well as industry.  Specialised institutions which currently fund research, such as the Department of Science and Technology, and the Indian Council of Medical Research, will continue to fund independent projects.  The Foundation will collaborate with such agencies to avoid duplication.

Digital education

The NEP states that alternative modes of quality education should be developed when in-person education is not possible, as observed during the recent pandemic.  Several interventions must be taken to ensure inclusive digital education such as: (i) developing two-way audio and video interfaces for holding online classes, and (ii) use of other channels such as television, radio, mass media in multiple languages to ensure reach of digital content where digital infrastructure is lacking.

In this context, we analyse: (i) the availability of computer and internet across households in India, and (ii) ability to use computer or internet by persons in the age group of 5-14.  As of 2017-18, the access to internet and computer was relatively poor in rural areas.  Only 4.4% of rural households have access to a computer (excludes smartphones), and nearly 15% have access to internet facility.  Amongst urban households, 42% have access to internet. 

Table 8: Access to Computer and Internet across households (2017-18)

Access to ICT

Rural

Urban

Overall

Households having computer

4.4%

23.4%

10.7%

Households having internet facility

14.9%

42.0%

23.8%

Note: Computer includes desktop, laptop, notebook, tablet.  It does not include smartphone. 

Sources: Household Social Consumption on Education (2017-18), Ministry of Statistics and Programme Implementation, July 2020; PRS.

Table 9: Ability to use Computer and Internet across persons in the age group 5-14 (2017-18)

Ability to use ICT

Rural

Urban

Overall

Ability to use computer

5.1%

21.3%

9.1%

Ability to use internet

5.1%

19.7%

8.8%

Note: Ability to use computer means to be able to carry out any of the tasks such as: (i) copying or moving a file/folder, (ii) sending emails, (iii) transferring files between a computer and other devices, among others. Ability to use internet means to be able to use the internet browser for website navigation, using e-mail or social networking applications.

Sources: Household Social Consumption on Education (2017-18), Ministry of Statistics and Programme Implementation, July 2020; PRS.

Public spending on education to be increased to 6% of GDP

The recommendation of increasing public spending on Education to 6% of GDP was first made by the National Policy on Education 1968 and reiterated by the 1986 Policy.  NEP 2020 reaffirms the recommendation of increasing public spending on education to 6% of GDP.  In 2017-18, the public spending on education (includes spending by centre and states) was budgeted at 4.43% of GDP.  

Table 10: Public spending on Education (2013-2018)

Year

Public expenditure (Rs crore)

% of GDP

2013-14

4,30,879

3.84%

2014-15

5,06,849

4.07%

2015-16

5,77,793

4.20%

2016-17

6,64,265

4.32%

2017-18

7,56,945

4.43%

Sources: 312th Report, Standing Committee on Human Resource Development, March 2020; PRS.

Figure 4: Comparison of public spending on Education in India with other countries as % of GDP (2015)

image

 

 

 

 

 

 

 

 

 

Sources: Educational Statistics at Glance 2018, MHRD; PRS.

In the figure below, we look at the disparities within states in education spending.  In 2020-21, states in India have allocated 15.7% of their budgeted expenditure towards education.  States such as Delhi, Rajasthan, and Maharashtra have allocated more than 18% of their expenditure on Education for the year 2020-21.  On the other hand, Telangana (7.4%), Andhra Pradesh (12.1%) and Punjab (12.3%) lack in spending on education, as compared to the average of states. 

Figure 5: Budgeted allocation on Education (2020-21) by states in India

image

Note: AP is Andhra Pradesh, UP is Uttar Pradesh, HP is Himachal Pradesh and WB is West Bengal.
Sources: Analysis of various state budget documents; PRS.

For a detailed summary of the National Education Policy, see here

This week, the centre issued two Ordinances to amend: (i) the Salary, Allowances, and Pension of Members of Parliament Act, 1954 to reduce the salaries of MPs by 30% for a period of one year, and (ii) the Salaries and Allowances of Ministers Act, 1952, to reduce the sumptuary allowance of Ministers by 30% for one year.  The government also amended the rules notified under the 1954 Act to reduce certain allowances of MPs for one year, and suspended the MPLAD Scheme for two years.  These changes are being made to supplement the financial resources of the centre to tackle the COVID-19 pandemic.  These amendments raise larger questions on the effect they have on the capacity of the state to fight the pandemic, and the way in which salaries of MPs should be determined.

Overview of Amendments

The 1954 Act lays out the salary and various allowances that an MP is entitled to during their term in Parliament and also provides pension to former MPs.  MPs receive a salary of one lakh rupees per month, along with compensation for official expenses through various allowances.  These include a daily allowance for attending Parliament, constituency allowance and office expense allowance.  Under the first Ordinance, the salaries of MPs are being reduced by 30%.  Further, the constituency allowance and office expense allowance are being reduced by Rs 21,000 and Rs 6,000, respectively. 

The 1952 Act regulates the salaries and other allowances of Ministers (including the Prime Minister).  The Act provides for the payment of a monthly sumptuary allowance (for expenditure incurred in entertaining visitors) at different rates to the Prime Minister, Cabinet Ministers, Ministers of State, and Deputy Ministers.  The second Ordinance is reducing the sumptuary allowances of Ministers by 30%. 

Note that the 1952 Act pegs the salaries, and daily and constituency allowances of Ministers to the rates specified for an MP under the 1954 Act.  Similar provisions apply to presiding officers of both Houses (other than Chairman of Rajya Sabha) who are regulated by a different Act.  Therefore, the amendments to the salaries and constituency allowance of MPs will also apply to Ministers, Speaker and Deputy Speaker of Lok Sabha, and Deputy Chairman of Rajya Sabha.  The salary of the Chairman of Rajya Sabha will continue to remain unaffected by the Ordinances (Rs 4 lakh per month). 

Further, since 1993, MPs can also identify projects and sanction certain funds every year for public works in their constituencies under the Members of Parliament and Local Area Development (MPLAD) Scheme, 1993.  Since 2011-12, each MP can spend up to Rs five crore per year under the scheme.  The Union Cabinet has approved the suspension of the MPLAD Scheme for two years.  Table 1 below compares the changes in salaries, allowances and MPLAD entitlements of MPs.

Table 1: Comparison of changes in the salaries, allowances and MPLAD entitlements of MPs

Feature

Previous entitlement (in Rs per month)

New entitlement (in Rs per month)

Changes for the period of

Salary

 1,00,000

70,000

One year

Constituency allowance

70,000

49,000

One year

Office allowance

60,000

54,000

One year

Of which

Office expenses

20,000

14,000

-

 

Secretarial assistance

40,000

40,000

-

Sumptuary allowance of Prime Minister

3,000

2,100

One year

Sumptuary allowance of Cabinet Ministers

2,000

1,400

One year

Sumptuary allowance of Ministers of State

1,000

700

One year

Sumptuary allowance of Deputy Ministers

600

420

One year

Funds under MPLAD Scheme

5 crore

NIL

Two years

Sources: 2020 Ordinances; Members of Parliament (Constituency Allowance) Amendment Rules, 2020; Members of Parliament (Office Expense Allowance) Amendment Rules, 2020; “Cabinet approves Non-operation of MPLADs for two years (2020-21 and 2021-22) for managing COVID 19”, Press Information Bureau, Cabinet, April 6, 2020; PRS.

Effect of amendments on resources to fight COVID-19

The proposed reduction to the salaries and allowances of MPs and Ministers amounts to savings of around Rs 55 crore, and the suspension of the MPLAD scheme is expected to save Rs 7800 crore.  These measures comprise 0.03% and 4.5% respectively, of the estimated amount required to fight the immediate economic distress unleashed due to COVID.  Government has estimated Rs 1.7 lakh crore as the requirement for COVID relief measures under the Pradhan Mantri Garib Kalyan Yojana.  Therefore, such measures to decrease MP salaries and allowances toward increasing the pool of funds for fighting the pandemic are likely to have an almost negligible impact.

How might MP salaries be set

Each MP is required to represent the interests of his constituents, formulate legislation on important national matters, hold the government accountable, and ensure efficient allocation of public resources.  The salary and office allowance of an MP must be assessed in light of the responsibilities expected to be discharged by them. Ensuring MPs are reasonably compensated in terms of salaries allows MPs the means to be able to discharge their duties devotedly, enables them to make decisions in an independent manner and guarantees that citizens from all walks of life can stand a chance of running for Parliament.  The question remains – who decides what is reasonable compensation for MPs. 

Currently, MPs in India decide their own salaries which is passed in the form of an Act of Parliament.  MPs setting their own pay leads to a conflict of interest.  A way to resolve this is by setting up an independent commission to determine that salaries of MPs.  This is a practice followed in certain democracies, such as New Zealand and United Kingdom.  In some other countries, it is pegged to annual wage rate index such as Canada.  Table 2 lists various methods used in some other countries to set salaries for legislators.

Table 2: Methods for setting salaries in different democracies

Countries

Process of determining salary of legislators

India

Parliament decides by passing an Act.

Australia

Remuneration Tribunal decides the salary.  This is revised annually.

New Zealand

Remuneration Authority decides the salary.  This is revised annually.

UK

Independent Parliamentary Standards Authority sets the pay annually as per the changes in average earnings in the public sector given by the Office for National Statistics.

Canada

Member’s pay is adjusted each year to federal government’s annual wage rate index.

Germany

Based on income of a judge of the highest federal court and adjusted annually by the Parliament. 

Sources: Various government websites of respective countries; PRS.

India has experience with appointing independent commissions to examine the emoluments of government officials.  The central government periodically sets up pay commissions to review and recommend changes to the wage structure of government employees with a view to attract talent to government services.  The latest Central Pay Commission was constituted in 2014 to decides the emoluments of central government employees, armed forces personnel, employees of statutory bodies, and officers and employees of the Supreme Court.  Typically, the Commissions have been chaired by a former Judge of the Supreme Court, and have included members representing government service and independent experts.

Suspending  MPLADS

In contrast to these amendments, the suspension of the MPLAD Scheme is a positive step.   

The MPLAD Scheme (MPLADS) was introduced in December 1993 to enable legislators to address local developmental problems for their constituents.  MPLADS allows legislators to earmark up to five crore rupees every year on public works projects in their constituency and recommend these projects to the district authorities for implementation.  Typically, funds under the MPLADS are expended on construction or installation of public facilities (such as school buildings, roads, and electrical facilities), supply of equipment (such as, computers in educational institutions) and sanitation projects. 

In 2010, a five-judge bench of the Supreme Court decided a challenge to the constitutionality of the MPLADS.  It was argued that MPLADS violates the concept of separation of powers between the executive and the legislature since it provides the MP with executive powers on local public works.  The Court ruled that there was no violation of the principle of separation of powers because the role of an MP in this case is recommendatory and the actual work is carried out by the local authorities. 

However, the Scheme has undermined the role of an MP as a national-level policy maker.  The role of an MP is to determine whether government’s budgetary allocations across development priorities are appropriate and once the money is sanctioned by Parliament is it being spent in an efficient and efficacious manner.  However, focus on local administration-level issues, such as development of roads or sanitation projects, obscures the role of the MP in conducting oversight.  Another fall out of having MPs responsible for MPLADS is that it skews the expectations of citizens have of their MPs – holding them accountable for resolving local development issues rather than broader policy and legislative decision making. The suspension of MPLADs will allow for MPs to focus on their role in Parliament.  

The Ordinance route

Through these Ordinances, the executive has amended the salaries and allowances of MPs and Ministers.  In principle, Parliament is discharged with law-making powers.  In exceptional circumstances, the Constitution permits the executive to make laws through Ordinances if Parliament is not in session and immediate action is required.  The two Ordinances will have to be ratified by Parliament within six weeks of its sitting in order to continue to have the force of law.  Interestingly, India is one of the few countries, apart from Bangladesh and Pakistan, that vests the executive with authority to make laws, even if temporary in nature. 

The Ordinance amending the salaries of MPs also raises a question on whether it is appropriate that the executive has the power to amend the emoluments of MPs – how would this affect the independence of the legislature which is tasked with holding the executive accountable.