Public Expenditure on Education A Macroeconomics Analysis of Fund Allocation and Policy Implementation in Gujarat

Abstract

This study aims to investigate the relationship between public expenditure on education and economic growth with different dimensions of human development. The economic growth depends upon the spending in the education sector which determines the priority given by the government. The priority of the government shows the efficacy of the government in terms of spending and the effective expenditure on education evidence the efficiency of government spending on the education sector. Public expenditure on education is fruitful in many ways especially when it is utilized in an optimum manner, and the optimum utilization of education expenditure is determined in terms of effective education policy implementation. This study has been carried forward with primary and secondary data. The result of this study has been analysed with the help of parametric and non-parametric test. The finding of this research revealed the positive and significant contribution of public expenditure on education on economic growth and human development. In terms of efficiency, the states with higher income are more efficient than the low-income group states. The efficient utilization of resources is the key indicators of effective education policy implementation. The education policy focused more on technology-based education. Gujarat has adopted ICT based education named Gyankunj that incorporated more technological tools in their educational system. The analysis revealed the positive predicted purposeful implementation of ICT into the classroom. The result of descriptive statistics states the positive purposeful implementation of Gyankunj into the classroom. Teachers belief that after the implementation of ICT students performance has increased. The students learn in optimum ways. The use of ICT provides opportunities for every student to be more active, better and to have greater motivation. This competency might become incompetent due to technological default.