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An Expert Group on Financial Requirements for Making Elementary Education a Fundamental Right had estimated an additional requirement of Rs. 1,37,000 crores over the next ten years for achieving Universal Elementary Education. However, the Financial Memorandum attached to the Constitution (93rd) Amendment Bill, 2001 which sought to make elementary education a fundamental right, had stated that total overall financial burden due to implementation of obligations under the proposed provision, would be about 9800 crores per annum to be shared between Central and State Governments. In a ten year period, this is estimated at Rs. 98000 crores.
To augment Central Governments normal budgetary resources for elementary education, an Education Cess has been levied in 2004-05 @ 2% on Income Tax, Excise Duty, Customs Duty and Service Tax to fulfill the commitment of the Government to provide and finance universalized quality basic education. This is resulting in substantially enhanced allocations for the elementary education in the Central Plan as would be clear from the following figures:
Budget Estimate 2004-05 Rs. 5750 crores Revised Estimate 2004-05 Rs. 8982 crores
(including Rs. 1232 crores provided under
State Sector as Additional Central Assistance for Mid Day Meal Scheme) Budget Estimate 2005-06 Rs. 12241.76 crores
This information was given by the Minister of State for Human Resource Development Shri M.A.A Fatmi in a written reply in the Rajya Sabha today.
UM/SPS/SB
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