Public expenditure on higher education in kerala: a comparative study of pre and post liberalisation period

Abstract

ABSTRACT The present study mainly focussed on the growth and pattern of public expenditure on education in general and higher education in particular in India and Kerala during pre and post reform periods. A detailed review of available literature on government financing reveals that there does not exist an in–depth study regarding the impact of economic reforms on public education expenditure particularly that of higher education in Kerala. In this context, the study examines whether there exists a structural break in the trend and pattern of expenditure on education particularly higher education in the post liberalisation period. The study also analysed the relationship between the GSDP and public expenditure on education particularly higher education in India and Kerala. For analysing the objectives, the researcher examined secondary data for 44 years from 1975/76 to 2018/19, from various budgetary reports of the state and central governments and other sources. Usual statistical tools and econometric techniques were applied in the context of examining our objectives. More specifically, hypotheses were tested by using Chow‘s Break Point Analysis and correlation and regression techniques along with Unit Root test, Man Whitney U test, Durbin-Watson test, ̳t‘ test and F test. It is found that the proportion of expenditure on higher education in total education expenditure in India and Kerala has been declining over the years. It is also observed that the proportion of government expenditure on higher education in the GSDP of Kerala has been coming down during the last few decades. This was further accentuated with the introduction of new economic policy in 1991 and the government has been encouraging participation of private agents in sectors that hitherto have been public monopolies. Categorically, the study finds a structural break in the trend and pattern of public expenditure on higher education in India and Kerala during the period since the introduction of reforms in 1991. It shows that the dominant role of government in financing higher education sector has come to an end and, at present, expansion of the sector does not rely heavily on public funds. The role reversal in funding higher education has taken place due to the reform measure of privatization of public institutions and promotion of private institutions in the sector.