Article Published In Vol.6 (July-Aug-2018)

Nexus between Public Education Expenditure and Human Resource Development: An Empirical Analysis

Author : Geetanjali Patel and Dr. M.S.Annapoorna

There was always a gap between recommendations and implementations especially in case of public expenditure on education which has serious implications on human resource development of the country. Lack of funding is one of the serious concerns which may also be reason for low ranking of India in terms of Human Development Index. It can be easily observed that the total state expenditure on education in the country has hung around 3% of GDP, far below the 6% of GDP as resolved by the National Education Policies. Descriptive method is used to study the relation between Education expenditure by the Government and Human Resource Development of India by using the secondary data collected through the reliable and authenticated sources like Union Budgets of India and Human Development reports published by UNDP. Granger Causality Test is applied to examine the causal relation between the Public Education Expenditure and Human Resource Development. Multiple regression analysis is used to analyse the contribution of education in Human Development Index. The result of the study will help to understand the Government’s role in Human Resource Development through expenditure on education.

Keywords: Public Expenditure, Human Resource Development, Granger Causality Test, Multiple Regression Analysis