Unit Public Expenditure on Education and Student-Teacher ratio in Mizoram, India: An Empirical Analysis

Abstract

Since education is an important and basic input required to improve the quality of human resources, public expenditure on education has been regarded as investment in human capital which further leads to economic development. As per Union Buget-2020, India spent only 4.6 per cent of its total GDP on education, and ranked 62nd in total public expenditure on education per student in the world. This reveals that allocating higher public expenditure on education is obligatory to improve the economic aspects of the country. As a remote and backward state like Mizoram, it is clearly stated that quality of human resources through education has been the key economic tool for the improvement of the state economy. For instance, the main objective of the present study is to analyze the unit public expenditure and student-teacher ratio. The study covers the period of 1981-2014 and found that there has been gradual increase in public expenditure per student of school education in Mizoram both in current and constant prices with CAGR of 10.52 percent and 3.04 percent respectively. The per capita public expenditure has increased from Rs.738.07 in 1981-82 to Rs.23299.18 in 2013-14, while it has increased from Rs.738.07 to Rs.2625.55 at constant price during the same period.