Household expenditure on elementary education in India: An empirical evidence

Abstract

Financing education in India involves a federal system where education is primarily the responsibility of state governments but has been considered a concurrent function since the late 1970s. Resources for education are shared between the central and state governments, with funding coming from external and domestic sources. External sources include aid and loans, while domestic sources comprise public and private funding. Public funding comes from both central and state governments, as well as semi-government entities like district boards and local bodies. Private funding involves parental contributions in the form of fees, gifts, and endowments. Constitutionally, elementary education (primary and upper primary levels) should be provided free of cost to families. However, families often express a willingness to pay for education, which remains largely untapped. This study analyzes household expenditure on elementary education in rural and urban India using data from the 75th round of the National Sample Survey (2017-18) and an Ordinary Least Squares (OLS) regression model. The study reveals that household characteristics significantly influence expenditure on elementary education in India.