Question : Allocation of Budget

(a) the total budget allocated and spent on education during the last three years, its
percentage in terms of Gross Domestic Product (GDP) and the action plan of
expenditure to be hiked on education in terms of percentage of GDP during the last
three years;
(b) the time by which Higher Education Financing Agency (HEFA) would be set up to
increase research facilities in centrally aided institution and higher education; and
(c) the amount likely to be provided to HEFA, the rate on which loan would be provided to
teaching institutions through HEFA and the ways through which thisinterest would be
borne?

MINISTER OF STATE IN THE MINISTRY OF HUMAN RESOURCE DEVELOPMENT
(DR. SATYA PAL SINGH)
(a) As per analysis of Budgeted Expenditure on Education published by MHRD
for the Year 2014-15 to 2016-17, Expenditure on Education by the Government over
education and as percentage of GDP is as follows:
<pre>
2014-15 2015-16 (RE) 2016-17 (BE)
Expenditure
(Rs. Crore)
As % of
GDP
Expenditure
(Rs. Crore)
As % of
GDP
Expenditure
(Rs. Crore)
As % of
GDP
506849.14 4.07 587439.55 4.27 668395.12 4.39
</pre>
Government expenditure on education both in absolute terms as well as %age of GDP has
been increasing over the last three years. As far as the hike in education expenditure is
concerned, the budget for education in India is finalized and decided by Ministry of
Finance and the State Governments.
(b) & (c) Higher Education Financing Agency (HEFA) has been set upwith Government
equity of Rs.6000 crore with Canara Bank as joint promoterand is operational.
Incorporated as a Section 8 Company, the entity, with a total authorized equity capital of
Rs.10,000 crore, would leverage additional resources from themarket, to finance projects
for development of world class facilities and Labs inhigher, school and medical education
institutions. HEFA has, so far, approvedprojects of higher, school and medical education
institutions amounting toRs.31207.02 crore with total sanctioned loan amount of
Rs.15819.74 Crore.The present rate of interest is 8.5% per annum, subject to revision from
time totime. The interest obligation on the loan from HEFA by the institutions is borne by
theGovernment.
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