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Rules Vs. Responsiveness Education Finances in the context of Governance Transitions

This report examines the PAISA survey findings on education finances in the context of governance transitions, highlighting the need for responsive governance and improved resource allocation towards achieving better learning outcomes. It also explores the challenges in planning, fund distribution, and school-level expenditure. The report concludes with recommendations to address these issues for more effective education financing.

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Rules Vs. Responsiveness Education Finances in the context of Governance Transitions

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  1. The PAISA Survey Rules Vs. Responsiveness Education Finances in the context of Governance Transitions Accountability Initiative Centre for Policy Research

  2. The PAISA Survey Unpacking the total budget Analyzing plans & fund distribution Tracking school level fund flow Understanding school level expenditure & governance

  3. Shifting policy context: Responsive governance? 12th Five Year Plan ……..the approach of the Twelfth Plan for school education will be to define and measure outcomes, and allocate resources in ways that maximise progress towards achieving these outcomes RTE- SSA Framework, 2011-12 “…the need for creation of capacity within the education system and the school for addressing the diversified learning needs…..…..planning and implementation for universal access in the rights based approach would require an understanding of community needs and circumstances as well as decentralized decision making for meeting the diversified needs of children.”

  4. Whither learning? Whither decentralization? Learning and school grants less than 1%

  5. Bang for buck? Crudeestimates on implications of “costs” of educationTo highlight inefficiencies at the frontline • Raw cost differential: Government spends nearly three times per-studentcompared to private sectors. Annual excess of Rs. 50,000 crores • Excess is an outcome of high teacher salaries. Regular, government school teacher makes 20 times more than private sector teachers (Atherton and Kingdon 2010) • ASER data: Significant quality differential in learning between Gvt vs pvt • Learning adjusted cost differential: Excess cost of achieving private sector learning levels is Rs. 232,000 crore or 2.78% GDP

  6. Format-bound planningSchools and districts rarely plan • Who makes a school plan? • 44% schools in PAISA sample had made plans • What is a school plan process? • Format filling exercise (Bihar’s 32 page SDP format) • DISE/ formats restrict the system from actually reflecting school needs • District plan: • Plans made but process are rarely taken seriously. • School plans are not part of the district plan • Low demand (17% SCR, 26% BW) low fulfillment. DISE hurdles

  7. District’s rarely get the money they ask for Nalanda, Bihar Kangra, HP

  8. Centralization plays spoil sport Proposed vs approved • 58% propose budget approved by GoI • 14% of qty related activities approved A glimpse in to PAB negotiations • State 1: In-service training and use of vehicles • State 2: Denied “top-up” grant for text books • State 3: No money for LEP because PAB disapproved of the choice of activities • Vague learning goals: “The State has committed to formulate learning indicators for each class and for attaining the learning outcomes, commensurately.” (State 4)

  9. Misalignment between plans, resources and school needs We got money for a boundary wall. But the real problem in our school is poor quality drinking water” (Bihar HM) “ I went to the district office 7 times to follow up on this classroom” (Bihar HM)

  10. When does money reach schools?

  11. Funds approved vs funds released

  12. Delays in timing of release Includes releases by TFC

  13. Gaps in grant receipts (2014-15)PAISA: National Report

  14. Schools receive money half way through the financial year (2014-15)PAISA National Report

  15. Gap between district releases and receipts in Schools: Medak, Andhra Pradesh 12-13 District Releases (MER)

  16. Gap between district releases and receipts in Schools: Medak, Andhra Pradesh 12-13 School Receipts (PAISA survey)

  17. Gap between district releases and receipts in Schools: Nalanda 12-13 District Releases (MER)

  18. Gap between district releases and receipts in Schools: Nalanda 12-13 School Receipts

  19. Implications of late arrivalRule Bound Expenditure…… • Schools use their own monies to meet essential supplies and ‘adjust’ the books accordingly • Expenditures are delayed (eg. 1.5 lakhs SMG money in HP blocks) • Rule based expenditure (Building less school in Purnea) • Whitewashing a popular annual activity – 56% schools whitewashed their walls in 2013-14

  20. School level progress is slow, civil works….. “ I went to the district office 7 times to follow up on this classroom……after it was sanctioned, it took nearly 4 months for the junior engineer to arrive and approve the plans. In total, it took more than a year and a half for this classroom to be built” ~ HM interviews, Nalanda (2013) Nalanda ACR: 2012-2013 Purnea ACR: 2012-2013

  21. Immediate tasks….some tinkering at the edges • Improved financial management: Building a just-in-time payment system. Eg. e-fms system for MGNREGA • Administrative support to school: Greater information flows through SMS alerts, financial training • Improved planning: Linking school demand with DISE. Eg. PlanPlus But what of learning?

  22. From schooling to learningA performance based financing system to incentivize a focus on learning Three window funding for SSA 50% 25% Learning grant RTE window 25% Performance incentive

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