Determinants of Public Expenditure on Education in India: An Empirical Analysis

This paper tries to identify the major determinants of public expenditure on education in India using multiple regression analysis and their implication in policy analysis. The explanatory variables identified in the study are economic growth expressed in GDP per capita, the annual average growth rate of enrolment and certain policies related to education. In addition to these, the Indo-China War, 1962 and the introduction of India’s new economic policy in 1991 have also been considered to have their respective influence on public expenditure on education. The major findings of the paper highlight the influence of the policies on public expenditure on education to be significant. Amongst all the educational policies identified in the study, the effect of NPE, 1986 has been most promising for the expenditure on education in the years following the introduction of the policy.