The 13th Finance Commission has allotted an amount of Rs 24068 crore for the implementing the Right to Education (RTE) Act.


Last Updated: 2010-02-26T06:44:35+05:30

Finance Commission Allots Rs 24000 Crore to Implement RTE Act

New Delhi: Human Resource Development (HRD) Ministry has boisterously announced the Right to Education (RTE) Act, but the lack of adequate funds to support the generous plan was making the government consider over its implementation. Now, with the announcement of the 13th Finance Commission allocating Rs 24,068 crore for Sarva Shiksha Abhiyan (SSA) to all the states for the next five years, both HRD ministry as well as the states is experiencing a boon for elementary education.
 
The Commission has also fully accepted the demand for grants made by the HRD ministry. Although the Commission is yet to chalk out the funding pattern for the RTE Act, but it recognizes that its implementation requires more funds. The report highlights two things about education. Firstly, it is for the first time that the 13th Finance Commission has allocated Rs 24, 068 crore of funds for all the states, unlike that of the 12th Commission which allocated funds for only eight states.
Equivalent of 15% of the assessed requirement, the funds, which is to be distributed to the states for the next five years, is part of the equalization grant to all of them. The funds promise to incur recurring expenditure, which SSA is expected to bring in terms of salary, training and similar other heads except the capital expenditure, which does not fall under its reign. Further, the Commission has stipulated that the expenditure (excluding Rs 24,068 crore) should grow by at least 8%.
 
Considering the inability of 14 states to contribute to their share of 40% for SSA last year, it is now improbable that they would be able to increase it to the required 45% from the next fiscal. However, it is expected that deploying more funds for the states might help solve this problem. The Commission has made it very clear right from the start that although it has been generous in allocating the huge amount, but this should not be used as a substitute for current expenditure of states.
- By Iti Agarwal
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