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Indians spend more on kids’ education: Survey

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Life is a dream
Staff member
Indian families are investing heavily in education and spending more on healthcare at the expense of basic needs like food, reveals a recent NSSO survey report on spending patterns of households.

Between 1999 and 2009, expenditure on food increased by about 70% among rural families and 78% among urban ones. But the spending on education jumped up by as much as 378% in rural areas and 345% in urban areas.

Even after correcting for inflation, the expenditure on education increased by a phenomenal 162% in rural areas and 148% in urban areas during the decade. Compare this to the overall household expenditure on all items, which increased by a mere 8% in rural areas and 20% in urban areas after adjusting for inflation.

And, it is not just the same people who are spending more on their children’s education. In 2004-05, when the previous such survey was carried out, 40% of rural and 57% of urban families said that they were spending on education. The latest survey records a big jump in these numbers – 63% of rural and 73% of urban families were getting their children educated.

Expenditure on health too has shown a considerable increase though not as much as education. At current prices, spending on medical care in hospitals increased by 152% in rural areas and by 136% in urban areas. The corresponding figures after adjusting for inflation are 38% and 31%.

Spending on non-institutional medical care – medicines, tests, fees etc – jumped up by 60% in rural areas and 102% in urban areas.

After adjusting for inflation, this works out to a decline of about 12% in rural areas – possibly an effect of the National Rural Health Mission – and a modest increase of 12% in urban areas. The increase in the proportion of families accessing institutional facilities is remarkable.

From a minute 1.3% of rural and 1.5% of urban families getting institutional care in 2004-05, the proportions have risen 10-fold to 13% in rural and 14% in urban areas.

The proportion of families reporting non-institutional spending remains at about two-thirds of the total.

The 66th round of NSSO’s survey, carried out between July 2009 and June 2010 covered 2,01,649 households.

Only key data has been released this month and detailed reports covering various aspects of India’s family economics will come out over the year.
Urban poor, tribal welfare on NAC radar

With the National Food Security bill out of the way, the Sonia Gandhi-led National Advisory Council (NAC) will now take up issues like urban poverty, especially the vulnerable groups, and reforms in the Panchayat (Extension to Scheduled Area) Act on a priority basis. Sources said that NAC had already begun consultation on reforms in the PESA. The Act aims to hand over greater powers over natural resources to village councils in tribal-dominated areas.

- times of india
Education is no more education; it is business. Everybody is out to reap the harvest.Secondly, Health? Everybody has become health conscious but lost their self-consciousness. It is sort of a fashion to go for repeated medical checkup. If all your family physicians are making more money out of your common cold and cough the specialists are making big money out of bypass surgeries. etc. When the patient has no self-consciousness why should the specialists have. There is a nexus between ordinary physicians, specialists and multi-tech hospitals. Over and above there are many camps arranged for scouting business in this field. It is all money making business all over.
Education: What's Bill Gates Saying.....The Weekend Interview with Bill Gates: Was the $5 Billion Worth It? - WSJ.com

US has about 35 million students in K-12 Education (total 13 years in school) and the public sector (all governments: local and Fed) is spending about U$600 billions a year...still the overall quality is lacking... less than 10% of the students are taught in private schools.

How to improve it? People say we need higher quality uniform curriculum, highly paid & qualified teachers, small class size and complete parent involvement.

I personally believe that just money alone can't solve the issue...private schools are not the real answer.

US and India must work on ALL FOUR aspects (above mentioned) to improve public education.

From my personal experience with my two kids, who went to Public Schools and graduated as Valedictorian (son) and Salutatorian (daughter) in their High Schools, and then got into Stanford (son) and Cornell (daughter) - one of the North Eastern Ivy Schools, I will say that parent involvement is the most important factor.

We used to spend about 2 hours per kid everyday for 13 years during week days on school works! Weekends were spent mostly on music lessons, sports and extra-curricular competitions worldwide...

We feel such sacrifice is all worth it.

Refer post 1

It is understandable. The increase in expenditure on education is coming from a very low base. We have always been spending on food. So, the increase is mainly due to inflation (and may be partly due to increasing fast food and multi national food courts). Medical expenses - I tend to agree with post 2 here. In any case, increase in education expenditure could be seen as a sign of progress for the country though the quality of output would be the real determining factor. Education is seen both by the giver and the taker as "money-making" rather than "man-making". As a result, it has become quite expensive. We want the "best career prospects" and are willing to take loan for what we believe is a "better future" for our kids.
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