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One can understand the inadequacy of the expenditure on education if we compare it with the desired level of education expenditure as recommended by the various commissions. The Education Commission (1964–66) headed by Kothari had recommended that at least 6 percent of GDP be spent on education so as to make a noticeable rate of growth in educational achievements. The education structure given by the Commission was 10+2+3. One of the recommendations of the Commission was to introduce the work experience as the integral part of the school curriculum. The Tapas Majumdar Committee, appointed by the Government of India in 1999, estimated an expenditure of around Rs 1.37 lakh crore over 10 years (1998-99 to 2006-07) to bring all Indian children in the age group of 6-14 years under the purview of school education. Compared to this desired level of education expenditure of around 6 percent of GDP, the current level of a little over 4 percent has been quite inadequate. In principle, a goal of 6 percent needs to be reached—this has been accepted as a must for the coming years. In 2009, the Government of India enacted the Right of Children to Free and Compulsory Education Act. As per RTE Act 2009, private schools must reserve a 25 percentage of their total seats for children from economically weaker sections and disadvantaged groups.

One can understand the inadequacy of the expenditure on education if we compare it with the desired level of education expenditure as recommended by the various commissions. The Education Commission (1964–66) headed by Kothari had recommended that at least 6 percent of GDP be spent on education so as to make a noticeable rate of growth in educational achievements. The education structure given by the Commission was 10+2+3. One of the recommendations of the Commission was to introduce the work experience as the integral part of the school curriculum. The Tapas Majumdar Committee, appointed by the Government of India in 1999, estimated an expenditure of around Rs 1.37 lakh crore over 10 years (1998-99 to 2006-07) to bring all Indian children in the age group of 6-14 years under the purview of school education. Compared to this desired level of education expenditure of around 6 percent of GDP, the current level of a little over 4 percent has been quite inadequate. In principle, a goal of 6 percent needs to be reached—this has been accepted as a must for the coming years. In 2009, the Government of India enacted the Right of Children to Free and Compulsory Education Act. As per RTE Act 2009, private schools must reserve a 25 percentage of their total seats for children from economically weaker sections and disadvantaged groups.

One can understand the inadequacy of the expenditure on education if we compare it with the desired level of education expenditure as recommended by the various commissions. The Education Commission (1964–66) headed by Kothari had recommended that at least 6 percent of GDP be spent on education so as to make a noticeable rate of growth in educational achievements. The education structure given by the Commission was 10+2+3. One of the recommendations of the Commission was to introduce the work experience as the integral part of the school curriculum. The Tapas Majumdar Committee, appointed by the Government of India in 1999, estimated an expenditure of around Rs 1.37 lakh crore over 10 years (1998-99 to 2006-07) to bring all Indian children in the age group of 6-14 years under the purview of school education. Compared to this desired level of education expenditure of around 6 percent of GDP, the current level of a little over 4 percent has been quite inadequate. In principle, a goal of 6 percent needs to be reached—this has been accepted as a must for the coming years. In 2009, the Government of India enacted the Right of Children to Free and Compulsory Education Act. As per RTE Act 2009, private schools must reserve a 25 percentage of their total seats for children from economically weaker sections and disadvantaged groups.

One can understand the inadequacy of the expenditure on education if we compare it with the desired level of education expenditure as recommended by the various commissions. The Education Commission (1964–66) headed by Kothari had recommended that at least 6 percent of GDP be spent on education so as to make a noticeable rate of growth in educational achievements. The education structure given by the Commission was 10+2+3. One of the recommendations of the Commission was to introduce the work experience as the integral part of the school curriculum. The Tapas Majumdar Committee, appointed by the Government of India in 1999, estimated an expenditure of around Rs 1.37 lakh crore over 10 years (1998-99 to 2006-07) to bring all Indian children in the age group of 6-14 years under the purview of school education. Compared to this desired level of education expenditure of around 6 percent of GDP, the current level of a little over 4 percent has been quite inadequate. In principle, a goal of 6 percent needs to be reached—this has been accepted as a must for the coming years. In 2009, the Government of India enacted the Right of Children to Free and Compulsory Education Act. As per RTE Act 2009, private schools must reserve a 25 percentage of their total seats for children from economically weaker sections and disadvantaged groups.

One can understand the inadequacy of the expenditure on education if we compare it with the desired level of education expenditure as recommended by the various commissions. The Education Commission (1964–66) headed by Kothari had recommended that at least 6 percent of GDP be spent on education so as to make a noticeable rate of growth in educational achievements. The education structure given by the Commission was 10+2+3. One of the recommendations of the Commission was to introduce the work experience as the integral part of the school curriculum. The Tapas Majumdar Committee, appointed by the Government of India in 1999, estimated an expenditure of around Rs 1.37 lakh crore over 10 years (1998-99 to 2006-07) to bring all Indian children in the age group of 6-14 years under the purview of school education. Compared to this desired level of education expenditure of around 6 percent of GDP, the current level of a little over 4 percent has been quite inadequate. In principle, a goal of 6 percent needs to be reached—this has been accepted as a must for the coming years. In 2009, the Government of India enacted the Right of Children to Free and Compulsory Education Act. As per RTE Act 2009, private schools must reserve a 25 percentage of their total seats for children from economically weaker sections and disadvantaged groups.

If all the people of the economy increase the proportion of income they save (i.e. if the mps of the economy increases) the total value of savings in the economy will not increase – it will either decline or remain unchanged. This result is known as the Paradox of Thrift – which states that as people become more thrifty they end up saving less or same as before. This result, though sounds apparently impossible, is actually a simple application of the model we have learned. Let us continue with the example. Suppose at the initial equilibrium of Y, there is an exogenous or autonomous shift in people's expenditure pattern – they suddenly become more circumspect and conservative about their expenditures. Hence the MPS of the economy increases, or, alternatively, the MPC decreases. The multiplier is an important concept to find out the effect of the autonomous expenditure on aggregate output whose value is calculated by 1/1-MPC, where, MPC is equal to 1-MPS.

If all the people of the economy increase the proportion of income they save (i.e. if the mps of the economy increases) the total value of savings in the economy will not increase – it will either decline or remain unchanged. This result is known as the Paradox of Thrift – which states that as people become more thrifty they end up saving less or same as before. This result, though sounds apparently impossible, is actually a simple application of the model we have learned. Let us continue with the example. Suppose at the initial equilibrium of Y, there is an exogenous or autonomous shift in people's expenditure pattern – they suddenly become more circumspect and conservative about their expenditures. Hence the MPS of the economy increases, or, alternatively, the MPC decreases. The multiplier is an important concept to find out the effect of the autonomous expenditure on aggregate output whose value is calculated by 1/1-MPC, where, MPC is equal to 1-MPS.

If all the people of the economy increase the proportion of income they save (i.e. if the mps of the economy increases) the total value of savings in the economy will not increase – it will either decline or remain unchanged. This result is known as the Paradox of Thrift – which states that as people become more thrifty they end up saving less or same as before. This result, though sounds apparently impossible, is actually a simple application of the model we have learned. Let us continue with the example. Suppose at the initial equilibrium of Y, there is an exogenous or autonomous shift in people's expenditure pattern – they suddenly become more circumspect and conservative about their expenditures. Hence the MPS of the economy increases, or, alternatively, the MPC decreases. The multiplier is an important concept to find out the effect of the autonomous expenditure on aggregate output whose value is calculated by 1/1-MPC, where, MPC is equal to 1-MPS.

If all the people of the economy increase the proportion of income they save (i.e. if the mps of the economy increases) the total value of savings in the economy will not increase – it will either decline or remain unchanged. This result is known as the Paradox of Thrift – which states that as people become more thrifty they end up saving less or same as before. This result, though sounds apparently impossible, is actually a simple application of the model we have learned. Let us continue with the example. Suppose at the initial equilibrium of Y, there is an exogenous or autonomous shift in people's expenditure pattern – they suddenly become more circumspect and conservative about their expenditures. Hence the MPS of the economy increases, or, alternatively, the MPC decreases. The multiplier is an important concept to find out the effect of the autonomous expenditure on aggregate output whose value is calculated by 1/1-MPC, where, MPC is equal to 1-MPS.

If all the people of the economy increase the proportion of income they save (i.e. if the mps of the economy increases) the total value of savings in the economy will not increase – it will either decline or remain unchanged. This result is known as the Paradox of Thrift – which states that as people become more thrifty they end up saving less or same as before. This result, though sounds apparently impossible, is actually a simple application of the model we have learned. Let us continue with the example. Suppose at the initial equilibrium of Y, there is an exogenous or autonomous shift in people's expenditure pattern – they suddenly become more circumspect and conservative about their expenditures. Hence the MPS of the economy increases, or, alternatively, the MPC decreases. The multiplier is an important concept to find out the effect of the autonomous expenditure on aggregate output whose value is calculated by 1/1-MPC, where, MPC is equal to 1-MPS.