In 1997, the union government placed higher education under the category of
Non-merit good
This question is about the classification of goods in public finance, and how that classification was applied to higher education policy in India.
In public economics, goods are often divided into merit goods — goods that generate large positive externalities for society (such as primary education and primary healthcare), which governments therefore justify subsidising heavily even though individuals might under-consume them if left purely to market pricing — and non-merit goods — goods where the direct beneficiary captures most of the private benefit (such as higher earning potential), making the case for heavy public subsidy weaker.
In 1997, as part of the government's subsidy-rationalisation exercise (following the Discussion Paper on Government Subsidies in India), the Union Government placed higher education in the category of a non-merit good. This reclassification meant that higher education was seen as conferring substantial private benefit to the individual student (in terms of future income), and it fed into subsequent debates around reducing public subsidy, encouraging cost recovery through fees, and promoting self-financing courses in Indian higher education.
Therefore, the correct answer is Non-merit good.
Similar Questions
Which one of the following is a non- statutory body?
Which one of the following has been the basis for introduction of yoga in teacher training course?
The major barriers for access to higher education in India are:
(a) more opportunities of employment for less educated
(b) government policies
(c) language of instruction
(d) economic status
(e) competition from foreign universities
(f) gender discrimination in society
Choose your answer from the following options:Which of the following statements is true in the Indian context?
According to GATS (General Agreement on Trade and Services), higher education should be a commodity in the
Rashtriya Uchhatar Shiksha Abhiyan (RUSA) aims to achieve the following in Higher Education System:
(a) Equity
(b) Access
(c) 50% GER
(d) Excellence
Choose the correct option from those given below:In order to meet the demands of market economy and produce competent graduates, who can compete with their counterparts in international markets, the first and foremost change that needs to be introduced in the prevailing system of Indian higher education is related to:
Which among the following is the statutory function of the UGC?
Which of the following statements are correct about deemed universities?
(a) The Governor of the State is the chancellor of deemed universities.
(b) They can design their own syllabus and course work.
(c) They can frame their own guidelines regarding admission and fees.
(d) They can grant degrees.
Codes:
Which of the following statements are correct?
(a) Rajya Sabha is a permanent House which can be dissolved only during national emergency.
(b) Rajya Sabha does not represent the local interests of the States.
(c) Members of the Rajya Sabha are not bound to vote at the dictates of the states they represent.
(d) No Union territory has a representative in the Rajya Sabha.
Codes:
Important Questions from Policies and Governance
Which of the following are the grounds on which discrimination of citizens for admission to educational institutions in India is constitutionally prohibited?
A. Religion and Race
B. Sex and Place of birth
C. Nationality and Colour
D. Age and Nativity
Choose the correct answer from the options given below:
The main objective of the second phase of Capital Infusion through which the State Government is providing financial assistance under "pasupu - Kumkuma" programme to the SHG women is
- The Supreme Court of India directed the government to implement environmental education in all educational institutions as compulsory subject in :
Which one of the following is a non- statutory body?
Which one of the following has been the basis for introduction of yoga in teacher training course?
