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Question

Which type of fiscal estimation is the Kothari Commission's (1964-66) recommendation that a university should spend each year about 25 for each student and 300 per teacher?

The correct answer is

Per capita method

Kothari Commission Fiscal Estimation

The question asks about the type of fiscal estimation recommended by the Kothari Commission (1964-66), specifically its suggestion for spending a certain amount "for each student" and "per teacher." This method is known as the Per capita method.

Understanding the Kothari Commission (1964-66)

The Kothari Commission, officially known as the Education Commission, was a landmark commission set up by the Government of India to examine all aspects of the Indian education sector and provide recommendations for its improvement. It functioned from 1964 to 1966, headed by Dr. D. S. Kothari, then chairman of the University Grants Commission (UGC).

One of the crucial areas the Kothari Commission addressed was educational finance and resource allocation. It recognized the importance of adequate funding for quality education.

Per Capita Method in Educational Finance

The Per capita method of fiscal estimation involves calculating or allocating funds based on a fixed amount per unit, such as per student, per teacher, or per institution. In the context of education, this means determining the total budget by multiplying the number of students or teachers by a predetermined per-unit cost.

  • When the Kothari Commission recommended that a university should spend about ₹25 for each student and ₹300 per teacher annually, it was proposing a fiscal estimation based on individual units (students and teachers).
  • This approach helps in standardizing expenditure and ensuring a minimum level of funding for each student and teacher, regardless of the overall size of the institution, up to a certain point.
  • It focuses on the cost associated with each beneficiary or staff member, making it a straightforward way to estimate financial needs.

This method contrasts with others like the 'Method of details' (which involves a thorough breakdown of all expenditure items) or 'Method of proportion' (which might allocate funds as a percentage of a larger budget). The 'Formula method' is a broader term that could encompass per capita, but the specific mention of "per student" and "per teacher" points directly to the Per capita method.

Therefore, the Kothari Commission's recommendation of specific spending amounts "per student" and "per teacher" is a classic example of the Per capita method of fiscal estimation in education.

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Important Questions from Financial Management - Teaching

  1. Preparation of Library budget without considering previous year budget is known as:

  2. Which budgeting process starts from "scratch" with the proposed activities for the year?

  3. In a research-oriented special library emphasizing current scientific findings, which listed category commonly accounts for a large share of recurring collection expenditure?

  4. According to staff formula, which section of the university library needs to have "one person for every 50 readers using the library in a day of the year"?

  5. In the normal annual advance-planning cycle, a library prepares its budget for the _______.

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