Reforming Public Spending on Education and Mobilising Resources

The problems with the structure of public spending on elementary education are threefold: high share of teacher salaries in recurring expenses, higher fiscal priority accorded to secondary education at the state level, and sustainability, as external funding for DPEP runs out. This paper examines the scope for reform in the pattern of education spending and considers ways to mobilise additional resources for elementary education, including earmarking funds for the same.