The Effectiveness of Government Higher Education Expenditure on Gross Enrollment Ratio in India

This paper tries to synthesize the knowledge between public spending and enrolment into higher education. It has been well recognized that education has the positive relationship with the economic development. This study emphasizes on the relevancy of public expenditure on higher education. The evaluation of pooled/panel data of 28 Indian States (except Telangana) of the period 2001-02 to 2011-12 of dependent variable Gross Enrolment Ratio (GER) in higher education and explanatory variables such as GER at school level, per-capita expenditure on primary, secondary and higher education, expenditure on social services other then education and drop-out at school level attempts to demonstrate the effectiveness of these variables on GER at higher education. The utilization of OLS and Hausman random effect presented the result to analyze the effectiveness of explanatory variables. This study based on the secondary data, analysis of budget expenditure on education of MHRD and reports such as AISHE and UGC reports are the relevant sources for this study.