Budget season is upon us. Federal and provincial budgets for fiscal year 2015-16 are being devised and will be tabled in legislative bodies in the next few weeks. In preparation for the budget season we are publishing a series of blogs on the education budget.
So far we have covered current & development budgets, education financing and achieving education for all goals, per pupil expenditures (PPE), federal spending on education, education spending in Punjab, Balochistan, Sindh, Khyber Pakhtunkhwa and the economic survey 2014-15.
Budget for the year 2015-16 was presented in the Parliament last week by the Federal Finance Minister, based on a total amount of Rs. 4.6 trillion (up from Rs. 4.3 trillion in the previous year).
As a percentage of the total federal budget, education spending is 2.1% following the same trend as previous years.
The Minister referred to human development in the budget speech and regarded it as necessary for growth. Announcing funds for new initiatives he said that Rs. 20.5 billion had been earmarked for development projects in the Higher Education Commission (HEC), while Rs. 51 billion had been set aside for current expenditures of the same. This is an increase of 14% from previous year’s allocations.
In an effort to catch up with Millennium Development Goals (soon to become Sustainable Development Goals), the government will initiate small development programs in the fiscal year 2015-16 for health, education and other fields for which the total allocation is 20billion.The minister noted that the government is working towards reaching the goal of allocating 4% of GDP to education within this tenure. However, since education funding is now the responsibility of provinces hence, moving from the present allocation of 1.67% of GDP to 4.0% will require efforts from both the federal and provincial governments. The federal government will need to increase its spending from 0.34% of GDP to 0.80% and the provinces from 1.33% of GDP to 3.20%.Another initiative to promote education includes the Prime Ministers Fee Reimbursement Scheme for Students of Less Developed Areas through which the Federal Government will cover tuition fees for students registered in Masters or Ph.D programs in HEC-approved public sector educational institutions in less developed areas of the provinces. Around 42,000 (41871) students are estimated to benefit from this initiative.The Prime Minister’s Scheme for Provision of Laptops to Talented Students is set to continue on in the 2015-16 fiscal year. The total allocation in Budget 2015-16 for six of the Prime Ministers special schemes is Rs. 2 billion.In addition, the Prime Minister’s National ICT Scholarship Program will also continue on which will provide 500 IT scholarships to talented students for four years of their undergraduate degree. This scheme has a separate allocated amount of Rs.125 million.
From the Annual Budget Statement 2015-16
Budget Statement 2015-16 summarises of the budget breakup and numbers for education have been listed as follows:Current Expenditure:
Total Current expenditure amounts to Rs. 3.6 trillion while development funds are just shy of Rs. 1 trillion in the newly announced finance bill.
Under the head Education Affairs and Services Rs. 64,014 million were allocated in the year 2014-15, and in the recent budget, after an 18 per cent increase, the amount has increased to Rs. 75,580 million. This is 2.1% of the total current spending (=75,580/3,615,274)
The following snapshot shows the breakdown of these funds under several heads. Close to 75% of the budgeted amount has been earmarked for tertiary education, followed by secondary and then primary.
Development Expenditure:
Total development expenditure in Budget 2015-16 is Rs. 969,039 million, out of which 2.3% have been devoted to education (=22,300/969,039).
Funds under the development head for education were reduced from Rs. 22,436 million in 2014-15 to Rs. 22,300 million in 2015-16. Hardly any financial resources have been committed for development projects in the primary sector, and almost all have been allotted to the HEC.

