January 2008 

Private Costs of Public Education : A Preliminary Survey of Pune City


- Dr. Dhanmanjiri Sathe
Prof. and Head Dept. of Economics
University of Pune

Abstract :
Is ‘ free’ education really free, was the question we were interested in investigating. More precisely, the purpose of this survey was to find the additional costs of education which the economically disadvantaged parents have to bear, over and above the fees. To that end, 100 families from slum areas in Pune were selected. It was found that only 9 per cent of the families have no expenses over and above the fees. More than 70 per cent of the children have to spend on books and accessories as these are not made available free by the government. Almost 50 per cent of the families were sending their children for tuitions. The average expense on tuitions was around 16 per cent of the average monthly expense per head. There was no gender bias observed in sending a child for tuitions. We suggest that the government should intervene and make these additional costs zero.

Introduction
There is a rare consensus amongst the economists about the who should bear the burden of the costs of school education. School education is accepted to be a ‘merit good’ and therefore, it is expected that all children should consume it. India’s Constitution has taken a very clear position on this issue and the article 45 of the directive principles of state policy states that the state should provide free and complusory education to all children up to the age of 14 by 1960. Moreover, it is also a part of the received wisdom that all the children must have school education because it helps them and it also helps the society to have all its members as literate. The work of Amartya Sen and others since the early 1990s has elaborated the concept of Human Development based on human capability approach (Sen, 1985, 2000). This approach gives high importance to education as attainment of education leads to increase in well being of the people because it influences social change and increases the economic output. Thus, the importance of school education is well accepted and there is also a remarkable degree of unanimity about the who should bear the costs of school education . This is the reason there is a very high presence of the state in this field in most of the economies. In all the advanced economies, while a small percentage of children from wealthier families do go to private schools, most of the children go to schools which are run by the government.

In India the goal of free, universal school education has not been attained in the last fifty years. While enrollment has improved to a certain extent, much needs to be achieved. More over, there has been a proliferation of some new problems. There are questions regarding the quality of education as quantity of education has expanded. Is ‘free’ education really that free? Are the children studying in a proper atmosphere? These are some of the questions which are being asked. In this preliminary survey, we have made an attempt to focus on some of the issues affecting the education of the children in urban areas.

In India free education is available to certain sections of the children. There are basically three types of schools and Maharashtra also follows the same pattern. They are – first category, the government schools i.e. schools which are run by the local government and no fees are charged to the pupils. In common parlance they are known as the corporation/ municipality/panchayat schools (because they run them). The second category is the government-aided schools where government pays for the salaries and other expenses, but the running/control is with some other organization usually an educational trust. Fees are charged to the students but they are very, very low- usually just a token payment. The third category is the private schools where the government does not take up any financial responsibility. As a result the fees
charged to the students are high.

Usually the children from poorer backgrounds go to the first or second type of schools. In this study we are interested in finding out if there are any ‘other costs’ involved in educating a child. That is, even though the school fees are zero or negligible, are there any over and above expenses involved in sending a child to a school? If yes, then what and how much are the other expenses involved in sending a child to school for a poor family? These were the issues we were interested in because if this amount turns out to be substantial then the ‘free’ school education is after all not that ‘free’. More over a high amount could also act as a disincentive in sending a child to the school. It also follows from this that, steps would have to be taken to reduce this burden on the families so that school education becomes really free.

I. Nature of the Sample-
To this end, we surveyed 100 families from the slum areas in Pune. The areas selected were Lohiya Nagar(20), Janata Vasahat(21), Ramwadi(17), Sanjay Park(12), Yeravada(18),Jay Bhavani Nagar(2), Kishkinda Nagar(10) (figures in bracket give the number of families). It was a purposive sample, wherein these slums more or less represented all the areas of the city. The survey was more in the nature of a pilot study where the households were selected randomly. Almost 70 per cent were settled before 1990 and almost 75 per cent were authorized settlements. 80 per cent of the people had Marathi as their mother tongue. 82 per cent gave ‘Hindu’ as their religion and 15 per cent were Muslims. The survey was conducted in the March 2005 and the respondents were the mothers of the children.

Out of the 100 families surveyed, we got 246 children who fell in the age group 5 to 17 years ( i.e. children belonged to standards 1st to 12th ). Out of these 229 (i.e. 93 per cent) did go to school; remaining 7 per cent did not attend school. Thus our sample size for the children became 229. Out of 229, 119 i.e. 52 per cent were boys and 110 i.e. 48 per cent were girls. Almost 82 per cent of the children belonged to the age group 5 to 13 years. Remaining 8 per cent belonged to 14 to 17 years age group.

Type of school : In Table I.1, we have put forth the distribution of children by the type of school. Out of these around 15 per cent went to private schools, remaining 85 per cent went to government schools or government-aided schools. However, we have included the children from the private schools in our sample as their families had not so improved in financial status as to be able to move out of a slum area (as this is not a survey of various types of schools but of poor families and the expenditure patterns they show with respect to school education, we included such children also).

Table I.1
Distribution Of Children By Type Of School

Type of School No. of Children
Government School 87 (38%)
Government-aided School 103 (45%)
Private School 34 (15%)
Non-reported 5 (2)
Total 229 (100)

II. Background of the Family
Employment status : The 100 sample families gave us 216 adults (113 males and 103 females). 90 out of 113 males (i.e. 80 per cent approx.) reported that they had employment for more than 25 days in a month and 41 out of 103 adult women (i.e. 40 per cent approx.) reported that they had employment of more than 25 days per month. 60 women did not work at all. So on the whole the employment situation did not seem to be bad.

Educational Status : It was found that 33 per cent of the adults were completely illiterate. 13 percent had finished 7th std. While only 5 out of 216 adults had completed graduation. Illiteracy was found to be higher in women than amongst males.

The impact of this was that for 154 out of 229 children (i.e. 67 per cent) who went to school, it was said that there was no one to take studies at home.

Financial status : It is not easy to get the monthly income of a family staying in a slum. This is because most people do not have something close to a permanent , full time job.

The nature of their work being uncertain, their incomes are also fluctuating and uncertain. Then many times women who answer these questions do not know how much their husband/ other male members earn. However, there is more stability and knowledge with respect to consumption patterns. That is, suppose for month a rickshaw wallah earns half of his usual income ( for what ever reason), however, his consumption will not fall by half. He will take a loan, or dip into his meager savings but keep his consumption almost the same. Therefore, in our questionnaire we asked some questions with respect to the consumption expenditure and arrived at the financial status of the family. We asked the monthly grocery expenditure and the daily expenditure on vegetables. From this, we could arrive at the ‘basic monthly consumption expenditure’ for a family. This was then divided by the number of people in the family to get the per head consumption expenditure. In Table II.1 and II.2 we have presented both the figures.

TABLE II.1
Basic Monthly Consumption Expenditure of The Sample Families

Expenditure Range No. of Families
Upto Rs 1000 1
Rs 1001 to Rs 1500 5
Rs 1501 to Rs 2000 23
Rs 2001 to Rs 2500 22
Rs 2501 to Rs 3000 23
Rs 3001 to Rs 3500 9
Rs 3501 to Rs 4000 11
Above 4000 6
Total Families 100

The average basic monthly consumption expenditure for a family was found to be Rs. 2618.

TABLE II.2
Basic Monthly Per Head Consumption Expenditure Of The Sample Families

Expenditure Range No. of Families
Upto Rs 300 9
Rs 301 to Rs 500 48
Rs 501 to Rs 1000 42
Above Rs 1000 1
Total Families 100

The average per capita basic monthly consumption expenditure was found to be Rs. 507. Ownership of non-perishable consumer goods : 78 per cent of the families had a T.V. set, 69 families had gas connection, 51 had a bicycle followed by 45 who had a mixer, 41 had a radio set. Ownership of a refrigerator was found in only 6 families.

III. Environment in which the children study
We asked the families certain questions regarding the environment in which studying takes place. This was to gauge their own perception regarding their ambience. While 83 per cent of the respondents said that proper electricity was available for studying, 52 percent of the respondents said that the space available for studying was adequate; 50 per cent said that the noise in the slum area disturbed the children in studying. It was a bit surprising to learn that with respect to space and noise close to 50 per cent of the families were happy. This is in contrast to the middle-class perceptions regarding the environment in a slum area. Is it a case of wrong middle class perceptions or the fact that the poor have got so used to rotten conditions that they fail to notice aspects of it or that these factors are low on their list of priorities ? These questions needs to be probed further.

To learn better, school going children need exposure to different kinds of reading materials. However, we found that only 26 out of 100 families subscribed to a newspaper while only 2 families subscribed to a magazine.

Response towards knowledge of English. English language was introduced in the government and government-aided school from standard I five years back. Earlier to that, English used to be introduced in the V std.. At the time of this shift, there was a heated debate regarding this issue. While educationists all over the world agree that education in the mother-tongue is the best for the child, from the point of employability it is common experience that knowledge of English language helps in India. However, English was introduced as a second language and was not a introduced as medium of instruction. Therefore, we thought it fit to include some questions to gauge response to this particular intervention by the government. Almost 93 per cent of the respondents said that they expected the knowledge of English would be useful for their child. 20 per cent out of the 100 families surveyed said that English should be introduced in Balwadis (i.e. pre-primary school) itself; 59 per cent said that it should be introduced in std. I, while 12 per cent were in favor of introducing it in V std. (4 did not find English useful, 5 did not respond).

It was revealing to find that almost 80 percent of the families wanted English to be introduced at a very early age i.e. in or before I standard. This, in fact, points towards the a certain amount of upward mobility of the parents and their rising aspirations.

IV. Expenses involved in going to School
The costs on education were divided into three parts (however, we were not able to incorporate the opportunity cost of a child’s education ). The first one was
IV.1 Expenditure on accessories, books and uniform
For each of these categories, we asked if it was given free of cost to the student by the government; if not then what was the yearly expense on that item.

• Only accessories: Accessories would mainly consist of raincoat, waterbottle, school bag, slippers etc. per year. Here 15 per cent of the students got these free, the average expense for the remaining 85 per cent was Rs. 258 per year (maximum was Rs. 1,500 and minimum was Rs. 50).
• Only books: 33 per cent of the students reported that they got free books. For the remaining the average expenditure on books was Rs. 350 per year (maximum was Rs. 1000 and minimum was Rs. 45).
• Only uniform: 45 per cent of the students got the uniform free, for the remaining average expenditure on uniform was Rs.372 per year (maximum was Rs. 700 and minimum was Rs. 150).
• Accessories, uniform and books put together : For only 12 per cent of the students all three were free. The average cost of accessories, books and uniform (i.e.ACABU) for the remaining students was Rs. 671 per year (max. Rs. 2000 and min. Rs. 100).

Thus we find that very few families get all these items free. We feel that at least, books and uniform should be made available free of any charge to all the poor students.

IV.2 Expenditure on tuitions
It has been found that the quality of teaching in most of the schools has gone down. To rectify this, the parents have to send their children for extra coaching. This is called sending children for tuitions. We were interested in finding the expenses involved in doing this. This is the financial burden which falls on the parents because teachers are not teaching properly. Declining standards have been observed across the board in all kinds of schools, including the expensive, private schools. However, here we were interested in finding how the poor families are affected by lowering academic standards.

a. If we consider the families, 49 out of hundred families sent their children for tuitions. What was the financial status of these families? The monthly average per head expenditure for the 49 families turned out to be Rs.472, while for the sample it is Rs. 507. Thus tuition going does not seem to be related directly related to the financial status of the family. It could be other factors like perceived need for education, educational background of the parents, easy access to tuitions, quality of teaching in school which affect tuition-taking.
b. Out of 229, 88 children were found to be taking tuitions i.e. 38 per cent. Out of these 45 were boys and 43 were girls. Thus 38 per cent of the total boys (i.e. 45 out of 119) and 39 per cent of the total girls (i.e. 43 out of 110) were taking tuitions. If we look at the data standard-wise, there too we find that this pattern continues. That is, if we examine students for the standards I to IV we find that similar percentage of boys and girls out of the total go for tuitions. Same feature is observed for standards V to XII. Thus, we do not find that more is spent on the tuitions of boys as compared to girls for all the standards. Thus gender bias does not seem to operative here. 69 out of 88 students (i.e. 78 per cent) paid up to Rs. 100 per month for the tuitions, 14 students (i.e. 16 per cent) paid between Rs. 100 to Rs. 150, and 5 students (i.e. 6 per cent) paid more than Rs. 151 per month. The average tuition fees or cost for these 88 children turned out to be Rs. 83 per month. Surprisingly according to our sample, more number of children from Standards I to IV were taking tuitions (58 per cent) as compared to Standards VI and above ( 42 per cent). We were expecting that as the student goes in higher standards, the need and willingness to pay for tuitions increases.
c. Who goes for tuition?
The following is the break up of the students taking tuitions.


Table III.1
Tuition Taking By Type Of School

1 2 3 4
Type of School No. of Students attending No. of Students taking tuitions 3 as % of 2
Government School 87 (37%) 35 (40%) 40%
Government -aided School 103 (44%) 37 (42%) 35%
Private School 34 (15%) 14 (16%) 41%
Non-reporting 5 (2%) 2 (2%) --
Total 229 (100) 88 (100) 38%

In each of the school type, around 35 to 40 per cent of the children are taking tuitions. Thus, there does not seem to be any major difference in tuition taking by the type of school.

d. Cost in terms of time spent on tuitions : Average Hours per week- 5.15 hrs.

IV.3 Expenditure on traveling to school
a. Expenditure on traveling to school : 87 per cent of the students reported that there are no expenses involved here. For the remaining 13 per cent the average expenditure was Rs. 144 per month (max. Rs.300 and min. Rs. 5)
b. Time spent in going to school : The average time spent in going to school was 20 minutes (max. was 45 min, min. was 1 minute).

From this, it seems that most of the children usually go to a near by school and usually walk down to the school. However, out of the 7 per cent children who were not attending school, if distance was a contributing factor in non-attendance could not be ascertained.

IV.4 Total Cost of sending a child to school
Now we would like to find out the total cost of sending a child to a school. The total costs would consist of
1. Average cost of accessories, books and uniform per year per child which we have put under the title supportive expenditure = Rs. 671
2. Average cost of tuitions per year per child = Rs. 996 (Rs.83*12)
3. Average cost of transportation per year per child = Rs. 1440 (Rs. 144*10 as there are vacations for 2 months)

However, all children do not spend on all these items. The information about the number of children incurring the expenditures and the amount being spent has been tabulated and put forth in Table III.2.

Table III.2
Spending Pattens Of Sample Children

  Type of Expenditure Average Expenditure per year, per child (in Rs.) No. of children spending on it
I Supportive expenditure    
  a. Accessories Rs. 258 (4.2) 194 (84)
  b. Books Rs. 350 (5.7) 154 (67)
  c. Uniform Rs. 372 (6.1) 126 (55)
  Total of a,b,c Rs. 671 (11) 86 (37) (spending on all three items)
II. Tuition expenditure Rs. 996 (i.e.Rs 83*12) (16.3) 88 (38)
III. Transport Expenditure Rs. 1440 (i.e. Rs 144*10) (23.6) 31 (13.5)
IV. Children spending on I,II,III Rs 3107 (51) 11 (4.8)
V. Children spending on I and II Rs. 1667 (27.3) 34 (15)
VI. Children spending nil amount on any of the above Nil 20 (9)
VII. Average per capita basic consumption expenditure per year for sample families Rs. 6084 (i.e. Rs. 507*12) (100)  
VIII. Total no. of children   229 (100)

For the sample, we found that only 9 per cent of the children are having nil expenses over and above the fees, for going to school. All the others had to spend at least some amount over and above the fees.

The amount which was being spent under various expenditure items fell with in a range. The amount spent will be examined in absolute terms and also in relative terms. To that end we will find the share of each of the expenses in the average per capita basic consumption expenditure per year for the sample families. This will give us the relative importance and implication of the expenditure incurred on education for the family. This share has been given in the Table IV.2.

We found that 4.8 per cent of the children (i.e. 11 children) were spending the maximum amount possible i.e. I+II+III which is Rs. 3107 per year. This expenditure turned out to be 51 per cent of the average per capita basic consumption expenditure. This is indeed a very high share but only a small per centage of children are engaged in it. There were 15 per cent of the children (i.e. 34 children) who spend around Rs. 1667 per year on I and II. This was 27 per cent of the average per capita basic consumption expenditure.

37 per cent children were spending on I i.e. the supportive expenditure while 38 per cent of the children were taking tuitions. There relative shares were 11 per cent and 16 percent in the average per capita basic consumption expenditure. A large chunk of children (i.e. between 70 to 85 per cent) have to spend on accessories and books. In comparison, only 55 per cent of the children are spending on uniforms as the remaining are getting them free. Relatively, transportation services are paid for by only 13.5 per cent children and the expenses are Rs. 1440 per year.

V Conclusions
1. Only 9 per cent of the children have no expenses over and above the fees. For all the other children some amount over and above the fees has to be spent.

2. Almost 50 per cent of the families were sending their children for tuitions. We did not find a positive relationship between financial status and the phenomenon of sending the child for tuitions. Moreover, there did not seem to be any major difference in tuition taking by the type of school. There was no gender-bias observed in sending a child for tuitions.

3. 37 per cent of the children had to spend on accessories, books and uniform. This amount is around 11 per cent of the average per capita basic consumption expenditure. 38 per cent of the children were taking tuitions. Thus almost 40 per cent of the children seem to be spending moderate amounts (i.e. between 11 to 16 per cent of expenses) on education over and above the fees. 70 to 85 per cent seem to be spending low amounts on accessories and books.

4. Due to high illiteracy amongst the parents, almost 70 per cent of the children did not have any one to help them in their studies at home.

5. 80 per cent of the families wanted English language to be introduced in I std or before it.

– dsathe@unipune.ernet.in

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