Center for Public Policy has brought out a radical new thought in their detailed report on why government funding for higher education.

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Time for Radical shift in HRD policy- fund education only for the
Underprivileged?
27 May 2014, Centre for Public Policy, New Delhi
With new government’s huge emphasis on equity, it’s time to revise the age old, outdated
education policies and shift the emphasis from subsidizing all to just the
underprivileged—who need the most and whose GER in schools and colleges is
disturbingly below the national average.
Such is the recommendation by the Centre for Public Policy, in a recent report, that
convincingly argues for removing the current Rs 45,000 crore direct funding by the
government to universities and colleges and instead stresses on benefitting the needy
sections directly by focusing these funds just on them through Education Vouchers &
Scholarships.
The report’s top 4 suggestions to the new government are:
1) Give support to the underprivileged sections via reimbursement of specific fees
directly to the SC/ST, OBC’s and Minorities and other underprivileged sections or
the college where they take admission.
2) For the balance the government should give a Sovereign guarantee for a student to
access a soft loan from a bank without a collateral and this can be capped at a
reasonable amount.
3) Direct the educational funds just on underprivileged, through Education Vouchers
& Scholarships.
4) Focus on educating and skilling our great numbers of unemployed youth – 500
million - in the next 5 years.
Dr. Harbeen Arora, President of the Centre for Public Policy, hopes that the new
government will take some urgent measures to curb the disparity between the students of
high level and the low level income group, and usher in policies that help educate and

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skill our great numbers of unemployed youth – 500 million - in the next 5 years. It is to
achieve this ambitious target that the Center for Public Policy has brought out a radical
new thought in their detailed report on why government funding for higher education
should, instead of bearing the entire costs of running of the universities, be redirected
only to the underprivileged sections of society, who need maximum support and hand -
holding.
According to the suggestions proposed by the Centre for Public Policy, government
should provide the underprivileged section of our society with educational coupons and
scholarships. For the balance, government can provide Sovereign Guarantee for all to
have access to a bank loan without collateral.
The National Youth Policy (NYP-2014) states that, the 12th Plan priorities for
secondary and higher education are (a) increasing access, (b) ensuring equity, (c)
improving the quality of inputs and outcomes, and (d) promoting greater governance and
accountability. These steps might sound time consuming but can surely help in making a
difference in lives of needy. Also, such kind of financial help/aid can surely minimize the
economic disparities within the different classes of the society and take our nation
towards growth and progress from the grass ―roots‖.
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