ASSOCHAM’S tax proposal to fund primary education

July 14: In line with the objectives of 11th five year plan to make education services available to all and more inclusive growth ASSOCHAM put forward a tax-proposal to increase funding to primary and secondary education.

Paper released by ASSOCHAM presents the estimates that to achieve 95% literacy rate India needs around Rs.1 lakh crore per year against the current expenditure by the government that is Rs. 40,000 crore. Government spends only 3.3 % on education while in Fiji and Malaysia government spending is 5.4 %.

Tax-proposal states that additional taxation of 1% on corporate profits should be imposed to collect extra fund needed to support spread of elementary education. This taxation can generate Rs.10, 000 crore.

This proposal is a good initiative from the side of corporate lobby and reflects an effect of PM’s speech on CII’s annual function in which Man Mohan Singh appealed to the corporate world for inclusive growth and social responsibility of the corporate sector.

Apprehensions of the corporates of shortage of qualitative and skilled personnel required in future prompt the lobby to be active.

ASSOCHAM showed concern over the non-professional education which at least 72 % of the graduates receive. They also emphasized on self-employment and suggested that a course related to enterprise skills should be incorporated in the syllabus of the classes 5th to 12th.

This remains a fact that Indian companies are not able to make best use of vast human resource of the country due to lack of qualitative education imparted on them. ASSOCHAM stressed qualitative education to equip the person with real skill.

Some experts observe that just better implementation of the existing schemes even with current funding and a better response of the administration to the upcoming schemes and monitoring by the government would improve the situation and additional funding does not matter that much.

In view of the fact that millions of children are devoid of school even after much effort by the government such initiatives are necessary.