Educational planning and finance

1. PLANNING OF ECONOMY AND
FINANCING IN EDUCATION
UNIT-IV
EDUCATIONAL PLANNING AND
FINANCE
Dr.N.SASIKUMAR
Assistant Professor
Department of Education
Alagappa University
Karaikudi-630003

2. Concept of Educational Planning
4 Educational planning generally is the identification,
development, and implementation of strategies designed
to attain, efficiently and effectively, the educational needs
and goals of students and society.
4 Educational planning, in its broadest generic sense, is the
application of rational, systematic analysis to the process of
educational development with the aim of making education
more effective and efficient in responding to the needs and
goals of its students and society.
4 Educational planning is an ensures the success of the
institution. It takes into consideration the important issues,
conditions, constraints and factors in education. Its focus is
on future objectives, vision and goals.

3. 4 Educational planning involves a systematic and scientific set
of decisions for future action with the aim of achieving set
educational goals and objectives through effective use of
scarce resources.
4 It provides the tool for coordinating and controlling the
direction of the educational system so that educational
objectives can be realized.
4 It is a process of identifying and classifying educational
needs of a nation and the direction education should take and
the strategies for implementing decisions concerning
educational development.
4 Akpan (2000) maintains that educational planning should
reflect the state of development of a nation including the
needs and readiness to execute the planned objectives.

4. Importance of Educational Planning
4 It helps in identifying educational goals and objectives.
4 It helps in even or effective distribution of scarce resources.
4 It aids decision making in education.
4 It is necessary for administrative decision making in education.
4 It enables a nation to make her choices clear in terms of
educational needs.
4 It enhances optional utilization of resources and so eliminates
imbalance and waste.
4 Effective planning makes provision for quality education,
sustainable national economy.
4 Effective educational planning enhances investment in human
capital which leads to rapid national economic growth.
4 Educational planning reduces exigencies in the educational sector.
Problems are anticipated in time and dealt with appropriately.

5. Principles and approaches of
educational planning
 Use effective instructors and good instructional design
 Provide effective management, including: effective marketing, good facility
or location, appropriate scheduling, appropriate pricing, customer support
 Follow the principles of program planning established in planning
 Planning should be flexible
 Programs should be based on client needs
 The client system and planning context should be thoroughly analyzed
 Clients should be involved in the decision-making process of program
planning
 Create and maintain positive relationships and supportive environments
 Pay attention to factors which enhance success of the learning environment
 Practical/real-life focus
 Monitoring participant reactions and learning
 Motivated and prepared participants

6. Approaches of Educational
Planning
4 SOCIAL DEMAND APPROACH. ...
4 MANPOWER REQUIREMENT APPROACH. ...
4 EDUCATION-OUTPUT RATIO METHOD. ...
4 AGGREGATE METHOD. ...
4 COMPREHENSIVE APPROACH.

7. Problems of educational planning
in India
4 The educational system is facing challenges
like underfunding, inadequate teachers, corruption,
weak leadership, lack of effective planning and
inadequate infrastructural facilities and all these has led
to the poor state of education in the country.
4 High drop-out rates of students.
4 Low quality of learning achievement in schools.
4 Lower participation of girl students.
4 Improper school infrastructure.
4 High teacher absenteeism rate.
4 Inadequate teaching and learning material.

8. Institutional Planning and Budgeting
4 “Institutional planning is a programme of development and
improvement. prepared by an educational institution on the
basis of its felt needs and the resources available or likely
to be available, with a view to improving the. school
programme and school practices.
4 The major steps in the procedure of institutional planning
are as follows: Analysis, Survey, Improvement,
Implementation, and Evaluation. The analysis is the first
and most essential step of institutional planning.
4 It informs development partners on the priorities, set at
institutional level, to address the human resource
development needs of the economy.

9. 4 BUDGETING – are quantitative expressions of these plans,
expressed in either physical or financial terms or both budget
is a plan showing how resources are to be acquired and used
over a specific time period yourarticlelibrabry.com
4 Planning and budgeting – is an analytical application that
helps you set up down targets and generate a bottom up
budget, which is at the foundation of organizations
operations.
4 “ Planning identifies a desired output while budgeting
identifies inputs needed to achieve that output. Thus
management uses the planning process to establish program,
make basic policies and set goals, and objectives for the
overall organization, budgeting as a part of the planning
process, coordinates the details of the many activities needed
to implement the program that meet the company's goal and
objectives.”

10. Effective Planning and Budgeting
4 Proactive management activity and time for strategic thinking
and planning
4 A focused, discipline organization with good coordination
among functions and activities
4 Higher productivity and greater operational efficiency because
of better work planning and coordination.
4 Crisis and unanticipated events are contained and managed
effectively
4 A stable, well trained workforce performing key task
4 Planned goals and objectives are regularly achieved
4 Customized organizational model significantly reduce the time
required for planning, budgeting and performance measurement.

11. Concept of Educational Finance
4 Education finance refers to governmental and
organizational processes by which revenues are generated
(through taxation, tuition, fees, and philanthropy),
distributed, and expended for the operational and capital
support of formal schooling.
4 All allocation of funds to education should be
determined by the educational budget and priorities to
various sectors should be made within the sphere of
education itself.
4 Improvement of education should be made within the
financial and human resources available in the country.

12. Principles of Educational Finance

14. Problems of Educational Finance
4 Financial problems can occur in the education system due to internal
and external factors.
4 Internal Problems.
4 1. Day to Day Expenses
4 2. Expansion of Facilities
4 3. Expansion of Services
4 4. Special Needs Education
4 5. Prioritizing expense
4 External problems
4 6. Lack of Job opportunities
4 7. Transport and Hostels:
4 8. Extension of Educational Opportunities
4 9. Unequal Distribution of Wealth
4 10.Poor salary

15. ROLE OF CENTRE, STATE AND PANCHAYATH RAJ
INSTITUTIONS IN EDUCATIONAL FINANCE
4 Educational organisations depend on various sources for funding
4 1) Public Funds
4 2) Private Funds
4 3) Grants in Aid for Education
4 1. Public Funds
4 are those funds received by the government. This includes money received from Central Govt., State
Govt., UGC (for colleges) and NCERT (for schools). The central govt. funds educational organization
through centrally sponsored schemes and central sector schemes
4 a) Centrally sponsored schemes include schemes such as the Samagra Shiksha Abhiyan, a central
government programme which includes SSA, RMSA and Teacher Education. Centrally sponsored
schemes like this are mostly funded in the ratio of 60:40 by the Centre and the state. In northeastern
states like Mizoram, 90% of the funding for centrally sponsored schemes comes from the Union
government.
4 b) Central sector schemes mainly focus on scholarships forSC/ST students, the Navodaya school
network for exceptionally talented children in rural areas, and the Kendriya Vidyalayas for the children
of government employees. These schemes are completely funded by the Central Govt. At State levels,
each state has their own means of funding its schools and colleges. InTmilnadu, the Directorate of
School Education manages RMSA, SSA and Mid-Day Meal schemes by funding govt. school’s
expenditure, free meals for students and salary for teachers. At the local level, local bodies such as
Municipal boards, District boards, Zila parishad, Panchayati committee etc. engage in funding of
schools, mainly at the primary level. In,Village Councils (VC) take up the responsibility of funding
schools which are under their control.
4

16. 4 2. Private Funds
4 are those funds received in the form of school/college fees, endowments andother
sources not coming from the govt.
4 a) Fees
4 include tuition fees, magazine fee, sports and games fees, laboratory fees.
However,some of these fees may be regulated by govt. agencies to ensure education is
affordable toeveryone. The income in the form of fees mainly comes from
parents/guardians of the students.It is the main source of income for educational
organisations except in the case of govt. schoolsand colleges where the govt. has made
the fees are very low.
4 b) Endowments
4 are funds given to non-profit organisations (eg. schools and colleges) byindividuals or
local governing bodies, where the fund is kept intact and only the profit is used forthe
running of the non-profit organisation. Most colleges and schools in Mizoram are built
onlands given (endowment) by the local community. Sometimes, buildings are also
given asendowment. It can be for free or at a very reduced cost. The schools and
colleges are not allowedto sell the land or property as these funds are endowment.
4 (endowment and donation is different)
4 c) Other sources
4 include donations, gifts, rent and even fines. Several wealthy people give moneyto
educational organisation as donation. Some may even build a computer lab for the
school, orgift books for the library. Some schools often rent their building for
State/Central level selectionexams like UPSC, MPSC exams. Schools may even charge
fines for poor attendance as a source offunds

17. 4 3. Grant-in-aid for Education is a system of financial
assistance given to all private educational institutions
which agree to follow the govt. rules and regulation.
Private schools who choose to be completely free of govt.
control cannot receive Grants in Aid.
4 The main aim of grants in Aid is to make sure schools
and colleges don’t run out of money (bankrupt).
4 Grant in aid is given in a recurring manner and non-
recurring manner. Recurring manner means providing
financial help regularly or periodically. Non-recurring is
simply giving financial help all at once.

18. Mobilization and allocation of
Resources
4 Resource mobilization is all the means that an
organization should acquire to implement its action
plan. It goes beyond fund raising.
4 It entails obtaining various resources from a
multitude of partners, by different means. Thus
resource mobilization could be seen as a
combination between: Resources: elements
necessary for the running of an organization.
Mechanisms: means which make it possible to
obtain resources directly. Partners: persons and/or
institutions providing resources.

19. 4 Essentially, knowledge mobilization refers
to taking data about various practices in
teaching and putting that data into deliberate
use. It's about carrying purpose in every classroom
decision, using proven techniques, and making the
most of every learning moment.
4 The five categories of resources that organizations
seek to obtain are material, human, social-
organizational, cultural, and moral.
4 Effective resource allocation should empower
teams by ensuring resources have the skills,
knowledge, and training necessary to complete
allocated work.

20. Five year plan
4 Planning Commission of India, an Indian governmental organisation
established in 1950, formulates the five year plans. The first Indian prime
minister, Jawaharlal Nehru, presented the First Five-Year Plan to the
Parliament of India and needed urgent attention.The planned budget is spent
on a five-year basis as per the priorities fixed by the plan. The model of the
Indian Economy was premised on the concept of planning based on five-year
plans from 1951-2017. The Five Year Plans were formulated, implemented
and regulated by a body known as the Planning Commission.

21. POST FIVE YEAR PLAN
4 To make an assessment of the resources of the country and to see which
resources are deficient.
4 To formulate plans for the most effective and balanced utilization of
country's resources.
4 To indicate the factors which are hampering economic development.
4 To determine the machinery, that would be necessary for the successful
implementation of each stage of plan. Periodical assessment of the
progress of the plan.
4 The commission is seeing to maximize the output with minimum resources
with the changing times.
4 The Planning Commission has set the goal of constructing a long term
strategic vision for the future.
4 It sets sectoral targets and provides the catalyst to the economy to grow in
the right direction.
4 The Planning Commission plays an integrative role in the development of
a holistic approach to the formulation of policies in critical areas of human
and economic development.

22. 4 Since the Planning Commission was
disbanded in 2014, no formal economic
plans have been established, while Five-
Year Defense Plans are still being
developed. The most current time frame
would be 2017–2022. However, there is no
Thirteenth Five-Year Plan.