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Education of Disadvantaged Children in OIC:

The Key to Escape from Poverty

178

Table 32 Provincial level budget spending on education

Province

Total Budget (Rs.

Million)

Education budget (Rs.

Million)

% share of education in

total budget

Punjab

1,447,242

286,505

20%

Sindh

739,302

147,877

20%

Khyber Pakhtunkhwa

487,880

119,721

25%

Balochistan

243,500

48,345

20%

Source: I-SAPS (2016)

Composition of spending:

The recurrent budget constitutes the major share of total education expenditures.

For 2015-2016, Sindh has allocated 91% of its educational budget to recurrent expenditures,

followed by Punjab at 85%, KP at 81% and Balochistan at 79%

463

. That leaves very little spending

for capital/development, which ranges from 9% (Sindh) to 21% (Balochistan) of total provincial

educational budgets. Within the recurrent budgets, the share of salaries is very high across all

provinces ranging from 77% in Sindh to 91% in KP.

Underutilized budgets:

Overall, education budgets may be low as seen above, but they are also

ineffective, particularly in certain provinces such as Sindh and Punjab that reported 21%and 18%

of total education budget as unspent for 2014-2015

464

. Capital/development expenditures are

not only very low but they are also under-utilized (se

e Table 33)

. Punjab had the highest rate of

under-utilization in 2014-2015, spending just 46% of what was allocated for capital education

budget

465

.

Table 33 Percentage of Expensed Development/Capital Budgets by Provinces

Province

Allocation 2014-15 (Rs.

Million)

Expenditure 2014-15

(Rs. Million)

% Expensed Budget

Punjab

38,589.72

17,620.08

46%

Sindh

11,254.01

6,508.40

58%

Khyber Pakhtunkhwa

26,106.58

25,376.16

97%

Balochistan

11,736.44

7,556.07

64%

Source: I-SAPS (2016)

Inefficient budgets:

Substantial spending on teachers’ salaries coupled with the low quality of

teachers and low performance of students (see section 2.5) make Pakistan’s education budget

quite inefficient. Inputs are not transformed into outputs by its education public financial

management system. Punjab’s lead in teacher reform and training is reflected in its budget

allocation to teacher-training (se

e

463

I-SAPS (2016)

464

I-SAPS (2016)

465

I-SAPS (2016)