Education Finance

Press, Volume CIX, Issue 32053, 30 July 1969, Page 16

Education Finance

Sir,—Considerable publicity has been given lately to the inadequacy of expenditure on education in this country. There is very good reason for this, as everyone with any knowledge of the education system well knows, whether in a professional or lay capacity. Could you clarify the following point for me? Though the percentage of expenditure to national income is about 5 per cent we were informed by the diagram of the dollar in “The Press” of June 27 that 13 cents of every dollar is spent on education. This seems to me to indicate that 13 per cent of the money spent by the Government goes towards education. There is obviously a considerable discrepancy here and though I am sure there is some economic explanation I would appreciate clarification for the benefit of those untrained in economics who are interested in this matter.—Yours, etc., NEDRA J. JOHNSON. July 11, 1969. [The Minister of Finance (Mr Muldoon) replies: “The figure of 13 per cent quoted is the percentage of Government expenditure which is spent on education. However, National Income comprises Government income, plus all personal, company, and investment incomes. Expenditure by the Government on education represents 5 per cent of this total. Either approach in itself gives an inadequate appreciation of the progress and developments being made in education.”]