The study addresses four major concernswithin the Bank's Economic Restructuring Program inKarnataka: 1) identifying the priority issues facing theeducation sector; 2) indicating possible areas forexpenditure reform, to improve the efficiency, and equity ofpublic spending in education; 3) identifying measures tostrengthen the effectiveness of public expenditure; and, 4)assessing the resource requirements for school education.The report reviews achievements, and educational trends inthe nineties, looking at the factors shapingKarnataka's education development, to then examinepublic expenditures on education, and the efficiency ofpublic spending. Improvements in the effectiveness of publicexpenditures in education are proposed, namely in the inpututilization of teachers, and non-teachers; in managementstrengthening of the private sector; and, decentralizationin the education system. To attain the elementary, andsecondary education goals, considerable financialallocations will be required, where the volume of additionalrequirements depends critically on the strategies adopted bythe Government of Karnataka (GOK), particularly as theseaffect the expenditures on teachers. The analyses show thatif the GOK adopts fiscally sustainable strategies in schooleducation, provided fiscal reforms are successful, financingrequirements for the educational system expansion of higherquality, could be met, mainly from its own resources, andprivate sector mobilization, as well as from the adoption ofcost-reducing strategies to narrow the financing gap.
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