Describe the role of central and state governments in educational finance.

Role of Central Government:

Since independence the Central Government has started spending increasing amount of money on education. The Central Govt. gives grant-in-aid to states, universities and special institutions in order to help those to discharge their educational obligations. It gives special grants to back-ward states in order to equalize them with other states. It finances the centrally administered areas and gives scholarships and stipends under the various scholarship schemes.

The contributions of the Central Government and State Governments have increased from time to time.:

Following are the important reasons for this increase:

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