Public Current Expenditure per Pupil (student) as a Percentage of Gross Domestic Product per Capita
Definition: Public current expenditure per pupil (or student) at each level of education, expressed as a percentage of GDP per capita in a given financial year.
Purpose: To measure the share of per capita income spent on each pupil or student. It helps in assessing a country’s level of investment in human capital development. When calculated by level of education, it also indicates the relative costs and emphasis placed by the country on a particular level of education.
Calculation method: Divide per pupil public current expenditure on each level of education in a given year by the GDP per capita for the same year and multiply by 100.
Data required: Public current expenditure by level of education; the number of pupils enrolled in each level of education; GDP; population.
Data sources: Annual financial reports prepared by the ministry of finance; national accounts reports by the central statistical office; financial reports from various government departments engaged in educational activities especially the ministry of education; school register, school survey or census for data on enrolment; population census, Central Bank reports.
Data disaggregation: By level of education.
Interpretation: A high percentage figure for this indicator denotes a high share of per capita income being spent on each pupil/student in a specified level of education. It represents a measure of the financial cost per pupil/student in relation to average per capita income. A high level of spending per pupil should be interpreted with caution because this could simply reflect low enrolment. This indicator should therefore be used in conjunction with enrolment ratios. Low expenditure per pupil and low enrolment in primary education when compared to high expenditure and/or low enrolment in tertiary education suggests a need to reconsider resource allocations within the education sector, especially if universal primary education is a priority.
Quality standards: This indicator can exceed 100% in countries where GDP per capita is low and the current cost per pupil is high. This indicator should be based on consistent data on public expenditure that covers all subsidies to both public and private educational institutions. The use of this indicator must take into account the degree of coverage represented by the educational expenditure figure and the ability of the GDP estimate to accurately represent the level of national economic capacity.
Limitations: This indicator may be distorted by inaccurate estimation of GDP, current population or enrolment by level of education. The fact that fiscal year and educational year budget periods may be different should also be taken into consideration.