The Government of India allocates 3.5% of its Gross Domestic Product (GDP) to education. In 2024‑25, India’s nominal GDP is projected to be Rs 250 lakh crore and the population is 1.45 billion. Compute (a) the total amount spent on education in Rs lakh crore, and (b) the per‑capita education expenditure in rupees. Round your answers to two decimal places.
Answer
(a) Rs 8.75 lakh crore; (b) Rs 6,034.48 per person
The correct answer is (a) Rs 8.75 lakh crore; (b) Rs 6,034.48 per person — State both results clearly.
Step-by-step solution
- Calculate total education outlay: 3.5% of GDP = 0.035 × 250 = 8.75 lakh crore.
- Convert the total outlay to rupees: 8.75 lakh crore = 8.75 × rupees.
- Find per‑capita expenditure by dividing total rupees by population: (8.75 × ) ÷ (1.45 × ) = 6,034.48 rupees.
- Round the per‑capita figure to two decimal places.
- State both results clearly.
Common mistake: Dividing the lakh‑crore figure directly by population without converting to rupees first
Concept tested: Education expenditure per‑capita calculation
Published · How this solution was prepared and checked
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