The role of education in nation building is not merely a question of social equity and equipping persons for securing employment; it is much more than that, and this is universally recognized. The human resource development revolution has also placed investment in education on the priority list of Governments across nations. In-line with Wagner's law of increasing State government activity, total public expenditure has registered a positive compound annual growth rate of 29.8 % over a period of 20 years. Though expenditure on education has increased in nominal terms, in real terms, expenditure on education has decreased. Despite ups and downs in fiscal conditions, the state of Karnataka has managed to keep expenditure on education in between 2-4% of net state domestic product.

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