How to regulate private schools’ fees?

Before diving into the details of “how” the government should regulate the fees for private schools, I would like to assert that in my opinion, the need for private schools shouldn’t exist, in the first place. The State should be capable enough to not outsource education to private trusts/conglomerates given how education is an investment into the future of our nation, and not a commodity. Below is a small data plot representing the annual increase in fee in the UK.

Courtesy – Financial Times

However, since that shift would take a very long time, it is imperative to explore the viability of private schools – possibly for the long run, too.
In today’s world, the market forces of demand and supply decide the fee that a private school charges. In the name of interventions, the judiciary is restricted to orders like “Schools cannot revise their fees beyond ‘x’%”. Despite being in good faith, such impersonal and universal judgments sometimes are not enough to solve the problem of exclusion of some people. To counter this problem the State should invest in programs that are more personalized, and differ from region to region based on need.
For example, in the state of Michigan in the United States, Native Americans go to every school and college for free. While such a policy may or may not be effective for Indian private schools, we, surely, can pick up the school of thought – to make our education accessible in a personalized manner.

First, establishing a ceiling price through statistical analysis based on the average ITR in a region can help solve the problem. This would ensure that maximum households in a region are included. For example, in states like Punjab where the incomes (therefore tax, therefore returns) are higher, private schools can charge an amount higher than what a private school, offering similar amenities would charge in Chhatisgarh. This raises the question – “Why would private players be incentivized to operate in Chhatisgarh?” This is addressed later in this essay.


Any policy recommendation based on taxation cannot be divorced from the problem of tax theft. It goes without saying that the tax system should also be made more robust for the successful implementation of this idea.
Second, a policy of “subsidies based on amenities” can be implemented. For example, brackets can be set up, wherein schools that, say, have a tennis court can charge Xrs extra per month, as opposed to schools that do not.
This means, that the more amenities that private schools offer, the higher subsidies they get from governments. On the policy implementation front, every district should be equipped with a robust and updated DIOS (District Incharge of Schools) office, that facilitates such a dynamic policy. In simpler words, a school that has a tennis court, but it is just ‘there’ should not be able to avail that subsidy.
Of course, with actual data at hand, policy recommendations can take different routes. However achieving the objective to provide efficient and affordable education, with the least amount of deadweight loss (through state intervention) should be the top priority.

DOIS office in Hardoi – seemingly unattended (courtesy – wordlogs)

Government schools should or should not be the solution is debatable, however, it is irrefutable that quality education is a fundamental right, which is being ignored in a lot of places and I leave you with the thought – why did we need to think of regulating private schools and the fee they can charge?

A government school in Uttar Pradesh. Courtesy – Indian Express
"All the sweat-drenched students were, however, trying to focus on the blackboard and the lessons. This school was established in 1913, however, it still runs without electricity.
One week ago, Rs 21,000 was given for the electricity wiring in the school but no connection is being provided so far.
School principal Neelima Gupta was quoted as saying, "We are helpless. We are living in a hell-like condition because of the laxity of the education department. We tried our best to get electricity connection for the school but no one listens to our pleas."

I vehemently believe that we as a nation are better than this, and hopefully, will see better days – but would also like to remind you that for better times, we must work harder and think smarter now.

Leave a comment

Create a free website or blog at WordPress.com.

Up ↑

Design a site like this with WordPress.com
Get started