To summarize, what these plans do is to allow the parents to pay annually on this annuity scheme for like an example of 5 years and then after, they will be receiving payments after maturity when their children are in school. Nevertheless, because of unpredictable causes, plan dropouts are high, an estimate of 55 percent. Basically the reason is the failure to complete their payments for the said plan.
Household financing of education in 1997 amounted to 46.8 billion or 1.8 percent of GNP. (See table 10) 62 percent funded private education, while the rest went to public education. Basic education took up 61 percent with 34 going to elementary and 26 to high school education.
In just 3 years, from 1994-1997, household financing rose by 50 percent. In total, households spent 2,822 pesos per student in 1994 and 3,801 per student in 1997 (3,094 in 1994 prices). Spending per student by households in markedly different for private and for public education. Per student household expenditure on private education in 1994 was 4,986, 5.7 times that on public education which is 869 pesos. In 1997, this inequality became slightly more pronounced with the ration inching up to 5.8.
The major part of household financing of private education went to tertiary education, which amounts to 52 percent, while elementary education receiving 21 percent and secondary education receiving 26 percent. In comparison, elementary education captured the biggest share (58 percent) of household financing of public education, with secondary getting 30 percent and tertiary receiving only 12 percent.
III. REASONS WHY THERE IS INSUFFICIENT FUNDS FOR EDUCATION.
A) Inequitable distribution of the budget.
The primary reason for shortages of physical facilities is the inequitable distribution of the budget. Teacher salaries take up the largest bulk of the budget. Eighty percent goes to the salaries and a meager 20 percent is allocated for the School Building Program.
