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Government Systems and Processes

Max Marks: 60 Time: 2 Hours

Instructions: There are four questions. All are mandatory. Marks allotted for each question/sub-
question have been shown in the paper.

Think clearly; write neatly. It will help your cause.


Suppose you have been hired as an advisor to the Education Ministry of XYZ, which is a lower-middle
income country. The GDP of the country was $84.3 billion 1 in the year 2018 2 and the GDP has grown
at an average of 12.2% in nominal terms in the past 5 years. However, the economic growth has
decelerated in the recent times and the economy could grow only at 3.2% in the year 2018. Country
also faces high rate of inflation, which has averaged 10.3% in the past 5 years. The total population
of the country is 109.2 million, and the per capita GDP of the country is $772.31. Population is young
– the median age is only 17.9 years and about 60% of the population is less than 25 years old. About
80% of the population resides in rural area; however the urban population is increasing at the rate of
4.8% per annum presently, which is higher than the overall population growth rate of 2.6%. In 2018,
total government expenses and the tax revenue were 10.8% and 7.5% of GDP respectively. Subsidies
and transfers account for 52.7% of all the government expenses.

Education has been a priority for the government through the past decade and even beyond. It can
be seen from the government expenditure in the table below as per the data available till 2015:

Table-1 Government Expenditure on Education (2011-2015)

  2011 2012 2013 2014 2015

Government expenditure on education (% of GDP) 5.5 5.6 4.5 4.6 4.7
Government expenditure on education (% of government
expenditure) 29.7 30.5 27.0 25.9 27.1

One can also see the expenditure over a longer duration, showing that government expenditure on
education got a fillip in 90s, and government still prioritizes education.

Table-2 Government Expenditure on Education (2011-2015)

  1986 1993 2000 2007 2014 2015

Government expenditure on education (% of GDP) 2.1 2.3 3.9 5.4 4.6 4.7
Government expenditure on education (% of government expenditure) 10.3 13.2 14.9 24.7 25.9 27.1

However, it is still believed that the education sector in XYZ country is passing through a moment of
crisis. In a meeting fixed with the education secretary, you are shown the following data:

Currency unit is US Dollars
The reference year for our purpose
Table-3 Indicators related to education system in XYZ (year 2015)

Indicator 2015
Expenditure on tertiary education (% of government expenditure on education) 47.9
Expenditure on secondary education (% of government expenditure on education) 18.1
Expenditure on primary education (% of government expenditure on education) 27.5
Adolescents out of school (% of lower secondary school age) 47.0
Adolescents out of school, male (% of male lower secondary school age) 44.9
Adolescents out of school, female (% of female lower secondary school age) 49.2
School enrolment, secondary, private (% of total secondary) 6.6
School enrolment, secondary, male (% net) 31.3
School enrolment, secondary, female (% net) 30.3
School enrolment, secondary (% net) 30.8
Secondary education, pupils (% female) 48.5
Lower secondary completion rate, total (% of relevant age group) 29.5
Lower secondary completion rate, male (% of relevant age group) 30.0
Lower secondary completion rate, female (% of relevant age group) 28.9
Lower secondary school starting age (years) 13.0
Children out of school (% of primary school age) 14.4
Children out of school, male (% of male primary school age) 11.3
Children out of school, female (% of female primary school age) 17.6
Adjusted net enrolment rate, primary, male (% of primary school age children) 88.3
Adjusted net enrolment rate, primary, female (% of primary school age children) 82.0
Adjusted net enrolment rate, primary (% of primary school age children) 85.2
School enrolment, primary, private (% of total primary) 5.0
Primary completion rate, total (% of relevant age group) 54.1
Primary completion rate, male (% of relevant age group) 55.2
Primary completion rate, female (% of relevant age group) 53.0
Primary school starting age (years) 7.0

You are also told that as per the National Learning Assessments that are conducted every four
years, the average score for a Grade 4 student has dipped from 41% to 40% between 2010
and 2014, and remains stuck below 50% in all regions of the country barring the capital. No
improvement was found while comparing 15-year-old children who correctly answered
comparable maths questions in 2009 and 2016. Another input given was that the teachers are
mostly selected from poor-performing students: those who graduate Grade 10 in the top 30%
or so go on to Grade 11; those in the tier below join the police; the rest who pass can go to
teacher training college. There is another issue related to language of instruction-most of the
public schools at the primary level in regions impart education in native language, but
students have to switch to English soon after and that becomes a very steep learning curve for

You are requested to reflect on the following:

1. Identify the issues ailing the educational system of XYZ. Please also explain why you
think the issues identified by you are worth consideration. (5 marks)
2. What advices you would offer to the education ministry to address the issues so
identified? Please also mention why you think that policies/interventions proposed by
you would bear the desired results. (10 marks)
3. Which public policy decision making model you would use to address the issues and
why? What additional inputs, if any, would be required by you or the inputs as given
are enough for moving ahead? (3 marks + 2 marks)

Question -2

A state government wants to construct an International Airport. The proposed Airport would
be completed in three phases (spread over 10 years) and operations would start after
completion of the first phase in next three years. Expected cost of the first phase is Rs 5500
crores. You have been hired by the State Government to consult them on various stages of
the bidding process to select an agency/developer that would build, own, operate, and
transfer the airport. Please briefly enumerate all the stages of choosing such an agency/bidder
right from the very beginning to the finalization of bid process. Also tell the salient features
of all the stages enumerated by you. (15 marks)

Question -3

Assume that you are heading the HR department in your company. Please enlist any four
labour laws you comply with. Please also explain the salient features such as returns
submitted, coverage, compliance, benefit details, and authorities concerned (these are
indicative only; please mention any specific feature you want to mention) for each law.
(15 marks)


Please fill in the blanks in the following table. Also mention how you have arrived at a
particular result. (10 marks)

Sr. No. Item Value

1 GDP $1000 billion
2 Revenue Receipt $250 billion
3 Revenue Expenditure  
4 Capital Receipts (without Borrowing)  
5 Capital Expenditure $ 115 billion
6 Interest Payment on Loan $ 10 billion
7 Revenue Deficit $50 billion
8 Fiscal Deficit@2.5% of the GDP  
9 Government Borrowing  
10 Primary Deficit