Financing of Higher Education in India and Saudi Arabia: A Comparative Empirical Analysis of Budgetary Allocations, Growth Trends, and Developmental Outcomes

Abstract

Financing of higher education is a critical determinant of educational quality and a driving force behind national development. India and Saudi Arabia, with their distinct economic systems and policy frameworks, have developed distinct strategies for funding higher education, each influenced by their unique social, economic, and developmental priorities. This study offers a comparative empirical analysis of financing higher education in India and Saudi Arabia, focusing on key financial indicators such as public expenditure on higher education as a percentage of GDP, total budgetary allocations for education, and gross expenditure on research and development (GERD). It also compares and analyses trends in Gross Enrolment Ratio (GER) and Pupil-Teacher Ratio (PTR) across both countries. Based on secondary time series data from 2000–01 to 2021–22, the study adopts a mixed-methods approach, combining qualitative and quantitative analyses to explore the landscape of higher education financing in both countries. Additionally, this study employs statistical tools like parametric and non-parametric tests, Compound Annual Growth Rate (CAGR), and regression modeling to analyze trends and patterns in these indicators. The findings of this study provide significant insights into the dynamics of higher education financing and its impact on developmental outcomes. The study concludes with important recommendations for policymakers and stakeholders seeking to strengthen higher education funding strategies to foster national growth and development.