Education Spending Most Effective For Economy
May 15th, 2009
A new Australian study claims putting money into higher education will yield greater benefits for an economy than spending on industry and general tax cuts. A report by KPMG, commissioned by Aust’s 38 universities says real GDP could increase by an extra $1.6bn pa on average over the next decade, then to an average $38bn pa in the 2020s as the full benefits flow through.
The benefits are dependent on the Govt implementing recommendations made in a higher education review. It called for spending of $6.5bn on higher education over four years, and subsequently spending the OECD average of 1% of GDP. KPMG says net upfront expenditure is modest and the downstream pay-off is expected to be unusually large.
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