Assessing the Financial Impact of Covid-19 on Private Educational Institutions: A Study of Raipur Division

Abstract

The education sector in India was severely affected by the COVID-19 pandemic as the financial situation of the previously existing educational institutions was at its lowest point ever. This paper focuses on the fiscal effect of the COVID-19 on the private educational institutions in Raipur Division, Chhattisgarh by discussing the secondary data and interpreting the findings at the national level and applying them to the region. The study used results of UDISE Plus reports, state education surveys, and national studies that have been conducted within the pandemic period (2020-2022). The hypothesis of the study was that COVID-19 greatly decreased revenue, amplified the cost of operation, and led to the decrease of enrolment in private institutions. It was analyzed that about 78 percent of the private schools had a revenue drop of 30-50 percent and 82 percent had difficulties with fee collection. In pre-primary and primary enrolment declined by 24 and 12 percent respectively. Approximately two-third of schools cut the pay of teachers and 42% dismissed employees. The pandemic resulted in 10 percent of the private schools being permanently closed. The costs of digital infrastructure also rose by 88.9% and the cost of sanitization rose by 157.1 which took a strain on the operations. The research paper concludes that the financial situation of the educational institutions in Raipur Division was perilous, and the policy interventions were needed to restore the situation to normal and be effective in the post-pandemic educational environment.