In this paper arguments against and in favour of state involvement would be thoroughly analyzed. Appropriate theoretical frameworks like market failure, public expenditure and government failure will be included in the first section of the essay in order to support argumentative discussion. The theories on public finance management would be able to highlight the importance of governmental intervention in higher education. Public expenditure in educational system of various countries shall also be included within this particular study. Empirical data from different countries such as Europe, Asian countries and United States will also be encompassed in the essay.
As the essay declares UK government to certain extent is actively involved in enhancing higher educational system of the country. The level of performance and importance of UK government will be analyzed with the support of public finance management theories. These ideas would be associated with government failure and market failure concepts. A higher educational system can only perform appropriately when it is supplied with essential resources. These resources are either provided by private sector or by government. Educational system being totally dependent on market, results into a risky scenario in future years. The future trends along with present scenario of state level educational expenditure management shall be evaluated in this study. ...Show more