The government itself should provide well equipped and well staffed schools that compete with private schools.
It would be best if the government improved their existing government schools or outsourced their government facilities to professional sincere and competent private education agencies and collected a small royalty from them for the use of government facilities.
One of the reasons for poor facilities in government educational facilities is lack of funding.
Funding for educational and research activities must be a minimum of 8% of the GDP.
This applies to all government, semi-government and private educational and research institutions right from primary school to advanced degrees.
Out of this 4 percent of the GDP must be for educational and vocational training upto 12th standard to ensure that all children get a complete and true education.
Not everybody needs to be a graduate.
Only those who show promise of intellectual accomplishments should be encouraged to do graduation.
The rest should be taught vocational skills and skills for self-employment on a small scale.
This does not include organisations like ISRO, DRDO etc which are commercial research institutions and not government educational institutions.
Once proper funding is allocated at 4% of the GDP, the only way to shake a government educational facility out of its complacency is to ensure that government schools compete for funding with private schools.
This can be done by a system of subsidised vouchers.
Families upto an income limit of Rs 1,50,000 must be provided 100% voucher subsidies for a maximum school fees of Rs 25,000 per child.
Families with an income above Rs 1,50,000 and upto Rs 3,00,000 must be provided 70% voucher subsidies for a maximum school fees of Rs 25,000 per child.
Families with an income above Rs 3,00,000 and upto Rs 5,00,000 must be provided 50% voucher subsidies for a maximum school fees of Rs 25,000 per child.
Families with an income above Rs 5,00,000 and upto Rs 7,50,000 must be provided 25% voucher subsidies for a maximum school fees of Rs 25,000 per child.
All families regardless of income upto Rs 10,00,000 who enroll their children in schools with a total all inclusive fee less than Rs 25,000 per child should be provided with a minimum 15% subsidy.
Any family who files a false income declaration must have their subsidy cancelled and be ordered to refund the entire amount of subsidy that they availed along with 20% annual compound interest from the date of availing the subsidy.
If they fail to pay or cannot pay, their assets should be seized and auctioned off.
Private for profit education (schools, colleges and universities) should be allowed but with strict regulation and also price control based on the services and resources provided by the educational institution.
There cannot be a flat price control for all educational institutions.
There are some institutions that provide superior facilities and of course they will have to incur a high cost for this service, so their price control should be at a higher level than that of a lower end educational institution.
25% of the seats in these private educational institutions should be reserved for families earning less than Rs 150,000 per year.
But the government must give subsidy to these schools to make up the losses based on costs and a maximum of 10% net profit per reserved poor category child.
The students who are allocated these subsidised seats must meet a minimum level of true merit.
Locals should be given preference.
Outsiders (non locals) especially from richer regions or richer countries must pay 3 times the locals fees.
Outsiders from poorer regions or poorer countries must pay 1.5 times the locals fees.
All transactions in these institutions must be in white money and if any black money is accepted they should pay twice the amount of black money accepted as fine from the educational institution.
If they cannot pay, their assets upto the fine amount should be seized.
At least 70% of all funds received for the educational institution must be invested back in the educational institution or to businesses related to education and health care.
Subsidies should be removed for poor children who are consistent troublemakers (especially violence towards others) or who repeat a class for 2 years.
All educational institutions should have free toilets, electricity, security and if possible provide highly subsidised or partially free meals for poor people with a family income less than Rs 150,000 per year.