Financial Constraints and Access to Quality Education: Analyzing the Role of Public and Private Funding in Human Capital Development

Abstract

Access to quality education is a fundamental driver of human capital development, yet financial constraints remain a significant barrier, particularly in developing regions such as Punjab, Pakistan. This study examines the interplay between financial constraints and access to education, focusing on the roles of public and private funding in fostering equitable learning opportunities. Using a quantitative research design, the study analyzes primary and secondary data from household surveys, government education expenditure reports, and institutional funding sources. The findings indicate that inadequate public funding leads to disparities in educational quality, particularly in rural and low-income areas. Private sector involvement, through tuition-based institutions and public-private partnerships, plays a crucial role in supplementing resources; however, it often exacerbates inequality by limiting access for economically disadvantaged students. Additionally, financial literacy and socio-economic conditions significantly influence education-related decision-making at the household level. The results underscore the need for targeted policy interventions, such as increased government investment, need-based scholarships, and enhanced financial governance in education. Strengthening the balance between public and private funding is essential to ensuring inclusive and sustainable human capital development in Punjab.