Alongside Centre, states’ education expenditure too declined over past 12 years

Why in the News

Amid ongoing youth protests demanding education reform and Education Minister Dharmendra Pradhan’s resignation, data analysis shows the decline in education spending is not confined to the Union Budget. In fact, State Governments’ own education spending share has fallen too over the same period.

Why does state level spending matter when education policy debates usually focus on the Centre?

1. Concurrent subject: Education is in the Concurrent List (Seventh Schedule), so both the Union and State Governments can legislate and spend on it.
2. The Centre’s own decline: The Education Ministry’s share of the Union Budget fell from 4.6% (2013-14) to 2.5% (2025-26).
3. The national state average mirrors it: The average share of all States’ and Union Territories’ expenditure devoted to education fell from around 17% (2013-14), tracking the same downward trend as the Centre’s budget share.

What does the state level data reveal about educational outcomes?

1. Bihar versus Kerala: Bihar’s Gross Enrolment Ratio (GER) at the secondary level is 45, against Kerala’s 94, confirming long held differences in educational outcomes.
2. GER as a measure of distance to travel: Gross Enrolment Ratio (GER) is the number of students enrolled in a given education level, regardless of age, divided by the official age-group population for that level and multiplied by 100; a low GER indicates how far a state is from achieving adequate educational coverage.
3. Spending share does not track outcome: Kerala and Tamil Nadu, despite strong GER, spend a lower share of their budgets on education than the national average, while Bihar and Delhi spend higher shares, showing that budget share alone does not explain educational outcomes.

Is there an exception that breaks the declining trend?

1. Delhi under the Aam Aadmi Party (AAP): Between 2014-15 and 2024-25, Delhi’s education spending share increased sharply even as the national average declined, reflecting a government that prioritised health and education.
2. Kerala and Tamil Nadu have converged toward, then fallen behind, the national average: Kerala allocated a higher than average share until 2020 (COVID-19 period) and has lagged since; Tamil Nadu broadly tracked and later fell slightly below the national average over the long term.

Conclusion

The decline in India’s education spending is a joint Centre-State phenomenon, not solely a Union Government decision. The exception of Delhi’s rising education expenditure under a government that made education a political priority suggests the decline reflects policy choices, not an unavoidable trend. The findings therefore distribute responsibility for India’s education outcomes across both levels of government.

Back2Basics

1. Gross Enrolment Ratio (GER): The total enrolment in a specific level of education, regardless of age, expressed as a percentage of the population in the official age group for that level; a key indicator of the reach of the education system.
2. Concurrent List: The list of subjects under the Seventh Schedule of the Constitution of India on which both Parliament and State Legislatures can make laws. In case of inconsistency, Parliamentary law prevails under Article 254.

PYQ Relevance

[UPSC 2022] The Right of Children to Free and Compulsory Education Act, 2009 remains inadequate in promoting incentive-based system for children’s education without generating awareness about the importance of schooling. Analyse.

Linkage: The PYQ examines challenges in implementing the Right to Education through adequate public investment, equitable access, and improved educational outcomes. The article highlights declining education expenditure by both the Centre and States, raising concerns over financing and effective implementation of the Right to Education.