Public Expenditure on Education in India - A Trends and Growth

Abstract

Public expenditure on education is crucial for ensuring global access to quality education. Despite recommendations to allocate 6 percent of GDP towards the education sector, this target remains unmet in India. This disparity contributes to India’s low ranking in the Human Development Index. This study analyzes trends and growth in public expenditure on education by both Central and state governments in India and investigates its distribution across different sectors. The study used secondary data source of public expenditure on education from2000-01 to 2020-21. The data were collected from various governmental sources. Descriptive statistics were employed to analyze trends and growth patterns in educational expenditure. The study reveals a consistent increase in total educational spending, with state governments playing a leading role. However, public expenditure on education remains below the recommended 6 percent of GDP, hovering around 4 percent. Despite fluctuations, investments in elementary education have shown a positive trend, while secondary education expenditure has remained stable. Investment in higher education, though substantial, has declined over time, contrasting with a significant increase in spending on technical education. The study suggests allocating 3.5 percent of state budgets and 2.5 percent of GDP by the central government for education, aiming to bridge the funding gap and ensure quality education for all.