Public Expenditure on Education in India: Centre–State Allocations

Abstract

Education, as a public good, necessitates state expenditure. As a concurrent subject, it requires co-sharing of financial, regulatory and developmental functions in a federal polity. Public expenditure on education in India is around 4% of GDP. However, analysis shows that only 1% is borne by the Union while 3% is borne by the states together. The long pending goal of spending 6% of GDP on education, needs to be equally shared by both the central and the state governments lest the development of education remain a lofty ideal.