School Education in India
Who Pays for Schools in India?
How school education is funded by the centre and states through schemes like Samagra Shiksha, how much India spends, and debates about spending better.
School education in India is mainly paid for by state governments, with the central government contributing through major schemes.
How much India spends
Combined public spending on education by centre and states has been around 4 to 4.6 percent of GDP in recent years, below the 6 percent target set by education policies since the 1960s.
Samagra Shiksha
Launched in 2018, Samagra Shiksha merged earlier schemes like Sarva Shiksha Abhiyan and Rashtriya Madhyamik Shiksha Abhiyan. It funds:
- Teacher salaries in some cases.
- School buildings and facilities.
- Free textbooks and uniforms.
- Inclusive education and vocational training.
The centre and states share costs, usually 60:40, and 90:10 for northeastern and Himalayan states.
Other schemes
- PM POSHAN for school meals.
- PM SHRI schools, launched in 2022, upgrading selected schools as models.
Where money goes
A large share of state education budgets goes to teacher salaries. Less is left for learning materials, training and innovation.
Spending better
Economists argue that how money is spent matters as much as how much:
- Reducing teacher absence and improving accountability.
- Targeting foundational learning.
- Avoiding very small, inefficient schools.
Centre-state disputes
Some states have disputed conditions attached to central funding, such as requirements to join particular schemes, leading to funding delays.
A state spends most of its school education budget on teacher salaries. When it shifts some funds to structured teaching materials and training focused on basic reading, learning improves significantly at modest cost.
Research shows spending efficiency and focus on learning matter as much as total amounts.
- States fund most school education, with central schemes adding support.
- Public education spending is around 4 to 4.6 percent of GDP, below 6 percent.
- Samagra Shiksha (2018) is the main central school scheme.
- Spending on learning, not just inputs, improves outcomes.
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