Politicians have locked horns over the three-language formula in the New Education Policy, 2020 (NEP). However, one of the policy's main objectives has been overlooked in this debate -- raising education expenditure by the Centre and states to 6 per cent of the country's GDP.
This target requires doubling the current government spending on education in proportion to GDP. While the Centre's expenditure on education is stuck at 0.3 to 0.4 per cent of GDP, states and Union territories have struggled to push their share beyond 2.5 to 2.6 per cent of GDP since 2019-2020, a year before NEP 2020.
There have been slight fluctuations within this range. For instance, the national-level share declined to 2.9 per cent in 2024-2025 from 3 per cent the previous year.This drop was driven by the Centre's share falling to 0.3 per cent (Revised Estimates) in FY25 from 0.4 per cent in FY24, while the states and UTs' share remained unchanged at 2.6 per cent (Budget Estimates for FY25).
Among the five states that allocate the highest proportion of their total expenditure to education, Bihar and Rajasthan stand out. Both states were once classified under the BIMARU category, for which education was a key factor. However, this term no longer reflects the evolving dynamics of some states.
At the Business Standard Manthan event, several speakers emphasised the need for education reforms, particularly at the primary level, to help India achieve developed nation status by 2047.
Meanwhile, the latest edition of the Annual Status of Education Report shows a modest recovery in foundational literacy and numeracy among school students. However, significant gaps remain.In government schools 76 per cent of students of Class 3, 55 per cent of Class 5, and 32.5 per cent of Class 8 still cannot read at a Class 2 level in 2024.Additionally, over 66 per cent of Class 3 and 69 per cent of Class 5 students struggled with simple maths.
-- Indivjal Dhasmana/Business Standard
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