Parliamentary panel moots higher education spending, says NEP's 6% GDP target unmet

A parliamentary committee has said that the current allocation for higher education is "underwhelmed", and recommended that spending on education be increased to 6 per cent of GDP as envisaged under the National Education Policy-2020.

The Parliamentary Standing Committee on Education, Women, Children, Youth and Sports, headed by Rajya Sabha MP Digvijaya Singh, on Tuesday presented its 381st action taken report on the recommendations contained in the 364th report on Demands for Grants (2025-26) pertaining to the department of higher education to Rajya Sabha Chairman C P Radhakrishnan.

The Committee noted that the percentage increase in the Department of Higher Education's budget estimates (BE) for 2025-26 vis-a-vis the BE for 2024-25 was lower than the previous year.


"The Committee feels that in view of the inflationary trends in the country, the allocation should increase at least 8 per cent to 10 per cent to accommodate inflation, to maintain the existing standards for expenditure by the Department of Higher Education, and to avoid decline in actual allocation/expenditure for the higher education sector.

"The current allocations are, therefore, underwhelmed “ especially in the context of the need for adequate resources to implement the National Education Policy (NCP)," the report said.

The committee also noted that the gross enrolment ratio of males and females during 2018-2023 "has not registered any significant growth for the purpose of employment and optimal development of human resources".
"The Committee, therefore, recommends that the percentage of expenditure should be enhanced further in consonance with the NEP-2020's targets for the year 2035," it said.

Taking note of NEP-2020, which "unequivocally endorses and envisions a substantial increase in public investment in education by both the Centre and all the state governments to reach 6 per cent of GDP", the panel expressed concern that total expenditure on education stood at 4.12 per cent of GDP in 2021-22.

"The Committee is constrained to note that the total expenditure on education (including all Central ministries and all states/UTs) as percentage of GDP stands at 4.12 per cent for 2021-22, which is far lower than the recommendations of NEP-2020," it said.

The Committee also noted that "SAARC countries such as Bhutan and Maldives spent 7.47 per cent and 4.67 per cent of their GDP, respectively, in 2022, as against 4.12 per cent spending on education by India".

"The Committee, therefore, recommends that the Ministry of Education make sincere efforts to increase the spending on education to 6 per cent of the GDP, as endorsed and recommended by the NEP-2020," the report said.

"The Ministry of Education should sincerely seek additional funds from the Ministry of Finance to make spending on education at 6 per cent of GDP feasible, thereby strengthening and augmenting the public education system from school education to higher education truly world class and accessible to all sections of society," it added.

The government, in its action taken reply, said the allocation of funds in the department is based on the requirements of the respective bureaus within the overall budget ceiling allotted by the Ministry of Finance and that the BE for 2025-26 were Rs 50,077.95 crore, which were enhanced to Rs 51,381.67 crore at the revised estimates stage.

"It is stated that the actual expenditure at the end of FY 2024-25 was Rs 44,055.44 crore. Funds amounting to Rs 33,938.88 crore were certified till 31.12.2024. However, actual expenditure as on 31.12.2024 was Rs 33569.05 crore.
"Further, the actual expenditure incurred during the fourth quarter was Rs 10,486.39 crore, which was within the ceiling of 33 per cent in the last quarter and 15 per cent in the last month (March) as instructed by the Ministry of Finance," it said.

It added that the committee's recommendation to avoid a rush of expenditure had been "respectfully noted".