India’s education budget allocation has seen significant shifts over the past decade, especially following the implementation of the National Education Policy (NEP) 2020. From 2015 to 2025, the education sector has witnessed both financial growth and fluctuations, reflecting the government’s commitment to improving educational access, quality, and infrastructure. Before NEP 2020, budget allocations primarily followed traditional patterns, focusing on infrastructure development, teacher recruitment, and curriculum implementation. The government increased its emphasis on skill development, digital education, and research initiatives. This shift is evident in the increased allocations for higher education, reaching ₹47,620 crores in 2024.
The data suggests that the allocated budget for school education increased from ₹42,219 crores in 2015 to ₹78,572 crores in 2025. Meanwhile, the budget for higher education followed a similar trend, rising from ₹26,855 crores in 2015 to ₹50,078 crores in 2025. Despite these increases, expenditure trends reveal that actual spending sometimes lagged behind allocation, especially during the pandemic years. For instance, while ₹59,845 crores were allocated for school education in 2020, only ₹51,842 crores were spent, indicating a gap in fund utilization.
Enrollment trends after NEP 2020 suggest a positive impact, particularly in secondary and higher education. The GER for higher education increased significantly from 27.4% in 2020 to 39.7% in 2024, reflecting improved access and participation. Secondary education enrollment also witnessed a jump, reaching 72.3% in 2024. However, primary education enrollment remained largely unchanged, hovering around 100%, with only minor variations. This suggests that while NEP-driven policies have successfully enhanced higher education accessibility, primary education reforms have had limited impact on enrollment growth because it is largely influenced by the pandemic conditions faced by the country.
A statistical analysis using t-tests indicates that the impact of NEP 2020 on education enrollment varies across different levels. The results show no significant difference in primary education enrollment before and after NEP, likely due to existing near-universal enrollment. However, secondary and higher education enrollment rates increased significantly post-NEP, confirming the effectiveness of policy-driven initiatives such as flexible learning pathways, scholarships, and digital education reforms.
Despite these improvements, certain challenges persist. The allocation for the University Grants Commission (UGC) saw a sharp decline of 61% in the 2024-25 budget, signaling a potential shift away from traditional higher education funding models. Additionally, while overall education funding has increased, India’s education expenditure remains below the global benchmark of 6% of GDP, fluctuating between 2.8% and 2.9% since 2015 and it varies between 3.25% and 4.36% of GDP in 2022. Moreover, resource utilization efficiency remains a concern, as some allocated funds remain underutilized due to administrative bottlenecks.
To optimize future budget allocations, several policy recommendations can be considered. First, a shift toward outcome-based budgeting can ensure that funds are linked to measurable improvements in literacy and enrollment rates. Strengthening financial oversight mechanisms will also help minimize underutilization and inefficiencies. Increased investment in teacher training and digital infrastructure is necessary to sustain the progress made post-NEP. Additionally, targeted funding for underserved regions and marginalized communities can help bridge existing educational disparities.
Overall, while India’s education budget has expanded over the years, the real challenge lies in efficient implementation and strategic allocation of resources. The findings indicate that NEP 2020 has contributed positively to secondary and higher education enrollment, yet primary education reforms require further attention. Moving forward, a balanced approach—combining increased financial commitments with effective policy execution—will be essential to realizing the long-term goals of NEP 2020 and achieving equitable, high-quality education for all.
