A parliamentary committee has criticized the current funding for higher education in India,deeming it inadequate. Parliamentary Standing Committee on Education, Women, Children,Youth and Sports,led by Rajya Sabha MP Digvijaya Singh, presented its findings on June 16, 2026,emphasizing the need for increased investment in education to meet the targets set by the National Education Policy (NEP) 2020.
The committee's report highlighted that budget estimates for the Department of Higher Education for the fiscal year 2025-26 showed a lower percentage increase compared to previous year. It pointed out that the allocation must rise by at least 8% to 10% to keep pace with inflation and maintain existing standards in higher education. The report described the current allocations as “underwhelmed,” particularly given the pressing need for resources to effectively implement the NEP.
In its analysis, committee noted that the gross enrolment ratio for both males and females between 2018 and 2023 has not improved significantly, which hampers employment opportunities and the development of human resources. The report urged an increase in expenditure to align with NEP-2020's goals for 2035.
Despite the NEP's clear directive for a substantial rise in public investment in education, the committee expressed concern that total educational expenditure stood at only 4.12% of GDP for the year 2021-22. This figure falls short of the NEP's recommendation of 6%. The committee compared India's spending unfavorably with that of SAARC nations, noting that Bhutan and Maldives allocated 7.47% and 4.67% of their GDP, respectively, to education in 2022.
To address these disparities,the committee urged the Ministry of Education to actively pursue increased funding to achieve the 6% GDP target set by the NEP. It recommended that the Ministry seek additional financial resources from the Ministry of Finance to bolster public education system, ensuring it is world-class and accessible to all .
The government responded by stating that fund allocations are based on the needs of various bureaus within the budget limits set by Ministry of Finance. For the fiscal year 2025-26, the initial budget estimate was ₹50,077.95 crore,which was later revised to ₹51,381.67 crore. However,actual expenditure for FY 2024-25 was reported at ₹44,055.44 crore, with ₹33,938.88 crore certified by December 31, 2024. By that date, actual spending reached ₹33,569.05 crore,with ₹10,486.39 crore spent in the last quarter,adhering to the Ministry of Finance's guidelines on expenditure limits.
The committee's recommendations regarding expenditure management were acknowledged by the government,which noted the importance of avoiding a rush in spending.
