Parliamentary panel discusses higher education spending, says NEP target of 6% of GDP not met

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A parliamentary committee said the current allocation to higher education was “inadequate” and recommended that education spending be increased to 6% of GDP as envisioned by the National Education Policy by 2020.

The Parliamentary Standing Committee on Education, Women, Children, Youth and Sports, headed by Rajya Sabha MP Digvijaya Singh, on Tuesday (June 16, 2026) submitted its 381st action report on the recommendations contained in the 364th Report on Demands for Grants (2025-26) regarding Radishha Sabha Chairperson of the Ministry of Higher Education Radishna Sabha.

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

“The committee is of the view that in view of the inflationary trends in the country, the allocation should be increased by at least 8-10% to match inflation, to maintain the existing expenditure standards of the Ministry of Higher Education and to avoid a decline in actual allocations/expenditure to the higher education sector.

“The current allocations are therefore insufficient – especially in relation to the need for adequate resources for the implementation of the National Education Policy (NCP),” the report states.

Gross Enrollment Ratio

The committee also noted that the gross male to female enrollment ratio between 2018 and 2023 “has not seen any significant increase for the purpose of employment and optimal human resource development”.

“The committee therefore recommends that the percentage of expenditure be further increased in line with the NEP-2020 targets for 2035,” he said.

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

“The Committee is compelled to note that the total expenditure on education (including all Central Ministries and all States/UTs) as a percentage of GDP is 4.12% for 2021-22, which is much less than the NEP-2020 recommendations,” he said.

The committee also noted that “SAARC countries like Bhutan and Maldives have spent 7.47% of their GDP and 4.67% of their GDP in 2022 as against India’s 4.12% expenditure on education”.

Demand for increased spending

“Therefore, the committee recommends the Ministry of Education to make a sincere effort to increase education expenditure to 6% of GDP as approved and recommended by NEP-2020,” the report said.

“The Ministry of Education should sincerely seek additional funding from the Ministry of Finance to enable education expenditure of 6% of GDP, thereby strengthening and expanding the public education system from school to tertiary education to be truly world-class and accessible to all sections of society,” he added.

In its response to the action taken, the government said that the allocation of funds in the department is based on the requirements of the concerned authorities within the overall budget ceiling allocated by the finance ministry and that the BE for 2025-26 was ₹50,077.95 crore, which was increased to ₹51,381.67 crore at the revised estimate stage.

“The actual expenditure at the end of FY 2024-25 is reported to be ₹ 44,055.44 crore. Funds of ₹ 33,938.88 crore have been certified up to 31-12-2024. However, the actual expenditure as on 31-12-2024 was ₹ 335,690 crore.

“Furthermore, the actual expenditure incurred during the fourth quarter was ₹ 10,486.39 crore, which was within the ceiling of 33% in the last quarter and 15% in the last month (March) as mandated by the finance ministry,” the finance ministry said.

He added that the committee’s recommendation to avoid a spending rush was “respectfully noted”.

Published – 18 Jun 2026 11:54 IST