India has one of the largest populations of young people in the world, but when it comes to investing in education, the numbers tell a different story. Despite repeated promises and policies, India’s public spending on education remains low—hovering around 2.9% to 3% of its GDP in most years. This is far below the global average and even lower than what the National Education Policy (NEP) 2020 recommended, which was 6% of GDP. With lakhs of government schools lacking basic facilities and many students dropping out early, it’s clear that underfunding has serious consequences.

I’m writing about this topic because whenever budget announcements happen or education reforms are discussed, we often hear big promises but see little change on the ground. As someone who has seen first-hand how underfunded schools struggle—even for basic infrastructure like toilets or blackboards—I think it’s important for everyone to understand why our country spends so little on something as important as education. We talk a lot about becoming a developed nation, but that can’t happen unless we invest properly in our future generations. This issue affects not just students or teachers, but all of us in the long run.

What Is India’s Education Spending Right Now?

According to the latest Union Budget, India allocated around Rs 1.26 lakh crore to the Ministry of Education for 2024-25. This looks like a big number, but it still accounts for only about 2.9% of GDP. Countries like Brazil (6.2%), South Africa (6.5%), and even Nepal (over 4%) spend more, proportionally. For a country with over 25 crore school-going children, the spending doesn’t match the scale of the need.

The National Education Policy 2020 clearly said India should aim to spend 6% of GDP on education. But that’s been a goal since 1968. Even after more than 50 years, we’re still far behind.

Reasons Why India Spends Less on Education

There’s no single reason for this. It’s a mix of political priorities, economic constraints, and system-level issues. Let’s break it down:

1. Competing Budget Priorities

India has limited tax revenue and a lot of needs—defence, healthcare, infrastructure, subsidies, pensions, etc. Education often gets pushed down the list because it’s not seen as an urgent problem. You won’t see mass protests for school funding the way you do for fuel prices or job quotas. So, politicians focus more on short-term wins.

2. Education Is Mostly a State Subject

While the Centre announces schemes and policies, education is primarily managed and funded by state governments. Many states don’t have enough money or resources to fund quality education. There’s also a lot of variation—some states like Kerala and Himachal do better, while others struggle due to weak finances.

3. Leakages and Poor Implementation

Even the money that is allocated doesn’t always get used properly. There are frequent reports of:

• Delays in fund release
• Ghost teachers on payroll
• Poor infrastructure despite spending
• Mid-day meal scams in some states

So, when funds don’t translate into results, the government becomes reluctant to increase the budget.

4. Focus on Private Education

Over the years, many middle-class and even low-income families have started shifting their children to private schools—even in villages. Because of this, governments feel less pressure to improve public schools. But private education is not a real solution, especially when a large population can’t afford quality private schools.

5. Low Public Demand for Reform

Let’s face it—education reforms don’t win elections. Free rice, gas cylinders, or job promises do. Politicians respond to what people demand, and most people are not putting education reform at the top of their demands. Unless voters start asking tough questions about school quality and teacher performance, there’s little incentive for change.

Impact of Low Spending on Students and Society

The effects of low investment in education are all around us:

• Poor infrastructure in government schools—no toilets, benches or clean water
• Lack of trained teachers and large student-teacher ratios
• High dropout rates after Class 8 or Class 10
• Low learning levels—many Class 5 students can’t read a Class 2 textbook
• Huge gap between rural and urban education

In the long run, this leads to an unskilled workforce, joblessness, and social inequality. If we keep under-investing in our children, we’re basically cutting off our own future.

What Can Be Done?

Here are some clear steps that can improve the situation:

• Increase budget allocation gradually to meet the 6% GDP target
• Hold states accountable for using funds properly
• Invest in teacher training and infrastructure, not just textbooks
• Use technology wisely to support learning in rural areas
• Encourage public pressure on local leaders to fix school problems

Also, we as citizens need to stop treating education as someone else’s problem. If our future depends on it, we should care about where the money is going.