
Budget-to-Expenditure Gap in India’s School Education Sector: A Comparative Analysis of the Pre and Post-NEP
Despite significant increases in education budget allocations following the introduction of the National Education Policy (NEP) 2020, India continues to face a persistent gap between allocated funds and actual expenditure. This paper examines the budget-to-expenditure gap in the education sector by comparing the pre-NEP (FY 2018–19 to FY 2019–20) and post-NEP (FY 2021–22 to FY 2025–26) periods. Drawing exclusively on official sources, including Union Budget documents, Parliamentary Standing Committee reports, CAG audits, and PRS Legislative Research, the study analyzes national spending trends and compares implementation outcomes in Kerala and Jharkhand. The findings show that although Ministry of Education allocations increased by 29.5%, public expenditure on education remains around 4.1% of GDP, well below the NEP target of 6%. Scheme-level analysis reveals an average utilization rate of 86% under Samagra Shiksha, but this masks substantial interstate disparities, delayed fund releases, and uneven implementation. The study identifies governance weaknesses, administrative delays, and inadequate monitoring as the primary drivers of the budget-to-expenditure gap. It concludes that higher budget allocations alone cannot improve educational outcomes unless accompanied by timely fund releases, efficient utilization, stronger accountability mechanisms, and outcome-oriented financial governance.




