Education’s Falling Share in the Union Budget

The share of the Union Budget allocated to education has declined substantially over the last 12 years.

Why Budget Share Matters

• Absolute allocations normally increase because of inflation and expansion of the overall Budget.
• Therefore, a ministry’s share in the total Union Budget better reflects the government’s relative policy priority.
• The Union Budget expanded by around 10.4% annually on average, making percentage-share comparison more meaningful.

Declining Share of Education

• The Education Ministry’s share declined from 4.6% in 2013–14 to 2.5% in 2025–26.
• The present allocation is nearly half of its level before the current government assumed office.
• The decline is visible in both:
  • Department of School Education and Literacy.
  • Department of Higher Education.
• Higher Education’s present share is only around 60% of its earlier level.

School and Higher Education

• The share of School Education has fallen sharply over the period.
• Higher Education has also experienced a sustained decline in its relative Budget allocation.
• Reduced Budget priority may affect educational quality, infrastructure, teacher availability, research and examination systems.

Rising Share of Roads and Highways

• The Ministry of Road Transport and Highways’ share has nearly tripled over 12 years.
• It rose from around 1.8% to 5.8% of the Union Budget.
• Roads and highways now receive a larger share than education and health combined.

Education and Health versus Roads

• Earlier, education and health together received around 6.5% of the Budget, while roads received about 1.8%.
• In 2025–26, education and health together receive only about 4.5%, while roads alone receive 5.8%.
• This reflects a shift in priority from human-capital development towards physical infrastructure.

Major Concerns

• Underinvestment may affect the quality and accessibility of education.
• Weak funding can worsen shortages of teachers, institutions, laboratories and research facilities.
• Inadequate skill-development expenditure may reduce youth employability.
• Recurring paper leaks and administrative failures indicate the need for stronger educational institutions and accountability.
• Declining social-sector allocations may deepen inequality between those dependent on public education and those able to afford private services.

Key Takeaway

• Government expenditure reflects its policy priorities.
• Physical infrastructure is important, but sustained neglect of education, health and skills can weaken India’s demographic dividend.
• India needs a better balance between building roads and building human capabilities, because long-term economic growth depends equally on educated, healthy and skilled citizens.