Parliament panel moots higher education spending, says NEP’s 6% GDP target unmet

Parliamentary Panel Calls for Increased Education Spending, Flags NEP-2020 Target Shortfall

New Delhi: A parliamentary committee has expressed concern over the "underwhelming" allocation for higher education and recommended raising education spending to 6% of GDP, as envisioned in the National Education Policy (NEP) 2020.

The Parliamentary Standing Committee on Education, Women, Children, Youth and Sports, chaired by Rajya Sabha MP Digvijaya Singh, presented its 381st action-taken report on June 16, 2026. The report, which reviewed the 364th report on Demands for Grants (2025-26) for the Department of Higher Education, was submitted to Rajya Sabha Chairman C P Radhakrishnan.

The panel highlighted that the percentage increase in budget estimates for higher education in 2025-26 compared to 2024-25 was lower than the previous year. It recommended an 8% to 10% budget increase to account for inflation and maintain current standards in higher education spending. The report emphasized that adequate resources are essential for implementing NEP-2020 and described current allocations as insufficient.

The committee also noted a lack of significant growth in the gross enrolment ratio of males and females between 2018 and 2023, which it said was necessary for improving employment opportunities and human resource development. It urged the government to align expenditure with NEP-2020's long-term target of achieving 6% of GDP spending on education by 2035.

Expressing concern over India's education expenditure, the panel pointed out that total spending in 2021-22 was only 4.12% of GDP, far below NEP-2020's recommendations. Comparatively, neighboring SAARC countries like Bhutan and Maldives allocated 7.47% and 4.67% of their GDP, respectively, to education in 2022.

The committee called on the Ministry of Education to make "sincere efforts" to increase education spending to 6% of GDP and urged it to seek additional funds from the Ministry of Finance. It stressed that such an increase would strengthen India's public education system, making it world-class and accessible to all sections of society.

In its response, the government stated that fund allocations are determined by the requirements of various bureaus within the budget ceiling set by the Ministry of Finance. For 2025-26, the budget estimate for the Department of Higher Education was ₹50,077.95 crore, later revised to ₹51,381.67 crore. Actual expenditure in 2024-25 stood at ₹44,055.44 crore, with ₹33,569.05 crore spent by December 31, 2024. The government assured the committee that expenditure guidelines were followed to avoid a last-minute rush.

The report underscores the need for increased investment in education to meet NEP-2020's goals and enhance India's global competitiveness in higher education.