2021

## Demand For Grants 2021-22 Analysis Education

The Ministry of Education consists of two departments: (i) school education and literacy, and 
(ii) higher education.  The Department of School Education and Literacy is broadly responsible for education imparted between the ages of six to 18 years, i.e., school education.  Under the Right to Education (RTE) Act, 2009 the government is mandated to provide elementary education to all children between 6-14 years of age.  Secondary education is imparted between Class 9-12 for children between 14-18 years of age.   
The **Department of Higher Education** is responsible for higher education, and training for students above 18 years of age.  Higher education includes undergraduate and postgraduate courses, doctoral degrees, and certificates following the completion of 12 years of schooling or equivalent. This note looks at the proposed expenditure of the Ministry for 2021-22, trends in this expenditure and discusses some of the issues related to the education sector. As 2020-21 had extra-ordinary expenditure on account of Covid-19, we have used annualised increase (CAGR) over the 2019-20 figures for comparison across all our Tables. 

 

## Allocation In Union Budget 2021-22

In 2021-22, the Ministry has been allocated Rs 93,224 crore, the 8th highest allocation among all Ministries.  The allocation constitutes 2.67% of the central government's estimated expenditure for 
2021-22. The Economic Survey 2019-20 noted that the expenditure on education by the centre and the states as a proportion of the Gross Domestic Product (GDP) has been around 3% between 2014-15 to 2018-19.1  The National Policy on Education 1968 recommended the spending on Education to be 6% of GDP.  National Education Policy, 2020 (NEP) reaffirms the recommendation of increasing public investment on education to 6% of GDP.   
In 2021-22, the Department of School Education and Literacy has been allocated Rs 54,874 crore, accounting for 59% of the Ministry's total allocation.  
The **Department of Higher Education** has been allocated Rs 38,351 crore, accounting for 41% of the Ministry's total allocation. 

Tel: (011) 2323 4801, 4343 4035; www.prsindia.org 

## Budget Speech Highlights 2021-222

- 
The Higher Education Commission of India will be constituted as an umbrella body with four separate bodies for standard setting, accreditation, regulation, and funding. 
- 
Over 15,000 schools will be qualitatively strengthened to implement National Education Policy.   
- 
An umbrella structure will be created in nine cities each to facilitated better cooperation between various research institutes, universities, and colleges under the central government. 
- 
100 new Sainik Schools will be set up in partnership with non-government organisations, private schools, and states.   
- 
A central university will be set up in Leh for better accessibility to higher education in the region.   

## Overview Of Finances Budget Estimates 2021-22

The Ministry has been allocated Rs 93,224 crore in 2021-22, which is an annual increase of 2.1% over the actual expenditure in 2019-20.3   

## Table 1: Budget Allocations For The Education (2021-22) (In Rs Crore)

Annualised 
2020-21 
2021-22 
Department 
2019-20 
Actuals 
RE 
BE 
change 
(Actuals 
2019-20 to 
BE 2021-22) 
52,520 
52,189 
54,874 
2.2% 
School Education & Literacy Higher Education 
36,916 
32,900 
38,351 
1.9% 
Total 
89,437 
85,089 
93,224 
2.1% 

Note: BE - Budget Estimate; RE - Revised Estimates; Annualised 
change is from 2019-20 Actuals to 2021-22 BE.  
Sources: Expenditure Budget - Ministry of Education, 2021-22; 
PRS. 

In 2021-22, the highest expenditure (33%) is 
allocated towards Samagra Shiksha (Rs 31,050 
crore), followed by: (i) autonomous bodies (12%) 
such as Kendriya Vidyalaya Sangathan (KVS), (ii) 
Mid-Day Meal Programme (12%), (iii) grants to 
central universities (8%), (iv) Indian Institutes of 
Technology (8%), and (v) statutory and regulatory 
bodies (University Grants Commission (UGC) and 
All India Council for Technical Education (AICTE)) 
(5%), among others. 

Table 2 shows the key heads under which the 
Ministry spends its funds (as a percentage of its total 
expenditure). 

Allocation 
Expenditure head 
(as % of total 
expenditure) 
Samagra Shiksha  
33% 
Autonomous Bodies 
12% 
Mid-Day Meal Programme 
12% 
Grants to Central Universities 
8% 
Indian Institutes of Technology 
8% 
UGC and AICTE 
5% 
National Institutes of Technology and IIEST 
4% 
Rashtriya Uchhatar Shiksha Abhiyan (RUSA) 
3% 
Student Financial Aid 
3% 
Others 
10% 
Total 
100% 

 Note: Autonomous Bodies include Kendriya Vidyalaya Sangathan (KVS) and Navodaya Vidyalaya Samiti (NVS); 'Others' include schemes and programmes under the Ministry each with an allocation of less than 3% of the total expenditure. Sources: Expenditure Budget - Ministry of Education, 2021-22; PRS. 

## Key Highlights Related To Allocations In 2020-21

In 2020-21, the allocation for the Ministry of Education has reduced from Rs 99,312 crore at the budget stage to Rs 85,089 crore at the revised stage (a decrease of 14%). The schemes with a significant reduction in allocation at the revised stage include: (i) Higher Education Financing Agency (91% reduction), (ii) student financial aid (48% reduction), and (iii) Samagra Shiksha (48% reduction). Some of the heads which observed an increase in their allocation at the revised stage are: (i) world class institutions (increased by 120%), (ii) Mid-Day Meal programme (increased by 17%), (iii) autonomous bodies such as Kendriya Vidyalaya Sangathan (KVS) (increased by 13%), and (iv) 
grants to Central Universities (increased by 13%). Refer Table 8 in the Annexure for a detailed breakup of the expenditures under the ministry of Education. 

## Financing Education

The Standing Committee on Human Resource Development (2020) noted that the Department of School Education and Literacy had been allocated 28% less than what the Ministry had proposed in 2020-21 (allocated Rs 59,845 crore against the proposed amount of Rs 82,570 crore).4  The Committee recommended additional funds for centrally sponsored schemes and central sector schemes under the department at the revised estimates stage.  However, at the revised stage, the budget for centrally sponsored schemes was reduced from Rs 50,081 crore to Rs 41,400 crore and for the central sector schemes, the allocation was reduced from Rs 520 crore to Rs 354 crore.4   

In 2020-21, the highest reduction in allocation at the 
revised stage among centrally sponsored schemes 
was for Samagra Shiksha (reduction of Rs 10,794 
crore from the budget stage).  Among central sector 
schemes, the highest reduction was for the National 
Scheme for Incentive to Girl Child for Secondary 
Education (reduced from Rs 110 crore at the budget 
stage to Rs One crore at the revised stage). 

Another Standing Committee on Human Resource 
Development (2020) noted that the allocation for 
Central Universities is inadequate as compared to 
their infrastructure, faculty and number of students 
enrolled.26  This affects the implementation of 
schemes.  Thus, the Committee recommends 
increasing the budgetary allocations of the 
department of higher education. 

The NEP 2020 states that to achieve the target of 
public spending of 6% of GDP on education at the 
earliest, financial support will be provided to critical 
components of education.  These components 
include: (i) adequate number of teachers and staff, 
(ii) teacher development, and (iii) development of 
learning resources.  In the long-term, the policy 
recommends investments in key thrust areas of 
education such as: (i) teacher education and 
development, (ii) revamping colleges and 
universities, (iii) promotion of research, (iv) 
foundational literacy, and (v) quality early childhood 
care education.  Further, the Policy recommends the 
efficient use of funds to avoid underutilisation of 
allocations.  This will help in the timely 
achievements of targets under various schemes for 
education. 

## Department Of School Education And Literacy

Allocation to the department has seen an annual growth of 7% between 2010-11 and 2021-22. 

Note: Revised estimates have been used for 2020-21 and Budget estimates for 2021-22. Sources: Expenditure Budget, 2010-22; PRS. 

Annualised 
Change 
from 
Major Head 
2019-20 
Actuals 
2020-
21 RE 
2021-
22 BE 
Actuals 
2019-20 to 
BE 2021-22 
32,377 
28,078 
31,300 
-2% 
National Education Mission -Samagra Shiksha  
32,377 
27,957 
31,050 
-2% 
- 
120 
250 
- 
-Teachers Training and Adult Education 
9,699 
12,900 
11,500 
9% 
Mid-Day Meal Programme# Autonomous bodies 
10,077 
10,395 
11,192 
5% 
Scholarship Scheme* 
331 
350 
350 
3% 
Others 
36 
467 
532 
91.3% 
Total 
52,520 
52,189 
54,874 
5.9% 

Note: Annualised Change is from 2019-20 Actuals to 2021-22 Budget Estimate; # Refers to National Programme of Mid-Day Meal in Schools; * Refers to National Means-cum-Merit Scholarship Scheme. Sources: Expenditure Budget, 2021-22; PRS.  
Table 4 shows a trend of utilisation of funds allocated to the department between 2010-11 and 2020-21. 

actual expenditure (2010-21) (in Rs crore) 
Year 
Budget 
Estimate 
Actuals 
Utilisation % 
(Actuals/BE) 
2010-11 
33,214 
36,433 
110% 
2011-12 
41,451 
40,641 
98% 
2012-13 
48,781 
45,631 
94% 
2013-14 
52,701 
46,856 
89% 
2014-15 
55,115 
45,722 
83% 
2015-16 
42,220 
41,800 
99% 
2016-17 
43,554 
42,989 
99% 
2017-18 
46,356 
46,600 
101% 
2018-19 
50,000 
        48,441  
97% 
2019-20 
 56,537  
52,520  
93% 
2020-21 
   59,845  
    52,189*  
87% 

Note: BE - Budget Estimate. *Revised Estimate Sources: Union Budgets, 2012-22; PRS. 

National Education Mission: The NEM consists of two expenditure heads: (i) Samagra Shiksha, and (ii) Teachers Training and Adult Education.  Allocation to the NEM accounts for 34% of the total budget of the Ministry of Education.  In 2021-22, the NEM has been allocated Rs 31,300 crore, which is a 2% annual decrease as compared to 2019-20. Samagra Shiksha was launched in July 2018.  It aims to ensure inclusive and equitable quality education at all levels of school education.  It subsumed three 

erstwhile centrally sponsored schemes: (i) Sarva 
Shiksha Abhiyan (SSA), (ii) Rashtriya Madhyamik 
Shiksha Abhiyan (RMSA), and (iii) Teacher 
Education (TE). 

In 2021-22, Samagra Shiksha has been allocated Rs 
31,050 crore (6.8% annual increase over 2019-20).  
The allocation for Samagra Shiksha accounts for 
57% of the total departmental allocation and 99% of 
the allocation for the National Education Mission.  In 
2020-21, Samagra Shiksha was allocated Rs 38,751 
crore which was reduced to Rs 27,957 crore at the 
revised stage (a decline of 28%). 

Teacher Training and Adult Education has been 
allocated Rs 250 crore in 2021-22, which is 0.5% of 
the total departmental allocation.  In 2020-21, 
teacher training and adult education had an allocation 
of Rs 110 crore at the budget stage, which was 
increased to Rs 120 crore at the revised stage (an 
increase of 9%). 

National Programme of Mid-Day Meal in 
Schools:  In 2021-22, the mid-day meal programme 
has been allocated Rs 11,500 crore (9% annual 
increase over 2019-20).  In 2020-21, the programme 
was allocated Rs 11,000 crore at the budget stage 
which was increased by 17% to Rs 12,900 crore at 
the revised stage.  The programme targets 
enhancement of enrolment, retention, attendance, 
and nutritional levels among children studying in 
Class 1 to 8 across India.  

Autonomous bodies:  These include: (i) Kendriya 
Vidyalaya Sangathan (KVS), (ii) Navodaya 
Vidyalaya Samiti (NVS), (iii) National Council of 
Educational Research and Training (NCERT), (iv) 
Central Tibetan School Administration (CTSA), and 
(v) National Bal Bhawan.  In 2021-22, the allocation 
for autonomous bodies is Rs 11,192 crore (5% 
annual increase from 2019-20). 

National Means-cum-Merit Scholarship Scheme: 
The scheme provides one lakh scholarships of Rs 
6,000 per annum each to eligible meritorious 
students in Class 9.  The scholarship is provided up 
to Class 12 to prevent students from dropping out 
due to financial constraints. 

In 2021-22, Rs 350 crore has been allocated for the 
scheme (3% annual increase over 2019-20).  In 
2020-21, the scheme was allocated Rs 372 crore at 
the budget stage, which was reduced to Rs 350 crore 
at the revised stage (6% decrease). 

## Key Issues In School Education Enrolment, Transition, And Dropout Rates

Enrolment:  Gross Enrolment Ratio (GER) is the 
student enrolment as a proportion of the 
corresponding eligible age group in a given year.  In 
2018-19, the GER in primary education was close to 
100%.5  However, the GER reduces to 77% at the  

secondary level, and to 50% at the senior secondary level.  This implies that curtailing dropouts in the education system remains a challenge.  The GER for upper primary, secondary, and senior secondary level of education between 2010-11 and 2018-19 annually increased 1%, 2%, and 4% respectively.  The GER for the primary level of education had an annual decline of 1% between this period. India's enrolment rate in Class 1-5 and Class 6-8 is comparable to that of developed countries. However, it is significantly less (68%) than these countries for Class 9-12 (see Figure 3). The NEP 2020 notes that the decline in GER is higher for certain socio-economically disadvantaged groups, based on: (i) gender identities (female, transgender persons), (ii) socio-cultural identities (scheduled castes, scheduled tribes), (iii) geographical identities (students from small villages and small towns), (iv) socio-economic identities (migrant communities and low-income households), and (v) disabilities.7 
Transition and dropouts: Transition rates reflect the dropout levels in the school education system.  It is the percentage of pupils enrolled in the final grade of the current stage who proceed to the first grade of the next stage.  Higher the transition rate, lower the dropout level.  As of September 2016, the transition rate from primary to upper primary and from elementary to secondary was close to 90%, however, the transition rate from secondary to senior secondary was only 66% (see Figure 3).8 Note that there is a difference in transition rate from elementary to secondary education (Class 8 to Class 9) between boys and girls.  The transition rate for both genders is low for the transition from secondary to senior secondary (Class 10 to Class 11).  

## Impact Of Covid-19 On School Education

In March 2020, COVID-19 was declared a pandemic by the World Health Organisation, and a nationwide lockdown was imposed in India to contain the spread of the virus.  The lockdown shifted the teaching mode from offline mode to online mode. In 2020-21, Rs 818 crore was shared by the central government across states to promote online learning, and Rs 268 crore was allocated for online teacher training under Samagra Shiksha to ensure professional development of teachers.6 The Economic Survey 2020-21 observes that, as of October 2020, the percentage of students in government and private schools owning a smartphone increased from 36.5% in 2018 to 61.8% in 2020 in rural India. Further, to optimise the impact of COVID-19 pandemic on school education, the central government launched several initiatives.  Some of these initiatives are as follows: PM eVidya: The initiative was launched in May 2020 under the Aatma Nirbhar Bharat Abhiyaan.  Under this initiative all states were provided access to various e-content through the web portal - DIKSHA.  The e-content included courses for teachers, and quizzes.  In addition, the initiative provided for Swayam Prabha channels, which helped in telecasting educational programmes for students who did not have internet access.  The initiative also included a channel for differently abled children.6 contents for various school subjects in all classes.6 
Sources: UDISE Flash Statistics 2016-17, MHRD; PRS. 

According to the Ministry, the most prominent 
reason for dropping out in 2015-16 was the 
engagement in domestic activities (for girls) and 
engagement in economic activities (for boys).9  

12) for 2015-16 
| Reason for dropping out    | Male    | Female    |
|----------------------------|---------|-----------|
| Child not interested in    |         |           |
| studies                    |         |           |
| 23.8%                      | 15.6%   |           |
| Financial Constraints      | 23.7%   | 15.2%     |
| Engage in Domestic         |         |           |
| Activities                 |         |           |
| 4.8%                       | 29.7%   |           |
| Engage in Economic         |         |           |
| Activities                 |         |           |
| 31.0%                      | 4.9%    |           |
| School is far off          | 0.5%    | 3.4%      |
| Unable to cope up with     |         |           |
| studies                    |         |           |
| 5.4%                       | 4.6%    |           |
| Completed desired level/   |         |           |
| Grade                      |         |           |
| 5.7%                       | 6.5%    |           |
| Marriage                   |         |           |
|                            |         |           |
| 13.9%                      |         |           |
| Other reasons              | 5.1%    | 6.2%      |

Note: Other reasons include: (i) timings of educational Institution not suitable, (ii) language/medium of Instruction used unfamiliar, (iii) inadequate number of teachers, (iv) quality of teachers not satisfactory, (v) unfriendly atmosphere at school. For girl students, other reasons also include: (i) nonavailability of female teachers, (ii) non-availability of girl's toilet. Sources: Educational Statistics at Glance 2018, MHRD; PRS. 

To improve the retention of children in schools, the NEP 2020 recommends strengthening existing schemes and policies which are targeted at socio-economically disadvantaged groups.  For instance, schemes for free bicycles for girls from socio-economically disadvantaged groups or scholarships to tackle dropouts.  Further, it recommends setting up special education zones in areas with a significant proportion of such disadvantaged groups.  A gender inclusion fund should also be set up to assist female and transgender students in getting access to education. The Standing Committee on Human Resource Development (2020) suggested that vocational training be provided to students dropping out at the secondary level.  This will help them get job opportunities at the earliest and continue their studies.4 The Committee stated that Samagra Shiksha has the potential to revamp school education.  Note that the utilisation of funds under Samagra Shiksha in 2019- 20 was 89%.  The Committee specified that such underutilisation and any reduction in funds may lead to an adverse impact on project implementation at the ground level.4 Further, the Committee noted that the development of infrastructure has been slow in elementary and secondary schools.  This includes: (i) toilets for children with special needs in elementary schools (81% completed), (ii) toilets for girls in secondary schools (68% completed), and (iii) drinking water facilities in secondary schools (83% completed).  In addition, the Committee noted that, out of 26 lakh 

sanctioned posts of cook-cum-helpers under the 
Mid-Day Meal programme, 25 lakh posts have 
been engaged (4% vacancy).  Moreover, out of 10 
lakh kitchen-cum-stores sanctioned, 8.5 lakh 
kitchen-cum-stores have been created (92% 
complete).  The Committee highlighted that delay 
in completion of infrastructure leads to cost 
overruns and students' dropouts in government 
schools.4  

## Pupil-Teacher Ratio

Experts have identified various issues concerning the 
role of teachers to address the challenges confronting 
elementary education.10  These include: (i) low 
teacher accountability and appraisal, (ii) poor quality 
of the content of teacher-education and changes 
required in the curriculum of B. Ed and D. Ed 
courses, (iii) need for continuous in-service teacher 
training and upgradation of skill set, (iv) inadequate 
pupil-teacher ratio and deployment of teachers for 
non-educational purposes, (v) teacher vacancies, and 
(vi) excessive recruitment of contract/para teachers.   

Over the last few years, the number of teachers in the 
schooling system has increased (from nearly 82 lakh 
in 2013-14 to nearly 89 lakh in 2016-17).8  This has 
led to a decline in the Pupil-Teacher Ratio (PTR) 
across school education (from 31.3 in 2013-14 to 
28.4 in 2016-17).9  PTR is defined as the number of 
students per teacher.  According to the RTE Act, 
2009, the PTR should ideally be lower than 30:1 at 
the primary level, and 35:1 at the upper primary 
level.  Amongst the states, only Uttar Pradesh and 
Bihar do not meet the RTE prescribed PTR at the 
primary level, with a PTR of 39 and 36, respectively. 

The Standing Committee on Human Resource 
Development (2020) noted that 23% of total posts of 
teachers (including elementary and secondary levels) 
under Samagra Shiksha are vacant.  The states with 
comparatively higher vacancy include: (i) Jharkhand 
(48%), (ii) Uttarakhand (39%), (iii) Kerala (39%), 
and (iv) Karnataka (33%).  The Committee further 
highlighted that absence of teachers in government 
schools encourages parents to prefer private schools 
for their children.4 

The NEP 2020 also observes that the quality of 
teacher education, recruitment, deployment, and 
service conditions are not up to desired standards.  
Further, it noted the significant teacher vacancies 
across India.  It also adds that poor service 
conditions and culture, and lack of career 
progression amongst teachers affects their motivation 
and teaching quality.  

## Quality Of Learning

The National Achievement Survey (NAS) 2017 
observed that nearly 53% of Class 3 students have 
achieved grade proficiency levels.11   This means that 
they can solve problems using simple logic, apply 
simple rules, follow simple instructions, and are able 

to use simple language to express themselves.  This proportion of students who are grade proficient drops to 47% in Class 5 and to a further 39% in Class 8. Note that NAS is conducted for Class 3, 5, and 8 and it measures learning level outcomes in language, mathematics, and environmental studies (for Class 3 and 5), and language, mathematics, sciences, and social sciences (for Class 8).11 
Note: Below basic means learners at this level have not achieved the required learning for this grade. Sources: National Achievement Survey 2017, MHRD; PRS.  
The Central Advisory Board on Education (CABE, 2014), National Achievement Survey (2012 and 2017), and the Economic Survey (2016-17) also observed declining learning levels in elementary education even after the implementation of the Right to Education Act, 2009.12,13,14,15   
Under the RTE Act, children are enrolled in the Class that corresponds to their age, irrespective of their learning levels.  This results in a situation where children may have different learning levels within the same Class, depending on when they are enrolled in the schooling system.  To close the gap in learning levels, the NEP 2020 has made several recommendations such as reforms in curriculum and nature of assessments and improving foundational literacy and numeracy through incorporating early childhood care and education in the education system.7 The NEP 2020 also notes lack of foundational literacy and numeracy as a reason behind poor learning levels at subsequent stages of education.  It observed that more than five crore students currently enrolled in elementary school (26% of students) have not attained foundational literacy and numeracy (the ability to read and understand basic text and carry out basic addition and subtraction).  It recommends that every child should attain foundational literacy and numeracy by Class 3.   

Similarly, the National Achievement Survey (2015) 
for Class 10 indicate that 24% students were in the 
range of 0-35% score and 61% students were in the 
range of 36-50% score in English.  Further, 35% 
students were in 0-35% scores, and 49% students 
were in the range of 36-50% scores in 
Mathematics.16  No significant differences were 
observed in the scoring pattern on the basis of gender 
(boys and girls). 

## Curriculum

The National Education Policy 2020 noted that the 
current curriculum system is based on rote learning.  
The Policy specifies reduction in the content of 
subjects to core essentials to enhance critical 
thinking, and inquiry-based, discussion-based, 
discovery-based, and analysis-based learning.7 

The Policy recommends various reforms in the 
curriculum system to shift the system towards a 
character and skill-building system.  The reforms 
include: (i) introduction of experiential learning 
(such as hands-on learning, arts/sports-integrated 
learning), (ii) eliminating significant separation 
among curricular, extracurricular, or co-curricular in 
certain streams, and (iv) promoting mother tongue as 
medium of instruction, preferably till Class 8 and 
beyond.7  

Further, it recommended that the existing system of 
exams be reformed.  Board examinations should test 
only core concepts and cover a range of subjects.  
Students should be able to choose their subjects and 
have the option to take the exams on up to two 
occasions during a given year.  To track students' 
progress throughout their school experience, 
examinations will be conducted in Class 3, 5, and 8.  
The examination in Class 3 will test basic 
foundational literacy and numeracy, and its results 
will only be used for the improvement of the school 
education system.  Further, a National Assessment 
Centre will be set up under the MHRD as a standard-
setting body for student assessment and evaluation.7 

Note that under the RTE Act, the Continuous and 
Comprehensive Evaluation (CCE) is the evaluation 
mechanism for elementary education.  CCE (e.g., 
paper-pencil test, drawing and reading pictures, and 
expressing orally) does not mean an absence of an 
evaluation, but it means an evaluation of a different 
kind from the traditional system of examinations.  It 
has been recommended that proper design of 
assessment and using this information can help 
improve the quality and innovation in terms of 
teaching and learning.17  However, the CABE (2014) 
noted that CCE has not been adequately 
implemented or monitored.  It recommended that 
there is a need to proactively communicate the intent 
of CCE among teachers for its effective 
implementation.18  
 

## Department Of Higher Education

In 2021-22, the Department of Higher Education has been allocated Rs 38,351 crore (2% annual increase over 2019-20).   This is 41% of the total budget allocation to the Ministry of Education.  In 2020-21, the allocation for the department was Rs 39,467 crore, which was reduced to Rs 32,900 crore at the revised stage (17% decrease). The allocation for the department has increased annually by 9% between 2010-11 and 2021-22. Figure 5 depicts the allocation to the Department of Higher Education from 2010-11 to 2021-22.   
Note: Revised Estimates have been used for 2020-21 and Budget Estimates for 2021-22. 

Sources: Union Budgets 2010-22; PRS.      
Table 6 indicates utilisation of funds to the department between 2010-11 and 2020-21.  The utilisation has been over 90% of the budget estimates in the last three years as seen in the table.  In 2016-
17 and 2017-18, the Department exceeded its budget estimates, i.e., crossed 100% utilisation. 

actual expenditure (2010-21) (in Rs crore) 
Year 
Budget 
Estimate 
Actuals 
Utilisation % 
(Actuals/BE%) 
2010-11 
16,690 
15,472 
93% 
2011-12 
21,912 
19,505 
89% 
2012-13 
25,275 
20,423 
81% 
2013-14 
26,750 
24,465 
91% 
2014-15 
27,656 
23,152 
84% 
2015-16 
26,855 
25,439 
95% 
2016-17 
28,840 
29,026 
101% 
2017-18 
33,330 
33,614 
101% 
2018-19 
35,010 
    31,904  
91% 
2019-20 
   38,317  
36,916  
96% 
2020-21 
39,467 
  32,900*  
83% 

Note: BE - Budget Estimate. *Revised Estimate Sources: Union Budgets 2010-22; PRS. 

Table 7 provides the major heads of financial allocation under the Department for 2021-22. 

Annuali
2020-21 
2021-22 
sed 
Major Head 
2019-20 
Actuals 
RE 
BE 
Change 
IITs 
6,596 
6,841 
7,686 
8% 
Grants to Central Universities 
7,989 
8,634 
7,643 
-2% 
4,872 
4,860 
5,109 
2% 
Statutory and regulatory bodies (UGC and AICTE) 
3,487 
3,265 
3,935 
6% 
National Institutes of Technology and IIEST 
1,278 
166 
3,000 
53% 
Rashtriya Uchhatar Shiksha Abhiyan (RUSA) Student Financial Aid 
2,070 
1,208 
2,482 
10% 
World Class Institutions 
224 
1,101 
1,710 
176% 
791 
993 
946 
9% 
Indian Institutes of Science, Education, and Research (IISERs) Digital India-elearning 
458 
305 
646 
19% 
Indian Institute of Science (IISc) 
596 
605 
622 
2% 
Indian Institutes of Management 
481 
465 
476 
-1% 
328 
339 
393 
9% 
Indian Institutes of Information Technology (IIITs) Research and Innovation 
257 
284 
237 
-4% 
Others 
7,490 
3,833 
3,465 
-32% 
Grand Total 
36,916 
32,900 
38,351 
2% 

Sources: Expenditure Budget 2021-22; PRS.  

In 2021-22, the highest share in the departmental 
allocation is of grants to Central Universities and 
Indian Institutes of Technology (IITs) at 20% each.  
Other expenditure heads with a high share of 
departmental allocation among others are statutory 
and regulatory bodies (13%), and National Institutes 
of Technology, and the Indian Institute of 
Engineering Science and Technology (10%).   

Allocation to World Class Institutions in 2021-22 is 
Rs 1,710 crore (176% annual increase over 2019-20).  
The government has granted the status of Institution 
of Eminence (IoE) to ten private institutions and 
eight public institutions.19  These institutions have 
greater autonomy in admitting foreign students, 
fixing fees, and recruiting foreign faculty.  Further, 
each public institution declared as an Institute of 
Eminence gets financial assistance of up to Rs 1,000 
crore over five years.20 

## Issues In The Higher Education Sector Enrolment

As of 2018-19, GER in higher education in India is 
26.3%.21  A GER of 26.3% implies that 26.3% of people in the target age-group are enrolled in universities. The States/Union Territories with comparatively higher GER in 2018-19 include Sikkim (53.9%), Tamil Nadu (49%), Delhi (46%), and Himachal Pradesh (39.6%), among others.21 The Standing Committee (2016) had noted that the Gross Enrolment Ratio (GER) in higher education in the country has increased due to the government of India's efforts of setting up new Central Universities in the country, including Indian Institutes of Information Technology (IIITs).22 The All India Survey on Higher Education 2018-19 report reveals that enrolment decreases as one goes further higher from undergraduate education.21  Out of the total number of students enrolled in higher education, the highest enrolment is at the undergraduate level (79.8%) followed by postgraduate (10.8%).  With regard to the types of disciplines studied, most students at the undergraduate level are enrolled in the Arts stream (33%), followed by Science (16%), Commerce (14%), and Engineering & Technology (13%).  The leading stream at the post-graduate level is social Science, followed by Management.  At the Ph.D. level, the majority of the students chose Science in 2018-19. The NEP 2020 aims to increase the GER in higher education to 50% by 2035.  This will be achieved by improvement in the capacity of existing higher education institutes by restructuring and expanding existing institutes.7 Further, NEP 2020 recommends that all institutes should aim to be large multidisciplinary institutes (with enrolments in thousands), and there should be one such institution in or near every district by 2030.  Further, institutions should have the option to run open distance learning and online programmes to enhance the reach of higher education.7   

## Regulation Of Higher Education

The NEP 2020 observes that higher education in 
India has been overly regulated with too little effect.  
It noted problems of concentration of power, conflict 
of interest, and a resulting lack of accountability in 
higher education regulation. 

In India, higher education is regulated by multiple 
authorities.  The University Grants Commission 
(UGC) regulates universities and colleges teaching 
general subjects.  It is empowered with disbursing 
grants to universities for their maintenance and 
development, and with regulating fees charged by 
them.  It also has powers regarding the recognition, 
functioning, and de-recognition of deemed 
universities.  Failure to comply with UGC standards 
may result in withdrawal of grants or termination of 
affiliation of a college to a university if the college 
does not comply with fee structure and other 
regulations.23   

The All India Council for Technical Education 
(AICTE) regulates universities or colleges offering 
technical courses such as engineering and 
management.  These institutions are required to 
comply with the academic standards and regulations 
set by AICTE.24  Additionally, institutions offering 
courses related to medical, legal, nursing, or 
architectural education are regulated by 15 
professional councils such as the Medical Council 
and the Bar Council.  These councils also conduct 
qualifying examinations for entering the profession. 

For setting quality standards and accreditation, there 
are, currently, two accrediting institutions: (i) the 
National Board of Accreditation (NBA) established 
by AICTE, and (ii) the National Assessment and 
Accreditation Council (NAAC) established by UGC.  
The National Knowledge Commission (2009) had 
noted that only 10% of all institutions had been 
accredited.25  The Standing Committee on Human 
Resource Development (2016) noted that 
accreditation of higher educational institutions needs 
to be at the core of the regulatory arrangement in 
higher education.22  Further, the Committee 
recommends that credit rating agencies, reputed 
industry associations, and professional bodies should 
be encouraged to rate Indian universities and 
institutions.    

The Standing Committee on Human Resource 
Development (2020) noted higher education to be of 
global importance.26  The Committee recommended 
alignment of the higher education system in India 
with global standards by developing graduates with 
new skills, a broad knowledge base, and 
competencies.  The Committee noted that this could 
be achieved by: (i) upgrading existing institutions, 
(ii) allocating more funds towards university-based 
research, and (iii) promoting collaborations among 
institutions. 

The NEP 2020 has recommended a complete overhaul of the higher education regulatory structure. It states that the distinct functions of regulation, accreditation, funding, and setting academic standards should be performed by separate, independent bodies to minimise the conflict of interest and eliminate the concentration of power. The Finance Minister stated that the legislation, to set up the Higher Education Commission of India, will be introduced in 2021-22.  The Commission will act as an umbrella body with four separate arms for: (i) standard-setting, (ii) accreditation, (iii) regulation, and (iv) funding.2 

## Teacher Related Issues

As of September 2020, 6,210 teaching posts are vacant across 42 central universities which come within the purview of the Ministry of Education.27 The Standing Committee on Human Resource Development (2016) noted that this could be due to two reasons: (i) young students don't find the teaching profession attractive, or (ii) the recruitment process is long and involves too many procedural formalities.22 The Standing Committee on Education, Women, Children, Youth, and Sports (2021) noted that the current evaluation system of faculty recruitment is ineffective.28  The Committee recommends transforming the National Eligibility Test to align with the latest modes of teaching and research. Further, the Committee observes a need for a mechanism to monitor faculty induction and development. The NEP 2020 states that National Professional Standards for Teachers will be developed by 2022. The standards will specify expectations from a teacher at different levels of expertise.  These standards will be revised in 2030 and thereafter every ten years to ensure the efficacy of the system. 

 

Annualised 
change 
% Change from 
2020-21 Budget 
Major Heads 
2019-20 
Actuals 
2020-21 
Budget 
2020-21 
Revised 
2021-22 
Budgeted 
to 2020-21 
Revised 
from 2019-
20 Actuals 
to 2021-22 
Budget 
Department of School Education and Literacy 
  52,520  
  59,845  
  52,189  
-13% 
     54,874  
2% 
Autonomous bodies 
   10,077  
    9,205  
 10,395  
13% 
    11,192  
5% 
National Education Mission  
  32,377  
  38,861  
 28,078  
-28% 
     31,300  
-2% 
-Samagra Shiksha 
   32,377  
  38,751  
 27,957  
-28% 
    31,050  
-2% 
-Teachers Training and Adult Education 
            -    
       110  
      120  
9% 
         250  
- 
National Programme of Mid-Day Meal in Schools 
    9,699  
   11,000  
  12,900  
17% 
    11,500  
9% 
National Means cum Merit Scholarship Scheme 
       331  
       373  
      350  
-6% 
         350  
3% 
Others 
         36  
        407  
       467  
15% 
         532  
282% 
Department of Higher Education 
   36,916  
  39,467  
  32,900  
-17% 
    38,351  
2% 
Student Financial Aid 
    2,070  
    2,316  
    1,208  
-48% 
      2,482  
10% 
Digital India-e-learning 
       458  
       444  
       305  
-31% 
         646  
19% 
Research and Innovation 
       257  
       307  
       284  
-8% 
          237  
-4% 
Statutory and regulatory bodies (UGC and AICTE) 
    4,872  
     5,109  
    4,860  
-5% 
     5,109  
2% 
Grants to Central Universities 
    7,989  
    7,643  
    8,634  
13% 
       7,643  
-2% 
Indian Institutes of Technology 
    6,596  
    7,332  
    6,841  
-7% 
      7,686  
8% 
Indian Institutes of Management 
        481  
       476  
       465  
-2% 
          476  
-1% 
National Institutes of Technology and IIEST 
     3,487  
     3,885  
    3,265  
-16% 
       3,935  
6% 
Indian Institute of Science, Education and Research (IISERs) 
        791  
        896  
       993  
11% 
         946  
9% 
Indian Institute of Science (IISc) 
        596  
       592  
   605  
2% 
         622  
2% 
Indian Institutes of Information Technology (IIITs) 
        328  
        393  
       339  
-14% 
          393  
9% 
World Class Institutions 
       224  
        500  
    1,101  
120% 
      1,710  
176% 
Rashtriya Uchhatar Shiksha Abhiyan (RUSA) 
1,278 
        300  
166 
-45% 
      3,000  
53% 
Improvement in Salary Scale of University and College Teachers 
1800 
    1,900  
348.51 
-82% 
            10  
-93% 
Higher Education Financing Agency (HEFA) 
     2,100  
     2,200  
       200  
-91% 
              1  
-98% 
Others 
     3,590  
     5,172  
    3,284  
-36% 
      3,454  
-2% 
 Total  
89,437 
99,312 
85,089 
-14% 
    93,224  
2% 
Sources:  Expenditure Budget 2021-22; PRS. 

 
 

## Indicators On School And Higher Education

GER in Secondary 
GER in Elementary Education 
GER in Higher 
(Class 1-8) 
Education 
(Class 9-12) 
State/ UT 
Education  
Total 
(Beyond Class 12) 
Primary 
Upper 
Primary 
Elementary 
Secondary 
Higher 
Secondary 
Andhra Pradesh 
82.8 
82.1 
82.5 
76.3 
60.6 
32.4 
Arunachal Pradesh 
106.2 
119.9 
110.4 
85.9 
51.2 
29.7 
Assam 
107.4 
96.7 
103.7 
78.6 
39.7 
18.7 
Bihar 
98.1 
103.9 
99.9 
76.7 
28.8 
13.6 
Chhattisgarh 
97.1 
100.8 
98.5 
87.7 
54.5 
18.6 
Goa 
101.3 
97.1 
99.7 
99.3 
78.7 
30.1 
Gujarat 
95.0 
97.2 
95.8 
74.5 
43.2 
20.4 
Haryana 
93.9 
94.4 
94.1 
86.3 
60.8 
29.2 
Himachal Pradesh 
97.9 
103.0 
99.8 
103.9 
92.0 
39.6 
Jammu & Kashmir 
77.1 
66.2 
73.0 
61.7 
52.9 
30.9 
Jharkhand 
96.6 
91.8 
95.0 
63.5 
37.1 
19.1 
Karnataka 
103.7 
92.9 
99.7 
84.4 
41.9 
28.8 
Kerala 
95.1 
93.6 
94.6 
99.4 
79.4 
37.0 
Madhya Pradesh 
92.1 
89.7 
91.3 
80.2 
47.1 
21.5 
Manipur 
120.6 
119.3 
120.2 
86.5 
64.4 
33.7 
Maharashtra 
97.5 
98.7 
97.9 
91.7 
70.7 
32.0 
Meghalaya 
129.1 
128.0 
128.8 
83.3 
40.6 
25.8 
Mizoram 
115.7 
127.5 
119.3 
95.9 
54.6 
25.7 
Nagaland 
81.7 
90.4 
84.4 
61.8 
36.3 
18.7 
Odisha 
100.2 
94.6 
98.1 
79.9 
40.1 
22.1 
Punjab 
99.3 
97.7 
98.7 
87.1 
72.2 
29.5 
Rajasthan 
97.8 
92.0 
95.8 
76.6 
60.3 
23.0 
Sikkim 
92.0 
136.8 
106.9 
112.0 
64.2 
53.9 
Tamil Nadu 
102.0 
93.4 
98.6 
93.9 
83.7 
49.0 
Telangana 
98.6 
86.9 
94.1 
81.8 
50.6 
36.2 
Tripura 
102.4 
126.4 
110.0 
112.3 
41.9 
19.2 
Uttar Pradesh 
87.2 
72.7 
82.1 
67.8 
59.0 
25.8 
Uttarakhand 
96.4 
86.7 
92.7 
84.4 
77.1 
39.1 
West Bengal 
96.3 
96.3 
96.3 
78.6 
50.9 
19.3 
Andaman & Nicobar Islands 
86.9 
83.1 
85.4 
84.1 
72.8 
23.2 
Chandigarh 
80.1 
95.6 
85.8 
89.7 
83.2 
50.6 
Dadra & Nagar Haveli 
82.9 
91.6 
86.0 
91.2 
51.8 
9.3 
Daman & Diu 
84.0 
81.1 
82.9 
73.3 
34.6 
5.5 
Delhi 
109.2 
129.0 
115.9 
114.4 
74.2 
46.3 
Lakshadweep 
70.0 
81.4 
79.8 
105.7 
97.9 
7.4 
Puducherry 
85.6 
84.8 
85.3 
87.5 
74.2 
46.4 
India 
95.1 
90.7 
93.6 
79.4 
55.4 
26.3 

Note: Enrolment rate can exceed 100% due to early or late school entrance and grade repetition, or for example, children not in the 6-14 age group still being enrolled in elementary school.  Data for higher education is of 2018. Sources: Flash Statistics, UDISE 2016-17; AISHE 2018-19, Ministry of Human Resource Development; PRS. 

## 

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12 "Report of CABE Sub Committee on Assessment on 
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Ministry of Human Resource 
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14 National Achievement Survey 2017, Dashboard, 
http://nas.schooleduinfo.in/dashboard/nas_ncert#/. 

15  Economic Survey, 2016-17, http://indiabudget.nic.in/es2016-
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18 "Report of CABE Sub Committee on Assessment on 
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21 All India Survey on Higher Education, 2018-19, Ministry of Human Resource and Development, Department of Higher Education, http://aishe.nic.in/aishe/viewDocument.action?documentId=262. 22 Report No. 284 - Issues and Challenges before Higher Education Sector in India, Standing Committee on Human Resource Development, December 14, 2016, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/16/16/284_2017_4_11.pdf 23 University Grants Commission Act, 1956, https://www.ugc.ac.in/oldpdf/ugc_act.pdf. DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS").  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it. 

24 All India Council for Technical Education Act, 1987, http://legislative.gov.in/sites/default/files/A1987-52.pdf. 25 "Report to the Nation: 2006-2009", National Knowledge Commission, March 2009, http://www.aicteindia.org/downloads/nkc.pdf. 

26 Report No. 313 - Demand for Grants 2020-21 of the 
Department of Higher Education, Standing Committee on Human 
Resource Development, March 5, 2020, 
https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R
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27 Lok Sabha, Unstarred Question No. 202, Vacant teachers and 
other staff posts, Ministry of Education, September 14, 2020.  

28 Report No. 322, Standing Committee on Education, Women, 
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2021