States with the Lowest Education Spending in India Revealed

This article reveals the Indian states that allocate the least funds for education, highlighting alarming statistics from PRS. It discusses the implications of low spending on the future of the youth in India, particularly in states like Telangana and Karnataka, which prioritize infrastructure and populist schemes over educational investment. With a national education budget of ₹1.39 lakh crore, the disparity in state allocations raises concerns about the future of education in these regions. Explore the reasons behind these budgetary decisions and their impact on the education system.

By Ambika Singh Oct 8, 2026, 16:51 IST

Understanding Education Expenditure in India

Explore which Indian state allocates the least funds for the education of its youth, as highlighted by alarming statistics from PRS that shed light on governmental priorities.

India boasts the youngest population globally, making the education system crucial for the nation's future. The National Education Policy 2020 by the Government of India suggests that both the Centre and states should invest at least 6% of their GDP in education. However, recent data from various government sources, including the RBI and NITI Aayog, paints a different picture across many states. Let's uncover which state spends the least on education relative to its budget.

States Neglecting Education Funding

Recent government statistics indicate that Telangana and Karnataka are at the bottom of the list regarding education spending as a percentage of their Gross State Domestic Product (GSDP) and overall budget. These states allocate only about 1.3% to 1.7% of their total economic output to education, marking them as some of the lowest in the nation.

A report from NITI Aayog on higher education further emphasizes that while states like Delhi prioritize educational funding, Telangana and Karnataka significantly underperform in both higher education and general school funding.

Budget Allocations for Education

The central education budget for the current fiscal year is approximately ₹1.39 lakh crore. In contrast, larger states like Maharashtra are setting a record with an education budget of around ₹1.05 lakh crore. However, several southern and central states are lagging in relative spending.

For example, Telangana's education budget ranges from ₹27,663 crore to ₹44,054 crore, while states like Madhya Pradesh (around ₹52,917 crore) and Gujarat (₹63,184 crore) are investing much more. Despite being recognized as IT hubs, Telangana and Karnataka are witnessing a decline in the percentage of their total budget dedicated to education.

Reasons for Low Education Expenditure

Various administrative and economic factors contribute to the reduced education budgets in these states. A primary reason is the focus on infrastructure development over educational funding.

Additionally, the implementation of populist freebie schemes consumes a significant portion of the budget, leaving insufficient funds for essential social sectors, including the modernization of schools and colleges and the hiring of new educators.