At least three states, including Bihar and Nagaland, have received zero funds from the Centre under the PM SHRI scheme.
The Centre has not disbursed more than 25 percent of its share to 17 states, including Uttar Pradesh, Maharashtra and Karnataka, under the PM SHRI scheme.
The PM SHRI (PM ScHools for Rising India) scheme was approved by the Union Cabinet in September 2022 with the aim to develop more than 14,500 PM SHRI schools and provide them "high-quality education in an equitable and inclusive environment as envisioned in the National Education Policy, 2020."
For this, existing schools being managed by the central and state governments, including Kendriya Vidyalayas (KVS) and Navodaya Vidyalayas (NVS), are selected for upgrading infrastructure, technology integration, teacher training, pedagogy and inclusive practices.
However, only 35 percent of the budget allocated to the scheme was actually spent in the last financial year.
Observations over the ‘very poor’ utilisation of funds under the PM SHRI scheme were presented in Rajya Sabha on 26 March by the Parliamentary Standing Committee on Education, Women, Children, Youth and Sports.
“This under-utilisation of funds is evident on the ground as little qualitative change is seen in schools on key educational indicators,” said Mitra Ranjan, Coordinator, National Secretariat at RTE Forum, a group of organisations working for the implementation of the Right of Children to Free and Compulsory Education (RTE) Act, 2009.
In the second story for The Quint's State of Education series, we look at how the Centre has not released funds to many states under PM-SHRI scheme even as the overall utilisation of funds by the Department of School Education and Literacy (DSEL) is at an all-time low:
One-Third of PM SHRI’s Allocation Actually Spent
The PM SHRI scheme is proposed to be implemented over a period of five years from FY 23 to FY 27. The total cost of the project was projected to be Rs 27,360 crore—of which, the Centre’s share is Rs 18,128 crore and states’ share is Rs 9,232 crore.
Even as the scheme has come halfway, the government has spent a little over a third of the funds allocated to the scheme.
In fact, the utilisation of funds has been consistently low in the scheme, with only 30 percent being utilised in the year before that. And this is despite the scheme getting more money—from Rs 4,000 crore in FY 24 to Rs 6,050 crore in FY 25.
The scheme has been allocated Rs 7,500 crore for the FY 2025-26.
'Less Funds Disbursed to States = Less Money Spent on Improving School Infrastructure'
33 states and Union Territories (UTs) have opted for the scheme, the latest being Delhi which signed the MoU in October 2024. PM SHRI scheme is funded both by the Centre and the state in the following pattern:
60-Centre : 40-states/UTs with legislature (except J&K)
90-Centre:10-states for North-eastern and Himalayan states, including J&K
100-Centre: for the Union Territories without legislature
We map out the funds disbursed by the Centre to states in FY 2024-25 as a percentage of the Centre’s share:
Data shows that Bihar has received zero funds from the Centre’s share of over Rs 360 crore in FY 25. Nagaland and Lakshadweep Islands also received no funds from the Centre.
This is followed by Chhattisgarh, which has received only 6.6 percent of central funds. 17 states, including ones with high population density such as Uttar Pradesh, Andhra Pradesh, Telangana, Maharashtra and Karnataka, have not received more than 25 percent of the Centre’s share.
The maximum amount of funds disbursed by the Centre was to Madhya Pradesh—at 52.2 percent of the Centre's share. Meanwhile, Gujarat received 41.3 percent of the Centre's share.
“The aim of the scheme was to strengthen 14,500 schools in terms of providing libraries, smart classrooms, integrated science labs, computer labs, internet facility, subject expert teachers. A delay in the disbursal of funds from the Centre means less expenditure on these improvements. Then how will the quality of education be better?”Mitra Ranjan, Coordinator, National Secretariat at RTE Forum
He added that at least 1.17 lakh schools are still being run by a single teacher as per UDISE 2021-22 report; while Bihar has one of the highest number of vacant posts for school teachers.
‘PM SHRI is Promoting Exclusivity Over Inclusivity’
Meanwhile, KVS received 50.6 percent of the Centre’s share while NVS received 48.9 percent. Data on the amount of funds disbursed to Delhi was not shared with the Standing Committee.
“KVS, NVS and Sainik Schools are already good performers. Including them in PM SHRI scheme means a lot of other schools with scopes of improvement are being left behind,” Ranjan said.
He reasoned that 29 percent of DSEL’s total Budget is allocated to 8,108 KVS, NVS and PM SHRI schools, which house nearly 20 lakh students. Meanwhile, the remaining 11.6 lakh schools, housing more than 15.6 crore students, are allocated 51 percent of DSEL’s total Budget. And this has decreased through the years.
“This division is neither equal nor equitable. As a result of this, very few schools are equipped with most facilities; while most schools have very few facilities. It is promoting exclusivity over inclusivity,” Ranjan explained.
Kerala, Tamil Nadu and West Bengal— states which have non-BJP governments and have not opted for the scheme— have not even received funds under the Samagra Shiksha Abhiyan.
“The RTE Act, 2009 was passed by the Parliament as a Fundamental Right for children. The Samagra Shiksha Abhiyan is a vehicle to implement RTE. The Centre can’t stop providing funds to these states only because they didn’t opt for PM SHRI scheme. It is unconstitutional to do so,” Ranjan told The Quint.
Only Half the Allocated Money Spent on Centrally Sponsored Schemes
More than Rs 57,400 crore were allocated to five centrally sponsored schemes under the Department of School Education and Literacy:
Samagra Shiksha Abhiyan
PM-POSHAN - Pradhan Mantri Poshan Shakti Nirman (erstwhile Mid-Day Meal Scheme)
NILP - New India Literacy Programme
STARS - Strengthening Teaching-Learning and Results for States
PM SHRI
This allocation was revised to over Rs 52,400 crore for FY 2024-25. However, of this, a little over Rs 29, 240 crore was spent on the schemes that year. This accounts for 50.9 percent of the budget allocated and 55.7 percent of the revised estimate.
The Committee expressed “its concern over the poor fiscal management and under-utilization of allocated funds under various flagship schemes of the Department like SSA, PM-POSHAN, NILP, STARS and PM SHRI.”
It is noteworthy that the allocation for each of the schemes has increased each fiscal.
At the same time, the actual expenditure incurred by the Department of School Education and Literacy (DSEL) has seen a significant dip in 2024-25. This can primarily be attributed to under-utilisation of funds earmarked for centrally sponsored schemes, which comprise nearly 80 percent of DSEL’s total budget.
The Department of School Education and Literacy (DSEL) actually spent 64 percent of the revised estimate for FY 25— a drop of 30 percentage points when compared to FY 24.
'India's Expenditure on Education Not Up to Mark'
A little over 2.5 percent of India’s total budget is allocated to Education, accounting for Rs 1,28,650 crore. Over 61 percent of this goes to the Department of School Education and Literacy, which oversees the five schemes including PM SHRI.
In the last few years, the budget allocated to DESL has grown steadily at approx. 6.8 percent but the Standing Committee pointed out that it should increase at least 8-10 percent to accommodate for inflation and to avoid a decline in actual allocation/expenditure for school education.
“The current allocations are, therefore, disappointing – especially in the context of the need for adequate resources to implement the NEP 2020.” the committee noted.
Again, expenditure on Education by the Centre and the states as a percentage of Gross Domestic Product (GDP) stands at 4.12 percent for the year 2021-2022—as against 6 percent envisioned by NEP 2020.
“It was in 1968 that the Kothari Commission had recommended that expenditure on Education should be at least 6 percent of India’s GDP. Half a Century later, we have still not been able to achieve it. Considering how prices have risen, it should now actually be 10 percent of the GDP, but the government should at least bring it up to 6 percent,” Ranjan argued.
The Committee also notes that SAARC countries like Bhutan and Maldives are spending 7.47 percent and 4.67 percent of their GDP respectively in 2022 as against 4.12 % spending on Education by India.
Ranjan recommended that the Centre should release funds to states timely as well as monitor their utilisation by collecting data such as - how many schools got new labs, or more teachers, etc.
He added the need to identify factors for under-utilisation of funds and sought the Education Ministry to present a white paper on the same.
Appeal from The Quint
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In the State of Education series, The Quint uncovers how funds meant to improve the education infrastructure remain stuck on paper. And how this is denying lakhs of students their right to affordable, quality education.
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