Parliamentary Panel Highlights Fund Underutilisation and Capex Neglect in School Education Schemes
Contents4
Hindustan Times - India · 26 Mar 2026 · 2 min read
Prelims · Education Mains · GS2 Governance High relevance
A parliamentary committee report reveals significant underutilisation of funds in centrally sponsored school education schemes and negligible capital expenditure for FY27, urging systemic reforms in fund flow and implementation.
Key points
Samagra Shiksha and other CSS schemes saw only 51.5% fund utilisation (₹32,296.54 crore) against the ₹62,660 crore budget estimate for FY25-26, indicating serious implementation gaps.
The committee noted a 15.02% shortfall in allocations (₹83,562.26 crore approved vs ₹98,331.90 crore projected), recommending corrective measures at the revised estimate stage.
Capital expenditure for FY26-27 is alarmingly low at ₹0.85 crore, with the panel demanding increased allocations for infrastructure in aspirational districts and LWE-affected areas.
PM POSHAN scheme shows consistent underperformance - 46.9% spending shortfall in FY25-26 and 20.6% in FY24-25, with beneficiary numbers declining from 12.16 crore to 10.99 crore.
West Bengal's exclusion from PM POSHAN since 2022-23 highlights federal coordination challenges in scheme implementation between Centre and states.
Kendriya Vidyalayas face 17% teaching and 28% non-teaching vacancies, while Navodaya Vidyalayas have 29.5% teaching and 26% non-teaching vacancies, severely impacting operations.
NCERT struggles with 130 vacant academic posts (out of 528) and 133 teaching vacancies (out of 271), delaying textbook revisions aligned with NCF 2023.
DHRUV scheme remains non-operational since 2019 despite ₹50 crore allocation, reflecting poor execution of innovative learning initiatives.
[GS2-Governance] The systemic fund underutilisation points to deeper issues in intergovernmental coordination, bureaucratic processes, and monitoring mechanisms for CSS implementation.
Way Forward: Implement fixed quarterly fund release schedules, strengthen real-time expenditure monitoring through PFMS, establish inter-ministerial task forces for bottleneck resolution, and introduce outcome-based funding for better accountability.
Key terms
- Centrally Sponsored Schemes (CSS)
- Schemes jointly funded by Centre and states (typically 60:40 or 90:10 ratio) where Centre sets guidelines. Key for GS2 governance questions as they reflect cooperative federalism challenges in implementation and fund flow mechanisms.
- Revised Estimate (RE)
- Mid-year budget adjustment reflecting actual expenditure trends and changing priorities. Crucial for public finance management (GS3) as it indicates fiscal discipline and adaptive governance.
- Aspirational Districts Programme
- NITI Aayog's initiative targeting 112 backward districts through convergence of central/state schemes. Relevant for GS2 social justice and governance questions on inclusive development.
- National Curriculum Framework (NCF) 2023
- The foundational document guiding India's school education reform under NEP 2020. Important for GS2 education governance and GS4 ethics questions on value-based education.
Practice question
The recent parliamentary committee report highlights systemic underutilisation of funds in centrally sponsored school education schemes. Critically examine the key challenges in fund utilisation and suggest measures to improve the implementation of these schemes. (250 words, 15 marks)
GS2 15 marks 250 words Mains
Key terms to include: Samagra Shiksha PM POSHAN Centrally Sponsored Schemes (CSS) Aspirational Districts Programme National Curriculum Framework (NCF) 2023 Revised Estimate (RE) PFMS NEP 2020
Answer framework
Introduction
Briefly introduce the context of the parliamentary committee report on underutilisation of funds in school education schemes like Samagra Shiksha and PM POSHAN, highlighting the gravity of the issue.
Key Challenges in Fund Utilisation
Low capital expenditure (only ₹0.85 crore for FY26-27) leading to poor infrastructure development, especially in aspirational districts and LWE-affected areas.
Persistent underperformance of schemes like PM POSHAN with 46.9% spending shortfall in FY25-26 and declining beneficiary numbers.
High vacancy rates in institutions like Kendriya Vidyalayas (17% teaching vacancies) and Navodaya Vidyalayas (29.5% teaching vacancies) affecting operations.
Non-operationalisation of innovative schemes like DHRUV despite allocations, reflecting poor execution.
Federal coordination challenges, exemplified by West Bengal's exclusion from PM POSHAN since 2022-23.
Systemic Issues
Intergovernmental coordination gaps between Centre and states in CSS implementation.
Bureaucratic delays in fund release and utilisation processes.
Weak monitoring mechanisms leading to lack of accountability.
Suggested Measures
Implement fixed quarterly fund release schedules to ensure timely availability.
Strengthen real-time expenditure monitoring through PFMS and other digital platforms.
Establish inter-ministerial task forces for bottleneck resolution in scheme implementation.
Introduce outcome-based funding to enhance accountability and performance.
Address staffing shortages in key institutions like NCERT and Kendriya Vidyalayas to improve operational efficiency.
Conclusion
Emphasize the need for a holistic approach combining administrative reforms, better coordination, and robust monitoring to ensure effective utilisation of funds in school education schemes, aligning with the goals of NEP 2020.
Fact check
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