Which state government spends the least on education, and what is the budget amount?

Find out which state in the country spends the least on the education of its future generations, and discover how startling data from PRS exposes the reality of government priorities.

India is known as the country with the youngest population in the world, and the future of any nation's youth depends on its education system. The Government of India's National Education Policy 2020 recommends that the Centre and states collectively spend at least 6 percent of their GDP on education. However, recent government data, along with reports from the RBI and NITI Aayog, reveal a starkly different picture in many states. Several surprising figures regarding education expenditure at the national level have come to light. Let us identify the Indian state where the government spends the smallest share of its budget on education.

These states are paying the least attention to education.

According to the latest government data, Telangana and Karnataka top the list of states spending the least on education relative to their Gross State Domestic Product (GSDP) and total budget. When viewed as a percentage of their total economic output, Telangana and Karnataka spend only around 1.3 to 1.7 percent on education—among the lowest allocations in the country.

A recent NITI Aayog report on higher education also highlights that while states like Delhi prioritize education at the very top of their budgetary agenda, states like Telangana and Karnataka lag significantly behind in expenditure on both higher education and overall school education.

What is the budget for these states?

In terms of figures and budgeting, the country's total central education budget for the current financial year has been set at approximately ₹1.39 lakh crore. At the state level, while large states like Maharashtra are allocating a massive, record-breaking budget of approximately ₹1.05 lakh crore for education, several southern and central Indian states are spending significantly less in relative terms.

For instance, Telangana—one of the states with the lowest allocation ratios—has an annual education budget ranging between ₹27,663 crore and ₹44,054 crore. In contrast, states like Madhya Pradesh (approx. ₹52,917 crore) and Gujarat (₹63,184 crore) are far ahead in terms of absolute spending; however, in states considered IT hubs—such as Telangana and Karnataka—the percentage of the total government budget allocated to education is steadily declining.

What are the primary reasons behind this low expenditure?

Several administrative and economic factors are being cited for the reduced education budgets in these states. A major reason is that states like Telangana and Karnataka are currently prioritizing infrastructure development.

Another significant factor is the implementation of populist freebie schemes, which consume a substantial portion of the budget. Consequently, the government is left with insufficient funds for the social sector—specifically for the modernization of government schools and colleges and the recruitment of new teachers.