Edu Budget 2024: Optimising Resources For Better Learning Outcomes

Dr Anil Agrawal Jul 22, 2024

The Edu Budget 2024 underscores the need for strategic investment in early education, teacher training and effective fund utilisation to improve learning outcomes in India. While increased spending has not yet translated into better educational results, targeted reforms and longer-term fund disbursements could drive significant progress

Every budget season, there is a consistent demand to increase the budgetary allocation for education, advocating for spending to reach six per cent of GDP, as recommended by the National Education Policy (2020). Greater social spending on sectors like education can indeed boost economic growth, promote equity and reduce poverty, but this is contingent on the education system's ability to ensure good learning outcomes. In India, however, higher spending hasn’t translated into better learning outcomes. Despite the Union Government's education spending increasing by 19 per cent between 2015-16 and 2021-22, 80 per cent of children are still unable to read with comprehension or perform basic mathematical operations by the time they reach grade three.

If we expect education expenditure to boost economic growth and promote well-being, we must focus on allocations within the education sector that yield the highest social returns and ensure effective utilisation. Investing in basic education to achieve foundational literacy and numeracy (FLN) is one such high-return investment. A strong FLN foundation is essential for a child's success in future grades. Moreover, given that we have universal enrollment in schools, investing in early grade education will impact all students.

Recognising India’s learning crisis, the Government of India launched the National Initiative for Proficiency in Reading with Understanding and Numeracy (NIPUN) Bharat Mission in 2021. This initiative aims to ensure that every child achieves the desired competencies in reading, writing and numeracy by the end of Grade 3 by 2026-27.
Since its launch in 2021-22, the NIPUN Bharat Mission has seen over Rs 6,000 crores allocated to states, with the Union Government contributing 60 per cent of the total expenditure and states contributing the remaining 40 per cent. However, the massive learning loss during the pandemic, coupled with the delay in launching the mission and low state capacity, has led to suboptimal utilisation of these resources, resulting in low learning outcomes. To maximise the impact of these investments, it is crucial to reform the financing structures and implementation framework to ensure the delivery of universal high-quality foundational literacy and numeracy (FLN).

The Government of India disburses funds for the NIPUN Bharat Mission annually through their Project Approval Board (PAB), basing the amount on states' proposals and utilisation certificates from the previous financial year. However, the crisis within the crisis is that, due to limited administrative capacity at both central and state levels, these grants are typically released in the last quarter of the year. This timing often compels states to rush expenditure within the quarter or risk losing similar allocations in the subsequent year.

To address this issue, the Government of India should transition from annual disbursements to three-year rolling disbursements. This approach would give states more time to utilise the funds efficiently and to assess the impact, thereby enabling better planning and more effective use of resources for improving learning outcomes.
Once states have a longer time frame to utilise the funds, they could revamp their implementation framework for NIPUN Bharat Mission to focus on programmes that will have the highest impact on learning outcomes at early grades. The four key areas that they should heavily invest in to strengthen FLN skills of our students are early childhood education, teacher training and sustainability through community.

Early Childhood Education is the step zero for FLN as it imparts the essential skills to make the child ready for school. The National Education Policy (NEP) 2020 highlights that 90 per cent of a child’s brain development occurs before the age of six and good quality ECE can result in a 14 per cent increase in future earnings. Despite this, only 20 per cent of government schools offer pre-primary education and a mere 8 per cent have dedicated ECE teachers. Furthermore, these teachers spend only 35-38 minutes on ECE activities, far short of the stipulated two hours. The most neglected cohort is the five to six year-olds, with only six out of ten, five-year-olds enrolled in an ECE classroom in India.

To address this in the mid-term, states must invest in school readiness programmes like Vidya Pravesh–a three-month-long play-based school preparation module for students entering Grade one. Although such a module is budgeted for in the central budget, only one state has applied for it in the last three years. Additionally, in the long term, states must invest in hiring more ECE educators to increase the time spent on play-based learning. Such measures would ensure that children are ready to learn before they enter Grade one.

The second priority should be investing in teachers to enhance their teaching practices. Despite teacher salaries accounting for up to 80 per cent of the total education budget in many states, only 2.4 per cent of funds were sanctioned by the central government for teacher capacity building in 2022-23, primarily because most states did not request for these funds. Continuous professional development through training and structured pedagogy can motivate teachers and improve their performance. Studies indicate that a 1 per cent improvement in teacher management in public schools can lead to a 0.26 per cent increase in better teaching practices and a 0.34 per cent increase in student learning outcomes.

Third, states should invest in school-based assessments. While a significant portion of funds has traditionally been allocated to large-scale assessments, some funds should be diverted to empower teachers to regularly measure their students' progress through formative assessments. Uttar Pradesh has pioneered a cost-effective solution with the launch of the NIPUN Lakshya app. This app allows teachers to conduct weekly assessments and record the data, making their interventions more data-oriented and providing senior officials with greater visibility into learning outcomes. By adopting similar tools and approaches, states can ensure continuous, real-time tracking of student progress and make informed decisions to improve educational outcomes.

Finally, states must invest in creating a behavioural change to sustain the mission. The most cost-effective way to achieve this is through awareness campaigns. In 2022-23, the central government allocated Rs 3.29 crores for the 'Display of Lakshyas and Targets' and in 2023-24, an additional Rs 1.54 crores were allocated specifically for information-related programmes to raise awareness of foundational literacy and numeracy (FLN). To create a disproportionate impact and foster long-term support and commitment to the mission, this allocation should ideally be expanded to 5-15 per cent of the total mission budget, like the Swachh Bharat Mission. This increased investment in awareness campaigns will ensure that all stakeholders are informed, engaged and motivated to contribute to the mission's success.

Given the dual challenges of the learning crisis and limited government budgets, it is crucial to prioritise intelligent investments that yield long-term results. Both states and the Project Approval Board (PAB) must be aligned with this approach. By giving states more time to utilise the funds, we can ensure more effective spending. Additionally, focusing on early childhood education to foster proper cognitive development, empowering teachers with the necessary skills and data to enhance their teaching practices and fostering collective efforts from citizens to meet the mission's targets are essential steps.

As the World Bank has stated, "India is in a period of unprecedented opportunity, challenge and ambition in its development," and these strategic investments will empower every child to take part in this unprecedented opportunity. By creating an ecosystem that provides equitable opportunities and ensures collective well-being for all, we will lay a robust foundation for sustainable development and social equity.