"Of the 2.68 per cent of GDP in 2015-16, elementary education accounted for 1.55 per cent and secondary education was allocated 0.9 per cent of GDP with the remaining being spent on school-education as a whole," it said.
The study was conducted by the Centre for Budget and Governance Accountability (CBGA) and CRY, which looks at the overall scenario of budgetary spending (including central and states' funds) on education from classes I to XII.
The study shows poorer and educationally under-performing states have accorded higher priority to school-education than the better performing states in the post-RTE Act phase.
"India's budgetary spending on education is inadequate not just because it falls short of the benchmark recommended by the Kothari Commission, but also due to paucity of funds in almost all important areas of public provisioning of school education," Subrat Das, Director of CBGA said.
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According to the study, the 'per child' budgetary spending in states varied from Rs 8,526 per annum (in Bihar) to Rs 18,035 per annum (in Maharashtra) in 2015-16, while the 'per student' budgetary spending varied from Rs 9,583 (in Bihar) to Rs 28,630 (in Maharashtra) in 2014-15.
States like Bihar, Jharkhand, Chhattisgarh and Odisha, which have large numbers of vacancies for teachers, are spending less than 60 per cent of their school education budget on teachers' salary, Kundu said.
Teachers' salary is not the reason for under-funding in other important areas. Rather, it is the overall deficiency of budgetary resources for school education in most of the states that is at the root of the problem, the study reveals.
"Private schools too are an important beneficiary of government financing for school education. The study shows how significant proportions of budgetary spending on school education are channelised towards government-aided and unaided private schools," she said.