It said the allocation of Rs 45,969 crore as against the projected requirement of Rs 85,019 crore would "compel the HRD Ministry to cut down or withdraw" from other schemes.
"The committee apprehends that insufficiency of funds could also lead to hindrance in the implementation of Sarva Sikshya Abhiyan-Right to Education (SSA-RTE) programmes which entails specific time-frame," the panel said in its report.
It was also critical of unused and under-utilised funds for various education related schemes, asking the Ministry to address the issue on an "urgent basis".
Under SSA for example, it said the unspent balance was to the tune of Rs 691465 lakh till December 31, 2011 while the unspent money under the Rashtriya Madhyamik Siskhya Abhiyan was Rs 103219 lakh.
Referring to the states with maximum amount of unspent balance under SSA, it sought to recommend the ministry to be "more vigilant in realising its fiscal responsibilities".
Such states are Madhya Pradesh, Uttar Pradesh, Bihar, West Bengal, Karnataka, Assam, Gujarat, Rajasthan, Odisha, Tamil Nadu and Chhattishgarh.
"The ministry should initiate steps for liquidating old pending utilising certificates and making the implementing agencies liable for the same. It should also pursue the issue of unspent balance with the state governments to ensure that allocated funds are utilised optimally and judiciously," the panel suggested. (More)