ABSTRACT:
The socio economic landscape of the country is rapidly changing. The Ministry of Human Resource Development is conscious about changing scenario and has been taking the steps to mitigate the adverse impact of growing 'exclusive-ism ' within the society, which would not be in the best interest of the future generation. This study has explored government financing of education in India and across the states of the country. Economic reform has certainly affected public expenditure on social sector in general and that on education sector in particular. The study concluded that state real per capita income, is found to significantly enhance educational expenditure at the aggregate level. Moreover, contrary to general perceptions, education expenditure at all levels has been significantly lower after liberalization in comparison with the pre-economic reform era.