Govt has agreed to pay 70% to implement RTE Act

Updated on: Sunday, August 01, 2010

The Centre Govt has agreed to pay almost 70% of the finances required to implement the RTE Act, ending months of bickering with state governments crying over inadequate funds.

The finance ministry's expenditure finance committee (EFC) on Wednesday approved a massive hike in central funding for the law, which promises schooling to every child between 6 and 14 years of age.

The hike means 16 out of 35 states and union territories won't need to increase their education budgets to meet RTE commitments at all, government sources told us. Presently, the Centre and states share funding of the Sarva Shiksha Abhiyan, the principle vehicle for RTE, in a 55:45 ratio.

The HRD ministry has projected Rs 2,31,233 crore as the total cost over five years of implementing the law. The 13th Finance Commission has already set aside Rs 24,068 crore of additional funds to help the states implement the law.

The EFC agreed the Centre would pay 65 per cent of the remaining financial requirements- after deducting the Commission's award from the total projected cost. The 65 per cent, added to the Commission's award, works out to Rs 1,58,725 crore, almost 70 per cent of the total financial burden of Rs 2,31,233 crore.

"Finance minister Pranab Mukherjee has met HRD minister Kapil Sibal and indicated support for the extra funds," a source said. The HRD ministry had requested the finance ministry for a 75:25 fund-sharing ratio but is likely to accept the EFC decision. The ministry will now approach cabinet for its approval.

Most states have protested against a shortage of funds to implement the law, in operation since April 1. Non-Congress governments like Karnataka, Madhya Pradesh, Uttar Pradesh, Orissa, West Bengal and Chhattisgarh have even suggesting the Centre bear 90 per cent of the cost.

Govt has agreed to pay 70% to implement RTE Act

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