Abstract
Education plays a crucial role in the development of a nation, shaping its social, political, cultural, educational, and scientific progress. Public expenditure on education is often considered a strong indicator of a country’s future prospects. This study examines the patterns of state government financing of higher education in the northeastern states of India, focusing on Assam, Tripura, Arunachal Pradesh, and Mizoram—an underexplored region in educational finance research. It investigates how government spending influences the quality of education, the execution of educational policy frameworks, and the alignment with the goals of the National Education Policy (NEP) 2020. Framed within the context of resource allocation theory, the study highlights the challenges these states face in achieving the policy’s vision of equitable and excellent education. Data for this study has been sourced from appropriation account reports of the respective state governments. The findings reveal a consistent lack of significant changes in government expenditure on higher education over the past four years. Additionally, the distribution of funds shows a distinct imbalance, with a heavier emphasis on the revenue head compared to the capital head. This disparity underscores inadequate investments in infrastructural development, which is essential for achieving NEP2020 goals. These financial constraints are likely to hinder the quality of education and the region’s progress.
Keywords: Higher Education Financing, North-East India, State Government Funding, State Appropriation Accounts