Centre, states to share funds at 65:35 ratio for RTE

Updated on: Saturday, July 31, 2010

Ending the controversy over sharing of funds and paving the way for implementing the historic Right To Education (RTE) law, the government has fixed the funds sharing pattern at 65 to 35 between the Centre and the states for the next five years.

There will be a requirement of Rs 2.31 lakh crore in the next five years for implementing the new Act which makes education a fundamental right of every child.

The Expenditure Finance Committee (EFC) under Finance Ministry has agreed to the fund sharing formula keeping in view demands of states for higher assistance from the Centre to implement the Act which has come into force from April one this year.

The EFC gave its clearance yesterday, an HRD Ministry official said. The clearance came after HRD Minister Kapil Sibal met Finance Minister Pranab Mukherjee and explained the concerns of the states on the issue.

The Finance Commission has already given Rs 24,000 crore to the states for implementing the Act. If this money is included under the Central assistance, the Central share could go up to 68 per cent, the official said.

States like Uttar Pradesh and Bihar had even demanded full funding from the Centre for implementation of the law. Most of the states had demanded 90 per cent funding by the Centre for this Act.

Centre, states to share funds at 65:35 ratio for RTE

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