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The purpose of this paper is to examine resource allocation under the centrally sponsored scheme Sarva Shiksha Abhiyan (SSA) and its impact on development of elementary education in India. First, the author describes the current educational disparity across states in terms of state funding. Second, the author shows that interstate disparities in education resources have more to do with capacity of states to finance elementary education. For this, the author examines funding mechanism under SSA, focusing on principles of adequacy and absorptive rates. Third, the author analyzes the impact of additional funding on the progress of elementary education across states. Fourth, the author demonstrates how funding under SSA reinforces rather than reduces interstate disparity in school funding. Finally, the author concludes with certain policy implications for reforming federal transfers in Right to Education (RTE)-SSA, which can easily be extended to Rashtria Madhya Shiksha Abhiyan (RMSA) to be more responsive to educational inadequacy, effort and capacity across states.

The author uses box plots for illustrating interstate disparity across various indicators on financing and growth of elementary education. Box plots are good at portraying extreme values and illustrate differences between distributions. Because the thrust of the paper is examining difference in distribution across and within states, box plots appropriately portray the distribution of both. Further, coefficient of variation is estimated in education funding and its impact variables.

Interstate disparity in additional to the funding of SSA through discretionary transfers is examined by looking at two principles of inter-governmental transfers, viz., adequacy and absorptive rates. In a way, it appears that the educationally backward states getting the highest shares and also as per the requirement of the child population, but not necessarily so in terms of their relative proportions of enrolment, schools and teachers. Yet another revelation is that actual absorptive rates are much less than apparent absorptive rates. Unambiguously, additional resources coming from the Center for Development of Education can have a positive influence only after states have achieved a certain threshold level of absorptive capacities. As evidenced, fiscal disability is not compensated by transfers via SSA, as matching shares are uniform across states.

One significant limitations of the study is its use of administrative data. Often, administrative data from developing countries especially on social sector like education report inflated figures. The study uses primarily such but published secondary data sources.

Finally, the author suggests certain policy implications for reforming federal role in the current RTE-SSA, which can easily be extended to RMSA, a CSS in secondary education, to be more responsive to state effort and capacity.

Though SSA attempts to address regional imbalance, the accumulated initial advantage of better-off states with uniform norms under SSA funding widens the interstate disparity rather than reduce it. It is, hence, mandated to look at building capacities and enable states for a level-playing field.

It adds value to existing studies in two ways: rarely studies examine SSA expenditures and its impact on development and financing of elementary education, and examine a question on horizontal equalization mechanism whether additional allocation under SSA induce or reduce interstate disparity.

The paper critically examines the program on Education for All (EFA) in India, namely Sarva Shiksha Abhiyan (SSA) in a financing and development framework. In doing so, the paper identifies a number of policy and implementation gaps in the program. A fine-tuning of the existing matching shares by discriminating the matching shares in terms of need for, ability to provide matching shares and to strengthen the absorptive capacity could go a long way in attaining the horizontal equity in terms of every child completing elementary schooling in India. This would also ensure the other desirable principles of intergovernmental transfers such as predictability, transparency, and incentive mechanism besides improving utilization.

Further, it clearly emerges that only after ensuring the basic minimum levels in terms of physical and human infrastructure, and ensuring equal access to all the child population of age group of 6–14, quality is given priority. Thus, the challenge is both improving the qualitative and quantitative targets of UEE with enhanced resource allocation to education. Hence, Center is to ensure release of funding for SSA through special efforts as the program requires enormous funding and serious commitment of both central and state governments.

On the developmental aspects, the scheme not only widens social inequity but also perpetuates the declining quality of public provision by encouraging alternate schools and para teachers, besides the financing norms. These low-cost options will result in serious ramifications on equity, quality, balance, and sustainability of the basic education structure.

Indian education system is obligated to assure “accessibility” to the “quality” preschool education for all children. National Education Policy (NEP) 2020 has emphasised this endeavor loudly and provided clear directions to bring quality in the preschool education through effective implementation strategies. En route to this, trained and motivated preschool teachers are considered as the key factor for quality assurance. Diversity of the Indian society (language, culture, socio-economic status), variety of preschool service providers, different models of preschool education system, uneven salary structure, work load, shortage of support system, huge teacher children ratio, and unregulated sector of teacher preparation are the upfront challenge for the quality of preschool teachers and teacher education. Recruitment of trained preschool teachers, assured career growth, performance-based promotions and salary structure, regulated teacher preparation programs, adherence to the other quality standards for preschool education, digital/distance mode of obtaining required qualifications, and development of strong mechanism for monitoring; supervision as well as on-site mentoring of preschool teachers are some of the major milestones set by the government in the policy. With all this, the most important aspect is to provide encouraging and respectful environment for preschool teachers to keep them happy, contented, and motivated. The teachers, who are prepared in this way contribute in the lives of young children by creating warm and welcoming environment when they enter preschool. The NEP 2020 has brought hope, possibilities, and directions in this regard.

The concept of inclusive education has been largely debated and developed within a western context and its application within other cultural situations can be challenging. This chapter considers how the interpretation of inclusion within India is influenced by traditional values from within that society which may challenge some of the more conventional ideas within this area. In particular, consideration is given to the ways in which teachers and policy makers define those conditions that might support inclusive schooling and evaluate the ways in which schools are responding to change.

The legislative progress in India to make education inclusive has shown promise over the past few years. However, the process of implementation does not match up to it. The objective of education is to include students with special needs in regular schools where required preparation and support is not enough. Inclusive practices are seen in physical infrastructure as well as in the curriculum and educational activities. Support means not only financial assistance but also preparing schools, heads of schools, teachers, students, and communities to be inclusive in their minds and actions. In addition, it should be reflected in student outcomes in terms of academic and social participation. To begin with, several positive sparks could be seen in schools in having a special educator, resource rooms, and adaptations in curriculum, teaching methods, evaluations, and an alternative education. Visibility and attendance of students with special needs in schools has increased which is a huge change. However, the question remains about their sustainability and outcomes. This chapter presents insights and practical aspects of inclusive practices, their implementation, and challenges for students with special needs in India.