Centre Withholding 1500 Crore in Education Funds, Kerala Allocates 40 Crore to Avert Crisis

Thiruvananthapuram: The Kerala government has sanctioned an additional Rs 40 crore to the Samagra Shiksha Kerala (SSK) programme to address a growing financial crisis caused by the Centre’s continued denial of its rightful share of funds. The newly released amount will cover the May salaries of employees and provide school uniforms for students across the state.
The Samagra Shiksha programme, a joint initiative between the central and state governments, is designed to strengthen school education infrastructure and inclusivity. However, the Centre has withheld funds citing Kerala's refusal to convert 336 state-run schools into PM SHRI schools, as required by a central directive. The state rejected the move, asserting that education is a state subject under the Constitution and that such conditions infringe upon its autonomy.
The fund freeze has severely impacted school operations, especially the disbursal of salaries and implementation of basic student services. This prompted the Kerala government to release an additional Rs 40 crore, just months after having to allocate extra funds to ensure continued education for differently-abled students and other marginalised groups.
The Centre is currently withholding ₹1,500.27 crore in dues owed to Kerala under the general education sector. For the financial year 2023–24 alone, the state was entitled to Rs 513.54 crore under the SSK scheme, but none of the two final instalments have been disbursed. The Centre’s contribution to the scheme, a constitutional obligation, remains pending even as the state continues to bear the financial burden to keep schools functional.
According to the Centre’s PM SHRI guidelines, two schools in every Block Resource Centre must be selected for central branding and follow a curriculum that will be decided by the Union government. Kerala has refused to comply with this condition, arguing that it is a step toward saffronising the public education system. The state government maintains that education policy must remain a state subject under the federal structure of the Constitution.
With no indication of a policy shift from the Centre, Kerala is preparing to challenge the fund freeze through legal means. Other states, including Tamil Nadu, have raised similar objections to central encroachments in the education sector. Kerala has also pointed to judicial observations affirming that states cannot be forced to implement centrally designed schemes like the PM SHRI or the National Education Policy 2020 without voluntary consent.