Schools call ₹45 cr govt fund allocation ‘peanuts’ compared to ₹1,700 cr arrears
The Government Resolution (GR) issued on Tuesday has sparked widespread outrage among school managements and trustee associations.
MUMBAI: The Government Resolution (GR) issued on Tuesday, sanctioning ₹45 crore for reimbursing private unaided schools under the Right to Education (RTE) Act, has sparked widespread outrage among school managements and trustee associations. While the allocation aims to ease the financial burden on schools, providing free education to underprivileged children, stakeholders claim it is grossly inadequate against pending arrears exceeding ₹1,700 crore.

The decision comes after the school education minister’s recent meeting with the representatives of school managements. In the meeting, a management representative pointed out the struggle of running the school due to pending dues of 25% seats in the school.
SC Kedia, general secretary of the Unaided Schools Forum, called the allocation insufficient and “peanuts”. “The funds sanctioned are peanuts compared to the massive pending amount. The government must expedite reimbursements and allocate adequate funds to relieve schools of this burden,” he said.
Although a budgetary provision of ₹173 crore was made for RTE reimbursements for the financial year 2024-25, only ₹114.20 crore has been released so far. This includes ₹69.20 crore disbursed in September 2024 and the ₹45 crore sanctioned in the latest GR, leaving a staggering gap of unpaid dues.
Schools across Maharashtra allege that RTE reimbursements have been delayed for years, causing severe financial strain. Some trustees accuse the government of diverting funds intended for RTE to other educational initiatives, such as the Samagra Shiksha Abhiyan (SSA).
Sanjay Tayade-Patil, president of the Maharashtra English School Trustees Association, said, “In 2017, only half of the RTE dues were reimbursed, and the arrears have been piling up ever since. The union government allocates funds, but the state diverts them to projects like SSA instead of paying schools, following RTE rules. Schools are bearing the costs from their own pockets.”
In light of the government’s inaction, several schools have written to the state education department, warning that they will no longer offer free admissions to students from economically weaker sections (EWS) if reimbursements are not paid.
Under the Right of Children to Free and Compulsory Education (RTE) Act, 2009, private unaided schools must reserve 25% of entry-level seats for children from disadvantaged groups. The government is obligated to reimburse these schools for tuition fees. However, inconsistent payments have led to a significant backlog, leaving schools to shoulder the financial burden.

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