The Education Cess Conundrum: Assessing Its Role in Shaping ‎India’s Education Expenditure

  • Authors

    • Adima Jain Senior Research Fellow (Commerce), Department of Accountancy and Law, Dayalbagh Educational Institute (Deemed to be University)‎
    • Muskan Malhotra Senior Research Fellow (Commerce), Department of Accountancy and Law, Dayalbagh Educational Institute (Deemed to be University)‎
    • Saumya Rai Research Scholar, D.A.V. P.G. College, Azamgarh, U.P
    • Simran Kaur Juneja Junior Research Fellow(Commerce), Department of Commerce and Business Administration,‎ J.V. Jain Degree College, Saharanpur
    • Prof. Pravin Saxena Professor, Department of Accountancy and Law, Dayalbagh Educational Institute (Deemed to be University)‎
    https://doi.org/10.14419/2axzn569

    Received date: July 30, 2025

    Accepted date: September 13, 2025

    Published date: October 14, 2025

  • Education Cess; Education Expenditure; Fiscal Policy; India’s Education System

  • Abstract

    Can a fiscal policy tool designed to augment education funding truly make a difference in a ‎country where educational disparities persist, and the quest for quality education remains an elusive ‎dream for many? This study delves into the education cess conundrum, examining the causal ‎relationship between education cess collection and education expenditure in India. Employing ‎linear regression analysis and validating the model using the Ramsey Test, our research reveals ‎intriguing insights into the efficacy of this policy instrument. Our findings suggest a significant ‎positive correlation between education cess revenue and government spending on education. This ‎indicates that the education cess has been a valuable source of funding for educational initiatives as ‎India continues to grapple with the challenges of educational development. However, the question ‎remains: can education cess be a game changer in shaping the country’s educational landscape ‎, bridging the gaps and fostering inclusive growth, or will it remain a drop in the ocean, lost amidst ‎bureaucratic inefficiencies, systemic flaws, and competing priorities. As policymakers and ‎stakeholders seek to harness the potential of the Education cess, this study’s findings attempt to explore ‎futuristic insights given the evolving nature of India’s fiscal policies. The implications of this ‎research are far-reaching with potential applications in education policy, fiscal planning, and ‎development strategy, making it a valuable contribution to the ongoing discourse on education and ‎economic development in India‎.

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  • How to Cite

    Jain , A. ., Malhotra, M. ., Rai , S. ., Juneja , S. K. ., & Saxena , P. P. . (2025). The Education Cess Conundrum: Assessing Its Role in Shaping ‎India’s Education Expenditure. International Journal of Accounting and Economics Studies, 12(6), 521-529. https://doi.org/10.14419/2axzn569