Tamil Nadu vs Centre: The Samagra Shiksha Funding Dispute: UPSC Current Affairs Story Arc
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ExploreCan the Centre stop a State's education funding because it refuses to teach a third language? Tamil Nadu is currently fighting for the release of ₹2,152 crore, claiming that constitutional mandates under the RTE Act are being held hostage by the National Education Policy (NEP) 2020.
Overview
This arc tracks an intensifying federal conflict between the Tamil Nadu government and the Centre over the Samagra Shiksha scheme. The dispute began when the Centre withheld educational funds because Tamil Nadu refused to implement the NEP 2020's 'three-language formula'. The conflict escalated from administrative demands to a complete zero-allocation for the 2024-25 cycle, eventually moving to the judiciary. While the Madras High Court initially sided with the state regarding RTE fund protection, the Supreme Court is now examining whether the Centre can legally link scheme compliance to the disbursement of essential educational grants. It represents a significant case study in fiscal federalism and the limits of the Centre's policy-making power in the Concurrent List.
How This Story Evolved
TN demands withheld funds (Seed) → Centre confirms zero allocation for 2024-25 (Item 2) → HC orders Centre not to withhold funds (Item 3) → Dispute reaches SC with Centre citing NEP non-compliance (Item 1)
- 2025-03-03: Tamil Nadu seeks release of Samagra Shiksha scheme funds
More details
UPSC Angle: Tamil Nadu seeks release of Samagra Shiksha scheme funds.
Key Facts:
- Tamil Nadu Chief Minister M K Stalin
- Sought release of Rs 2,152 crore
- Centrally-sponsored Samagra Shiksha scheme
- Funds withheld due to state's refusal to implement New Education Policy (NEP) 2020
- Disagreement over “three-language formula”
- 2025-04-04: Kerala, Tamil Nadu, and West Bengal Receive No Funds Under Samagra Shiksha Abhiyaan for 2024-25
More details
UPSC Angle: Kerala, TN, WB did not receive Samagra Shiksha Abhiyaan funds.
Key Facts:
- Kerala
- Tamil Nadu
- West Bengal
- Samagra Shiksha Abhiyaan
- 2024-25
- 2025-06-11: Don't withhold Tamil Nadu's RTE funds over NEP dispute: HC to Union Ministry
More details
UPSC Angle: HC: Don't withhold Tamil Nadu's RTE funds over NEP dispute.
Key Facts:
- HC instructed Union Ministry not to withhold Tamil Nadu's RTE funds
- 2025-09-03: Tamil Nadu & Samagra Shiksha Funds
More details
UPSC Angle: SC notice to Centre on Samagra Shiksha funds delinked from RTE.
Key Facts:
- Samagra Shiksha is an integrated scheme, announced in the Union Budget 2018-19, for school education covering complete pre-primary to senior secondary (up to class 12th).
- It is a Centrally Sponsored Scheme (partnership with States& UT).
- It Subsumed erstwhile Centrally Sponsored Schemes: Sarva Shiksha Abhiyan (SSA); Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Teacher Education (TE).
- Objectives: To implement SDG 4, Right to Education and New Education Policy.
- Coverage: 1.16 million schools, over 156 million students and 5.7 million Teachers of Govt. and Aided schools.
- Tamil Nadu opposed NEP's three-language policy, viewing its Hindi emphasis as a threat to regional linguistic diversity.
- The Madras HC directed the State to bear the entire financial responsibility for the 2025-2026 academic year.
Genesis
Trigger
On March 3, 2025, Tamil Nadu CM M.K. Stalin formally sought the release of ₹2,152 crore in pending funds, which the Centre confirmed were being withheld specifically due to the state's refusal to implement the NEP's three-language formula.
Why Now
The dispute peaked during the 2024-25 budget cycle when the Centre transitioned from partial withholding to zero allocation for non-compliant states like Tamil Nadu, Kerala, and West Bengal.
Historical Context
Tamil Nadu has a decades-long history of anti-Hindi agitations (1937, 1965) and has followed a strict two-language policy (Tamil and English) since the late 1960s, resisting the Centre's three-language formula.
Key Turning Points
- [2025-04-04] Zero allocation for 2024-25 confirmed for TN, Kerala, and West Bengal
Moved the conflict from a 'pending request' to a complete financial deadlock affecting education services.
Before: TN was negotiating for pending dues. After: The state faced a total halt of CSS education funds.
- [2025-06-11] Madras High Court intervention
The HC established that RTE funds (a legal/fundamental right obligation) should not be withheld due to policy (NEP) disputes.
Before: Centre argued all Samagra Shiksha funds are conditional on NEP. After: Judicial distinction made between statutory RTE funds and policy-based grants.
Key Actors and Institutions
| Name | Role | Relevance |
|---|---|---|
| M. K. Stalin | Chief Minister of Tamil Nadu | Directly petitioned the PM and moved the courts to release ₹2,152 crore, framing the issue as an assault on state autonomy and the two-language policy. |
| Union Ministry of Education | Nodal Ministry for Samagra Shiksha | Authorized the withholding of funds for 2024-25, arguing that Samagra Shiksha is an integrated scheme designed to implement the NEP 2020 in its entirety. |
Key Institutions
- Supreme Court of India
- Madras High Court
- Ministry of Education (MoE)
- Samagra Shiksha Abhiyaan (SSA)
Key Concepts
Samagra Shiksha
An integrated scheme for school education (Pre-primary to Class 12) that subsumed Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA), and Teacher Education (TE).
Current Fact: Announced in Union Budget 2018-19, it is the primary vehicle for implementing SDG 4 and the RTE Act.
Three-Language Formula
A policy requiring schools to teach three languages: Hindi, English, and a regional language in non-Hindi speaking states (or another modern Indian language in Hindi-speaking states).
Current Fact: Tamil Nadu's rejection of this formula in the NEP 2020 is the primary reason for the ₹2,152 crore fund freeze.
Centrally Sponsored Scheme (CSS)
Schemes funded partially by the Centre (usually 60:40 or 90:10) but implemented by the states on subjects typically in the State or Concurrent lists.
Current Fact: Tamil Nadu claims the Centre cannot use CSS funding as leverage to bypass the constitutional distribution of powers (Concurrent List Entry 25).
What Happens Next
Current Status
As of September 3, 2025, the Supreme Court has issued a notice to the Centre following Tamil Nadu's petition alleging that Samagra Shiksha funds have been illegally delinked from RTE Act reimbursements.
Likely Next
The Supreme Court will likely hear arguments on whether the Right to Education (a Fundamental Right) can be financially curtailed based on a policy (NEP) disagreement.
Wildcards
A potential out-of-court compromise where TN adopts certain NEP 'technical modules' without the language clause, or an SC ruling that redefines the 'conditionalities' allowed in Centrally Sponsored Schemes.
Why UPSC Cares
Syllabus Topics
- Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure
- Issues relating to development and management of Social Sector/Services relating to Education
- Government policies and interventions for development in various sectors
Essay Angles
- Cooperative vs. Competitive Federalism: The funding leverage
- The politics of language in Indian education
- Fiscal Centralism: A threat to state autonomy in the Concurrent List?
Prelims Likely: Yes
Mains Likely: Yes
Trend Signal: rising
Exam Intelligence
Previous Year Question Connections
- Tested if Education was included in the Concurrent List by the 42nd Amendment. — The current arc tests the limits of the Centre's authority over that Concurrent List entry via financial leverage.
- Characteristics of Indian Federalism (Residuary powers, Union/Concurrent lists). — This arc is a real-world application of the tension between 'Single Union' authority and 'Concurrent List' implementation.
Prelims Angles
- Funding ratio of Samagra Shiksha: 60:40 for most states, 90:10 for North East and Himalayan states.
- The 42nd Constitutional Amendment Act of 1976 moved 'Education' from the State List to the Concurrent List.
- Components of Samagra Shiksha: Subsumes SSA, RMSA, and TE (Teacher Education).
Mains Preparation
Sample Question: ‘The withholding of Centrally Sponsored Scheme funds to enforce policy compliance by States undermines the spirit of Cooperative Federalism.’ Discuss in light of the recent dispute between Tamil Nadu and the Centre regarding Samagra Shiksha funds.
Answer Structure: Intro: Define Samagra Shiksha and the current ₹2,152 cr dispute → Body 1: The Centre's argument (Uniformity, NEP goals, Integrated scheme logic) → Body 2: The State's argument (RTE Act mandate, Concurrent List autonomy, Language policy history) → Critical Analysis: Impact on students and the constitutional validity of conditional grants → Way Forward: S.R. Bommai case principles/Inter-State Council role.
Essay Topic: Federalism in India: Between Harmonious Pattern and Centralized Control
Textbook Connections
Indian Polity, M. Laxmikanth (7th ed.) > Chapter 87: National Integration > p. 606
Explicitly mentions that the three-language formula is still not being implemented in Tamil Nadu, leading to historical anti-Hindi sentiment.
Gap: Laxmikanth describes the formula as a general guideline; the arc shows the Centre is now using it as a hard financial conditionality.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > p. 185
Explains that Centrally Sponsored Schemes are implemented by State Governments on subjects under the State/Concurrent lists.
Gap: Does not cover the modern 'compliance-linked' funding mechanisms that have led to the current legal battle.
Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 5: NATURE OF THE FEDERAL SYSTEM > p. 67
Discusses 'Co-operative Federalism' as a compromise between conflicting considerations.
Gap: Basu emphasizes 'mutual trust'; this arc demonstrates a breakdown of that trust into 'confrontational federalism'.
Quick Revision
- ₹2,152 crore: Amount of Samagra Shiksha funds sought by Tamil Nadu.
- Budget 2018-19: Year Samagra Shiksha was announced, subsuming SSA, RMSA, and TE.
- Entry 25, Concurrent List: Education (placed here by 42nd Amendment, 1976).
- 60:40 Ratio: Standard funding pattern for Samagra Shiksha in Tamil Nadu.
- Section 12(1)(c), RTE Act: Mandatory 25% reservation for weaker sections (funded via SSA).
- June 11, 2025: Date Madras HC ruled that RTE funds shouldn't be withheld over NEP.
- September 3, 2025: Date SC issued notice to Centre regarding delinking of funds.
Key Takeaway
This dispute marks a critical shift where the Centre is utilizing the financial machinery of Centrally Sponsored Schemes to mandate compliance with non-statutory policies (NEP), testing the boundaries of India's fiscal federalism.
All Events in This Story (4 items)
- 2025-03-03 [Polity & Governance] — Tamil Nadu seeks release of Samagra Shiksha scheme funds
Tamil Nadu Chief Minister M. K. Stalin has requested the release of ₹2,152 crore pending for the centrally-sponsored Samagra Shiksha scheme, meant to support the provisions of the RTE Act. The central government has withheld funds for the Samagra Shiksha scheme in Tamil Nadu because the state has refused to implement the New Education Policy (NEP) of 2020, particularly the “three-language formula”.More details
UPSC Angle: Tamil Nadu seeks release of Samagra Shiksha scheme funds.
Key Facts:
- Tamil Nadu Chief Minister M K Stalin
- Sought release of Rs 2,152 crore
- Centrally-sponsored Samagra Shiksha scheme
- Funds withheld due to state's refusal to implement New Education Policy (NEP) 2020
- Disagreement over “three-language formula”
- 2025-04-04 [Schemes & Programs] — Kerala, Tamil Nadu, and West Bengal Receive No Funds Under Samagra Shiksha Abhiyaan for 2024-25
Kerala, Tamil Nadu, and West Bengal did not receive funding under the Samagra Shiksha Abhiyaan for 2024-25, impacting education services. Tamil Nadu's funds were withheld due to disagreements with the central government. A parliamentary committee has urged the immediate release of funds.More details
UPSC Angle: Kerala, TN, WB did not receive Samagra Shiksha Abhiyaan funds.
Key Facts:
- Kerala
- Tamil Nadu
- West Bengal
- Samagra Shiksha Abhiyaan
- 2024-25
- 2025-06-11 [Polity & Governance] — Don't withhold Tamil Nadu's RTE funds over NEP dispute: HC to Union Ministry
The High Court instructed the Union Ministry not to withhold Tamil Nadu's RTE (Right to Education) funds over the NEP (National Education Policy) dispute.More details
UPSC Angle: HC: Don't withhold Tamil Nadu's RTE funds over NEP dispute.
Key Facts:
- HC instructed Union Ministry not to withhold Tamil Nadu's RTE funds
- 2025-09-03 [Polity & Governance] — Tamil Nadu & Samagra Shiksha Funds
The Supreme Court has issued notice to the Centre after Tamil Nadu alleged that Samagra Shiksha funds were delinked from reimbursements under the Right to Education (RTE) Act, 2009. The Centre argued in the High Court that fund disbursement issues under Samagra Shiksha arose due to Tamil Nadu's refusal to implement National Education Policy 2020 (NEP 2020).More details
UPSC Angle: SC notice to Centre on Samagra Shiksha funds delinked from RTE.
Key Facts:
- Samagra Shiksha is an integrated scheme, announced in the Union Budget 2018-19, for school education covering complete pre-primary to senior secondary (up to class 12th).
- It is a Centrally Sponsored Scheme (partnership with States& UT).
- It Subsumed erstwhile Centrally Sponsored Schemes: Sarva Shiksha Abhiyan (SSA); Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Teacher Education (TE).
- Objectives: To implement SDG 4, Right to Education and New Education Policy.
- Coverage: 1.16 million schools, over 156 million students and 5.7 million Teachers of Govt. and Aided schools.
- Tamil Nadu opposed NEP's three-language policy, viewing its Hindi emphasis as a threat to regional linguistic diversity.
- The Madras HC directed the State to bear the entire financial responsibility for the 2025-2026 academic year.
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