Karnataka RTE Row: Parents May Be Paying Hidden School Costs

Karnataka RTE Row: Thousands of parents paying private school fees in Karnataka could be unknowingly covering a portion of the state’s financial responsibility under the Right to Education (RTE) Act. A fresh allegation by the Karnataka Associated Managements of Schools (KAMS) has sparked concerns over how delayed reimbursements and outdated funding calculations are affecting both schools and families.

Private Schools Raise Alarm Over RTE Reimbursement Gap

KAMS has submitted a detailed representation to Chief Minister DK Shivakumar, claiming that the Karnataka government has failed to revise the Per Child Expenditure (PCE) despite a sharp rise in education spending over the past decade. According to the association, reimbursement rates paid to private unaided schools continue to range between Rs 8,000 and Rs 16,000 per student, even though the state’s overall education budget has increased from nearly Rs 20,000 crore to more than Rs 45,000 crore.

The association argues that this widening gap has created a serious financial burden for recognised private schools, forcing many of them to absorb costs that should have been reimbursed by the government.

How the Shortfall Impacts Parents

Under the RTE Act, private schools reserve 25% of entry-level seats for eligible children from economically weaker sections. Schools receive reimbursement from the government for these admissions. However, KAMS claims the current reimbursement amount falls well below the actual cost of educating each child.

As a result, schools reportedly recover part of the financial deficit through fees collected from the remaining 75% of students. According to KAMS, this indirect cross-subsidy means many parents may unknowingly be paying a portion of the government’s share.

The association also pointed out that private schools are often criticised for increasing fees, even though they say a significant portion of those increases is linked to unrecovered RTE expenses.

Affordable Schools Face Growing Financial Pressure

KAMS said the situation is especially difficult for affordable private schools serving lower and middle-income families. With reimbursement dues for the last two academic years still pending, several schools reportedly face challenges in paying staff salaries, maintaining infrastructure and upgrading classrooms.

School managements argue that prolonged delays in government payments have weakened their financial stability, making it harder to deliver quality education while complying with RTE obligations.

Association Questions Per Child Expenditure Formula

The association further alleged that the government calculates Per Child Expenditure using only five expenditure categories while ignoring more than 50 recurring cost components mentioned under the RTE Act and Karnataka RTE Rules.

After analysing Karnataka budget documents, finance accounts and Accountant General reports, KAMS estimated that the actual Per Child Expenditure for the 2026-27 academic year should range between Rs 40,000 and Rs 60,000 per student. This estimate is significantly higher than the reimbursement currently provided.

KAMS also claimed that around Rs 7 crore was recovered from schools following audit objections based on what it described as an incorrect interpretation of statutory provisions related to PCE calculations.

Key Demands Placed Before the Karnataka Government

The association has urged the state government to revise the Per Child Expenditure for the 2026-27 academic year using the formula prescribed under the law. It has also requested the government to publish the methodology used for calculating reimbursement, clear all pending dues and improve transparency in implementing the RTE reimbursement system.

Issue	Details
Current RTE Reimbursement	Rs 8,000–Rs 16,000 per child
KAMS Estimated Actual PCE	Rs 40,000–Rs 60,000 per child
Pending Reimbursement	Last two academic years
State Education Budget	Over Rs 45,000 crore
Main Concern	Schools and fee-paying parents bear the financial shortfall

Frequently Asked Questions

Question	Answer
What is the RTE reimbursement?	It is the amount paid by the government to private schools for students admitted under the 25% RTE quota.
Why are schools raising concerns?	Schools say reimbursement rates are outdated and do not cover actual education costs.
How does this affect parents?	KAMS claims schools may recover part of the funding gap through fees paid by other students.
What is Per Child Expenditure (PCE)?	PCE represents the government’s estimated annual cost of educating one student.
What changes are schools demanding?	They want higher reimbursement rates, payment of pending dues and greater transparency in PCE calculations.