Time for Punjab to transform into education enabler
Embracing public-private partnerships and moving beyond the outdated monopoly of state delivery can elevate learning, foster innovation, and ensure value for public investment
As I follow ‘School Choice’ legislation making its way through the Texas House, I can’t help but think how valuable such reforms could be for Punjab and other Indian states. Back in India, my domestic help refused to send her children to the local government school. Instead, she committed nearly half her monthly salary to private school fees. Her story is not uncommon. The image of government schoolteachers knitting, chatting, or idling in near-empty classrooms isn’t a stereotype—it’s a reality for many, and a symptom of a system in dire need of reform.

Legal precedent is on the side of equity too. Under the Right to Education Act, India mandates a minimum 25% reservation for underprivileged students in private schools. Yet implementation was restricted by a regulation stating the quota only applied if no seats were available in nearby government schools. This clause was rightly struck down by the Punjab and Haryana high court, reinforcing that equity cannot be contingent on public sector capacity. The ruling affirms the constitutional value of choice and strengthens the case for a universal, enforceable school voucher system.
Radical reforms a must
The time has come for India, especially states like Punjab, to fundamentally rethink how we fund education, manage schools, and measure outcomes. For too long, we’ve conflated government delivery with public good, without asking whether those outcomes could be achieved more effectively through smarter, more accountable models. With the fiscal burden of an underperforming public education system growing each year, the political will to embrace radical reform must grow stronger. A school choice model—where government funding follows the student, not the school—is an idea whose time has come.
Most Indian states continue to operate under a centralised, top-down system, with state education boards overseeing thousands of schools and employing vast teaching bureaucracies. In Punjab for example, there are more than 19,000 government-run schools serving nearly 2.8 million students. Punjab’s education budget for 2025–26 is ₹17,975 crore. This amounts to a per-student public expenditure of approximately ₹64,000 annually. That ₹64,000—currently absorbed by the state system regardless of outcomes—should become a voucher or coupon that follows the child. Why not allow parents to direct that amount to a school of their choice, whether government, private, NGO-run, or otherwise?
Such a shift would transform the state’s role from education provider to education enabler. Parents would be empowered to choose the best fit for their child. Schools would be compelled to compete for enrollment based on quality and performance. If a private school charges ₹50,000 annually, the state could cover the cost through the voucher, and the school could waive or absorb the balance. Let public funding support student success, not institutional inertia.
Opponents may call this privatisation by stealth. But the goal is not to dismantle government schools—it is to make them compete fairly. A high-performing government school would still qualify for the voucher. But now, it would need to deliver real results to attract and retain students. The current system rewards longevity and headcounts. A choice-based model would reward outcomes. Strong public schools would thrive. Ineffective ones—whether public or private—would be outcompeted, as they should.
US’ ‘school choice’ model
There is international precedent for this. US states like Arizona and Florida have introduced voucher programs and education savings accounts. Sweden’s universal voucher system has led to the proliferation of tuition-free, high-quality private schools under government oversight. In India, pilot programs in Gujarat and Andhra Pradesh have shown measurable learning gains among students who received school choice vouchers.
The fiscal case is equally compelling. Education is among the top three bureaucratic employers in Indian states, alongside the civil services and state electricity boards. In Punjab, more than 52% of the education budget goes to salaries and pensions—a structural cost that escalates each year, regardless of learning outcomes. Simply raising funding without restructuring how it’s spent deepens inefficiency. In contrast, a rental-plus-voucher system—where the state leases infrastructure to private operators and funds students directly—could dramatically cut waste and foster a new generation of education entrepreneurs accountable to parents, not ministries.
Imagine the government leasing school buildings to private operators—educational trusts, NGOs, or socially responsible corporations—who then run the schools, hire staff, and are paid based on enrollment and student performance with vouchers per child. Lease payments due to Government could be deducted from the voucher amount, saving government resources and monetizing infrastructure. Where no lease is needed, the full voucher amount would be paid toward tuition. Transparent audits and performance tracking would ensure accountability and safeguard public money.
Political will is key
Yes, reform would require political will. Unions may resist. Bureaucrats may feel threatened. Equity concerns will surface. But none of these challenges are insurmountable. Teachers can be retained under new systems or offered early retirement. Minimum access quotas for disadvantaged students can be mandated by law. Technology can monitor outcomes, and third-party audits can ensure transparency.
India’s education spending has long hovered between 2.8% and 3.1% of GDP—well below the recommended 6%. This chronic underinvestment, paired with ineffective delivery, has left schools under-resourced and learning outcomes poor. Punjab, like many states, simply cannot afford to spend ₹64,000 per student and continue to produce children who cannot read or do basic math. If such a significant investment fails to deliver foundational skills, then the system is broken.
A model where money follows the student—where choice, competition, and outcomes drive improvement—is not just bold. It is necessary. Embracing public-private partnerships and moving beyond the outdated monopoly of state delivery can elevate learning, foster innovation, and ensure value for public investment. With thoughtful design, accountability, and safeguards, India can build a system worthy of its children. The time to act is now.
(The writer is a retired Indian Revenue Service officer. Views expressed are personal. punamsidhu@gmail.com)