Education is often seen as an essential social sector component. Since education is a source of input for creating long-term value in human capital, it is seen as an investment. Consequently, an increase in worker productivity leads to the expansion and advancement of the nation's overall economy. Financial resources play a major role in the educational sector's capacity to expand and enhance in quality. Education used to be the exclusive province of the states. But in order to guarantee that there would always be an abundance of high-quality, conveniently accessible, and equal educational options for everyone, the federal and state governments teamed up in 1976. In India, there is general consensus that there is a persistent shortage of resources for education, especially in rural areas. Education is a non-profit endeavor, but it also deserves special consideration because it is a developmental activity that impacts everyone. When making judgments, education planners ought to consider the significance of equity, efficiency, and diversity. The best approach to finance education would be to take into account both the short- and long-term benefits of learning.