The present paper analyses the trends and growth of public expenditure on education in Bihar. Expenditure on education is the most effective tools to raise the living standard of the people and eradication of poverty in the state. Investment in terms public expenditure on health and education is the requirement of the day for human capital formation that require for output growth. Government spending on education play vital role for inclusive, faster and sustainable growth of the state. It is found in the study that public expenditure on education has been increased continuously and seen improvement in educational outcome in the state. Plan and non-plan expenditure on education increased tremendously, expenditure on primary education given maximum priority but higher education neglected by the state government therefore, it should be taken seriously. It is also found that the percentage of public expenditure on education in Bihar is comparatively better at national level but far from the targeted 6 percent of GSDP. Special package from the central government is the urgent requirement for financing education and other development aspect of the state. Government must concentrate on quality education in every stage primary, secondary and higher level. For faster growth there must be investment in technical education like setting up new engineering institutes, IITs, IIMs management institutes and also invite private institute of imminence for knowledge revolution and optimal utilisation of quality human resources.

KEYWORDS: Public Expenditure, Equitable, Faster & Sustainable Growth, Quality Education, Higher Education.