The Odisha government’s recent move to provide free education from kindergarten (KG) to postgraduate (PG) level in all government institutions is being widely recognised as progressive and transformative welfare measure. There is no denying the fact that such a policy shall be instrumental in reducing the financial burden on poor households, fostering educational inclusion and advancing human capital formation by eliminating tuition fees across the education spectrum. Nevertheless, a closer examination into the existing education system raises several crucial questions regarding its capacity to supply what it promises.The intent of the policy is primarily demand driven, where fee waivers and subsidies lower the private cost of education and incentivise participation. However, a higher demand in the public education system can only translate into meaningful educational outcomes, if it is met by a corresponding increase in the supply-side capabilities such as availability of teachers, classrooms, laboratories, digital infrastructures and academic resources. Therefore, the success of the KG-PG agenda largely depends not only on the state’s ability to finance free education but also on its willingness to address the longstanding supply-side deficiencies. A review of recent audit reports – CAG Performance Audit on School Education, Government of Odisha, 2025 and CAG Report on Higher Education, Government of Odisha, 2021 – and educational indicators suggest careful consideration regarding the absorption and sustenance of the demand pertaining to Odisha’s educational infrastructure. Who will teach and where will students learn?The free education policy in the state is expected to increase participation in education but the current teaching capacity raises serious concerns on whether the system can adequately absorb the resultant rise in demand. The performance audit of school education by the Comptroller and Auditor General (CAG) reports that teacher shortage remains a persistent challenge at school levels. In 2022-23, 48% of Odisha’s primary schools and 43% of upper-primary schools had adverse pupil-teacher ratios. The audit reported a shortfall of 35,303 teachers in the primary and upper-primary levels. Recruitment efforts have also been poor with thousands of sanctioned posts vacant. The problem seems to be more acute the higher one goes up the educational ladder. Almost 89% of higher secondary schools reported adverse pupil-teacher ratios and 42% of them did not have the prescribed number of subject teachers. Similar is the case with the faculty shortages in higher education institutions. Many major universities reported vacancy rates ranging from 34-38 %. Shortages affect classroom instruction, individual attention to students, delivery of curriculum and ultimately learning outcomes. In this context, expanding access through free education without a parallel expansion of teaching personnel may amount to increasing enrolment in already overstretched institutions. The CAG audit also found that a large number of schools lacked basic amenities necessary for a conducive learning environment. Over a third of schools had no boundary walls, over a quarter had no playgrounds and close to half had no accessible toilet facilities for children with special needs.The picture is no less bleak in terms of learning infrastructure. Almost 72 % of schools did not have Information and Communications Technology (ICT) facilities, 71% did not have smart classrooms and 62% lacked adequate furniture. Physical verification of schools revealed that many institutions were conducting more than one class in a single classroom while a large number of students were still sitting on the floors due to non-availability of furniture. The quality of education imparted is further compromised by overcrowded classrooms, poor sanitation facilities and laboratory infrastructure. Similar problems exist in higher secondary and higher education institutions. Enrolment-learning divideResearch has repeatedly demonstrated the distinction between enrolment and learning outcomes. The latter remain a concern despite improvements in access and enrollment over the years. Only around 1% of Class X students scored above 90% in 2022-23. The majority of successful students were in lower grades in the exam conducted by the Board of Secondary Education, Government. of Odisha. The situation seems to be no different in the higher secondary level. Another primary motive behind the expansion of education includes empowering students with employable skills to make their transition into the labour market smoother. This is where vocational education attempts to bridge the gap between formal education and employment. The success of imparting vocational education depends to a great extent on the availability of specialised infrastructure, equipment and trained instructors. The CAG audit exposes significant supply-side gaps in Odisha’s vocational education ecosystem. The state planned to introduce vocational education in 877 schools between 2018-23 but could only implement it in 646 schools by March 2023. What is more concerning is the fact that several schools offering vocational programmes across the state lacked functional vocational laboratories, while many Government Vocational Higher Secondary Schools were operating without dedicated laboratory infrastructure despite offering technical and skill-oriented courses. In the absence of trained resource persons, programme delivery is evidently hampered which is reflected from a very small proportion of students finding employment or self-employment opportunities despite many having completed vocational courses.Question of absorption and implementational challengesThese shortages have continued to contribute to poor student-teacher ratios and placed additional burdens on the existing faculty. The audit identifies low completion rate of research, and patent generation alongside a modest research output in the examined universities. Furthermore, inadequate curriculum updates have limited the ability of academic programmes to respond to evolving labour market demands. Though placement rates varied widely across institutions, in several instances, the employability outcomes were extremely low, reflecting weak industry linkages, poor placement support and limited career guidance.A gap between policy declarations and institutional capacity to implement them effectively may be more prominent with the unresolved split between higher secondary and higher education institutions. While the state formally announced the separation of higher secondary education from higher education administratively in 2016-17, the physical and institutional separation of campuses has remained largely incomplete. The reasons for the delay in bifurcation are attributed to shortage of infrastructure, pending land issues and inadequate faculty strength. The survival of composite campuses speaks to a larger issue of educational governance where the growth of policy has often outpaced investments in physical infrastructure and institutional capacity. This is another case of mismatch between the demand generated by policy interventions and the supply of educational services.A way forwardThe motivation of providing free education in Odisha is both desirable and socially progressive. However, the policy will only be successful if the state can strengthen the institutional norms and regulations responsible for the delivery of education. Odisha’s move towards greater accessibility can then be translated into meaningful learning, skill enhancement and employability. Recruitment must be accompanied by continuous professional development and teacher training to enhance classroom effectiveness, thereby improving the pupil-teacher ratio. Given Odisha’s strong fiscal position indicated by the Fiscal Health Index 2026, a dedicated educational infrastructure fund could address these gaps. Aurolipsa Das serves as an Assistant Professor in Department of Economics, Eswari School of Liberal Arts, SRM University – AP.