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Synopsis Secondary education, sandwiched between the much acclaimed basic elementary education and the prestigious higher education, is subject to an ambivalent attitude on the part of the government as well as the general public. As pointed out by the International Commission on Education for the Twenty-First Century (1996): “On the one hand, it (secondary education) is often regarded as the gateway to social and economic advancement. It is accused, on the other hand, of being inegalitarian and not sufficiently open to the outside world and, generally, failing to prepare adolescents not only for higher education but also for the world of work.” As a result of this unenviable and somewhat mutually contradictory position. This stage has failed to attract the attention of scholars and researches for undertaking meaningful and relevant investigations in this area. This study is a modest attempt to fill a part of this vacuum. It intends to study the system of financing and development of secondary education in India and a few selected Indian states. the main objectives are an analyse the behavior of finance in this important sector, the adequacy or otherwise of the financial investment in school education and the role of the central and state governments as also of the community in financing and management of school education. In order to make a realistic appraisal of the situation at the ground level, selected institutions in five states-Goa, Karnataka, Gujarat, Punjab and Rajasthan have been taken up for an in-depth investigation. The main areas of investigation are: student enrolment, examination results, sources of income and pattern of expenditure etc. Besides, the grant in aid rules formulated by the state governments have been subjected to a critical review. Measures adopted by educational institutions to mobilize additional resources have been sought to be ascertained. As a part of the study, school authorities were requested to mention, in details, the general, administrative and financial problems faced by them. Their views were also solicited about the manner in which these problems could be solved. The study incorporates the gist of the views of the school functionaries. It is hoped that the study will throw light on the vexed problems of secondary school finance and other related issues and enable educational administrators, planners and other concerned organizations to bring about required changes in their policies and procedures of financing and management of secondary education. It is also expected to engender interest among the prospective researchers to undertake more probing investigations in this important area of education.