While the central government's contribution in education, as a percentage of gross domestic product (GDP), has been steadily increasing to 0.91 percent in 2009 from 0.53 percent in 2000-01, the allocation of the states has shown an average decline from 3.76 percent to 2.73 percent in the corresponding period.
Sibal also asked the officials to have a quality controller to assess and inform the people about the institute, college or the university.
The minister said the states should also have an 'accreditation system for their colleges'.
The accrediting agency would benchmark the institutes in the respective states, informing students about the quality and resources of the institution they are going to attend.
'This would help create competition among institutions leading to their improvement,' said Sibal, adding that state governments should also fill up faculty vacancies.