The union budget for the year 2010-11 was announced by FM as ‘inclusive’ budget, seems not to include children who are over 42 per cent of our population. Out of every rupee spent in the budget, only 4.63 paise was allocated to children. The gap between the funds allocated and the funds actually released in the areas like education, health, development and protection is very wide. Despite an increased allocation to elementary education about 52 % of children are either not attending school or dropping out before class eight which indicated the far reaching goal of Universal Elementary Education. The allocation for child development and health has increased but it is quite inadequate as revealed from high incidence of infant and maternal mortality, malnourished or under nourished children. Despite the massive immunization programme, still many children are highly affected by Polio. The budget provides least attention to the protection of children. India is featured with the highest working children in the world, increasing rate of crime against children and highest number of sexually abused children in the world. Added to this, juvenile crimes have gone up over the years. In this background, inclusion of children in the budget in respect of education, health, development and protection merits great significance particularly for the state of Odisha where 39 percent of the population belongs to the vulnerable groups. The study is expected to capture the expenditure and allocation over last few years and analyse the micro-macro picture of education sector in specific and provide inputs for further policy and programming in the state.