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04 September, 2024
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On July 23rd, the Finance Minister of India announced the Union Budget 2024 which showed an 8% increase in the higher education funding. Before the Modi 3.0 budget announcement, experts from the education sector were keen to see the GDP percentage the central government would allocate for this sector. The education budget 2024 follows the vision of ‘Viksit Bharat’ which aims to make India a developed country by 2047. From access to high-quality education to exemption in GST and increased investment in the country’s skilled youth. This blog discusses the key highlights of the education budget 2024 in detail and how the experts view this budget.
As described by the Press Information Bureau, the main focus of the 2024 budget is on employment, skills, MSMEs, and the middle-class population. Smt. Sitharaman, the finance minister of India announced the Prime Minister’s package of five schemes to facilitate employment and skilling for 4.1 crore youth with an outlay of INR 4 lakh crore. In this year’s budget, INR 1.48 lakh crore is allocated to education, employment and skilling.
In line with the vision of ‘Viksit Bharat’, the budget 2024 has made efforts to prioritise nine sectors in order to generate sufficient opportunities for all. Here are the nine priorities of the budget 2024:
Resilience and productivity in agriculture
Employment and skilling
Inclusive human resource development and social justice
Manufacturing and services
Urban development
Energy security
Infrastructure
Innovation, research and development
Next generation reforms
While presenting the Union Budget 2024, Finance Minister Nirmala Sitharaman said that the funding for higher education is hiked by 8%. A budget of INR 47,619 crore has been allocated for the higher education sector under the umbrella of the Ministry of Education. Furthermore, the budget for the University of Grants Commission (UGC) is categorised into three areas: central universities, deemed universities and the UGC itself. As per Business Standard , one main highlight of the education budget 2024 is that funding for colleges associated with Central Universities would be shifted to the Central Universities budget from UGC’s budget. This marks a significant increase in the funding for Central Universities from INR 11,612 Crore in the previous budget to INR 15,928 crore in the current budget.
Here are quick highlights of the education budget 2024:
The revision of the skill loan scheme to facilitate loans of up to INR 7.5 lakh which holds a guarantee from a government-promoted fund. It aims to benefit over 25,000 students every year.
To cover a wider population of students, financial support with loans up to INR 10 lakh for higher education in domestic colleges/universities would be provided. Direct E-vouchers will be given to 1 lakh students every year. This loan has an annual interest subvention of 3%.
The budget for Deemed Universities under the Central Government has increased from INR 500 crore to INR 596 crore.
The UGC budget is increased by 9% compared to the previous year which is from INR 17,473 to INR 19,024 crore.
The budget announced a scheme for providing internships to 1 crore youth in five years in the top 500 companies. Allowance of INR 5,000 per month with one-time assistance of INR 6,000 would be given through CSR funds.
Employment Linked Incentive:
Under the Prime Minister’s package, three schemes would be implemented to provide employment-linked incentives.
The first scheme is for first-timers to provide one month’s wage of up to INR 15,000 for new joiners in the formal sector. The eligibility for this would be a salary of INR 1 lakh per month.
The second scheme is to incentivise employment in the manufacturing sector.
The third scheme is to support the employers. The government would reimburse employers up to INR 3,000 monthly for two years towards their EPFO contribution for each employee. This scheme aims to cover additional employment in all sectors.
Women’s Participation in the Workforce:
The budget stresses establishing working women hostels in collaboration with the industry.
This partnership aims to organise some women-specific skilling programmes and promotions for women SHGG enterprises.
Skilling Initiatives:
The centrally sponsored scheme aims to benefit 20 lakh youth in a five-year period.
It has plans to upgrade 1,000 industrial training institutes.
The course content and the curriculum will be aligned with the industry standards.
As and when required new courses would be introduced.
Here is the comparison of the funds allocated to the education sector in the union budget since 2019-2020.
Source: Deccan Herald
Here is a detailed view of the expenditure of ministries and departments and the budget estimates.
Source: Ministry of Finance
All the academicians and experts in the education industry had great expectations from the Union Budget 2024. After the announcement, many professionals from the education sector took no time to appreciate the education budget for 2024.
Prof. Mahadeo Jaiswal, Director IIM Sambalpur shares, “This year’s 6.8% increase in the education ministry’s budget highlights the government’s commitment to improve the education sector. The provision of financial support for loans up to INR 10 lakh via E-vouchers for students is a significant step towards making quality higher education more accessible.”
Mr. Warren Harris, CEO & MD, Tata Technologies reacted, “We commend the Indian government’s recent budget, which places a significant emphasis on youth skill development and employment opportunities. The proposed initiative to equip 20 lakh young people with relevant skills over the next five years is commendable and timely.”
Prof Nishith Gupta, Head & Professor, Department of Biological Sciences, BITS Pilani said, “This budget for healthcare, agriculture, biotechnology and lifescience reflects the government’s vision and intent to promote the R&D, prioritise education and provide employment-oriented skills and training. The prime minister’s package of five programmes for boosting education, employment, and skills is unveiled.”
*The reactions of the experts from the education sector have been taken from an article published in the Hindustan Time.
The Union Budget 2024 has made significant contributions to the education sector in the current fiscal year. From five package schemes to student loans, internship opportunities and a generous budget allocated to the higher education sector are significant steps for the upgradation of the Indian education sector. While people may have different opinions, the education budget 2024 shows a promising future for students and first-time employment seekers.
