The upcoming Union budget 2024 to be tabled by this month's end is generating high expectations across various sectors. The education sector, in particular, is hopeful for key announcements addressing the skill gap and preparing the youth for Industry 4.0.
The Ministry of Education received its highest-ever allocation of Rs 1.12 lakh crore in Budget 2023, a moderate increase from the previous budget's Rs 1.04 lakh crore. However, this amount falls short of the 6 per cent of India’s GDP recommended by the National Education Policy, 2020. Out of the last budget's total allocation, the Department of School Education and Literacy received Rs 68,804.85 crore, while the Higher Education Department received Rs 44,094 crore.
Industry participants feel the budget allocation for education would increase, and reduced operational costs for stakeholders through tax cuts can spur innovation in the sector. Some call for GST on online learning platforms to be reduced and highlighted the need to bridge the digital divide, and run digital literacy campaigns.
Industry Expectations
Says Rohit Gajbhiye, CEO and Founder of an education-focused fintech LEO1, "Being in the edu-fintech segment, emphasizing partnerships between fintech companies and educational institutions for skill development is crucial."
"The budget can drive the industry forward by aligning educational advancements with economic needs, equipping the workforce with essential digital financial skills. Tax reliefs and subsidies to reduce operational costs, increased funding for research and development to spur innovation, and grants for training and professional development are also some key expectations," Gajbhiye said.
Mamta Shekhawat, Founder of Gradding.com said, "The interim budget was announced in February 2024, allotted Rs 47,619.77 crore to higher education. The budget allocation to education has been increasing annually, and the trend is expected to continue. The focus on NEP 2020 and NCF 2023 should continue and the initiative to develop 4.0 industry courses in furtherance of Budget 2023 will help the students. Some allocation should go towards bridging the digital divide and running digital literacy campaigns. "
"We expect the Modi 3.0 cabinet to allocate more funds towards the development of higher education institutes where research and practical learning are the utmost priority. The new budget is expected to be in favour of our tech-savvy youth which will drive our nation towards growth," Shekhawat added.;
