Impact of Budget on the Education Sector

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Introduction

The Union Budget 2011-12 was presented amidst a generally optimistic growth outlook with notable improvements in private savings and investment rates as well as a resumption of private consumption demand. The Government has delivered on the task of elevating the GDP growth rate from 8% (FY 2010) to 8.6 % (FY 2011), while bringing down the fiscal deficit to 4.8% of GDP. Overall, the policy prescriptions outlined in the budget sends a signal that the general direction in which the economy is headed is on course to deliver high growth and therefore does not warrant any significant course correction.

Budget allocation of ` 52,057 crore for universalizing access to secondary education, increasing the percentage of scholars in higher education and providing skill training. Salient Features of the Budget: Budget allocation of ` 52,057 crore for universalizing access to secondary education. An allocation of ` 21,000 crore for Sarva Shiksha Abhiyan. The Government has been providing special grants to recognise excellence in universities and academic institutions. In the course of 2011-12, it is proposed to provide: 50 crore each to upcoming centres of Aligarh Muslim University at Murshidabad in West Bengal and Malappuram in Kerala; 100 crore as one-time grant to the Kerala Veterinary and Animal Sciences University at Pookode, Kerala; ` 10 crore each for setting up Kolkata and Allahabad Centres of Mahatma Gandhi Antarrashtriya Hindi Vishwavidyalaya, Wardha; ` 200 crore as one time grant to IIT, Kharagpur; ` 20 crore for Rajiv Gandhi National Institute of YouthDevelopment, Sriperumbudur, Tamil Nadu Pre-matric scholarship scheme to be introduced for needy SC/ST students studying in classes IX and X. (` 40 lakh SC/ST students to benefit from new scholarships.)

Statistics

Education industry was $57 billion in 2009 and is expected to reach $80 billion by 2012 According to government estimates, there are nearly 220 million children in the relevant age group, of which 4.6%, or nearly 9.2 million, are out of school. Under the Act, local bodies and state governments will undertake household surveys and neighborhood school mapping to ensure that all children are sent to school. Given the sheer scale of this programme and the complexities involved, a large number of issues need to be resolved. The Act mandates that even private educational institutions have to reserve 25% seats for children from weaker sections. The intent of the law is noble and the government must provide adequate budgetary support to ensure its success. The government has estimated a requirement of ` 1.71 lakh crore in the next five years for implementation of the RTE Act. This will put a huge burden on the government and it is hoped that it would not be at the expense of higher education. There has been a crisis brewing in the higher education sector in the country. The statistics tell the story. Though, with nearly 26,500 institutes of higher education (504 universities and university level institutions and 25,951 colleges), India has one of the largest education systems in the world, the gross enrollment ratio is estimated at just 12.4%. This compares poorly with the global

average of 23-54.6% for developed and 22% for Asian countries. India is poised to be the youngest nation in the world by 2020 with an average age of 29. Unless the policymakers are successful in doing an overhaul, the system of higher, technical and vocational education, to improve quality, relevance and access, India risks frittering away its demographic dividend. Young students in the State can now sport a smile. Higher education has received a big slice of the budget pie for 2011-12. As is the norm these days, both at the Centre and State levels, the higher education sector has received an increased allotment of nearly six per cent here. On the flip side, there is a marked dip in the allotment for upgrading existing facilities which might prove a dampener for young aspirants to realise their potential. It was a ` 1,605 crore hike for the sector last year that stood at ` 10,505 crore. The allocation now is ` 12,284 crore; thereby making education one of the top gainers this year. At the same time, the outlay for higher education is increased to ` 2,002 crore from ` 1,676 crore last year. Realising the need to improve the infrastructure in higher education institutes across Karnataka, the government has allocated ` 5 crore. A purse of ` 5 crore
Impact of Budget on the Education Sector | 3

has been approved for a postgraduate centre under Mangalore University at Kushalnagar in Kodagu district. The centre would be established during 2011-12. In a major decision, the government has also sanctioned 50 acres of land for the establishment of a new centre of the Indian Institute of Information Technology in Dharwad. Aimed at promoting art and vocational training, the government would spend ` 10 crore on developing the Music University, Janapada University in Shiggaon, Haveri (` 1 crore) and Lalithakala Academy. The government has also announced ` 10 crore to implement a slew of projects recommended by the Karnataka Knowledge Commission.

The recommendations include those on literacy and school education, higher education, vocational education, humanities and management, health services and knowledge networks. In the last budget, ` 80 crore has been allotted under the World Bank-assisted Technical Education Quality Improvement Programme and ` 76 crore for new buildings and equipment in 10 engineering colleges and 22 polytechnics. While 100 colleges got ` 50 crore for extending facilities to teach science and commerce, An amount ` 10 crore was earmarked last year for special training in language skills in the government colleges.

Conclusion

Finance Minister Mr. Pranab Mukherji presented balanced budget this year. Education sector got good allocations with a raise of 24% to ` 52,057 crore, over the last year. This is a positive sign in education sector but: The budget lacks allocation of funds for Teacher improvement and training that will encourage qualified people to look at teaching as a rewarding and challenging career choice. The budget also lacks emphasis on the K-12 sector in terms of school improvement, quality control etc- given that this sector in education has to be strengthened in order to prepare the skilled and innovative workforce of 2025.

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