Impact of Budget on

Education Sector
• In the last year’s budget, Finance Minister Arun Jaitley
marginally reduced overall allocations towards education but
increased the planned higher education budget by nearly 22%,
which meant a shift in focus from school to higher education in
the national budget.
• About Rs.69,074 crore was allocated for education in 2015-16,
as against Rs.70,505 crore in the revised estimate in 2014-15.
• Out of the total outlay for 2015-16, Rs.42,219 crore was
pegged for the school sector and Rs.26,855 crore for higher
education.
 Highlights of the Budget : EDUCATION,
SKILLS AND JOB CREATION
• 62 new Navodaya Vidyalayas will be opened
• Sarva Shiksha Abhiyan to increasing focus on quality of education
• Regulatory architecture to be provided to 10 public and 10 private
institutions to emerge as world-class Teaching and Research Institutions
• Higher Education Financing Agency to be set-up with initial capital base
of ` 1000 Crores
• Digital Depository for School Leaving Certificates, College Degrees,
Academic Awards and Mark sheets to be set-up.
 New Schools or improving quality of
existing?
• It has been said that 62 more Navodaya Vidyalayalayas will be
opened and a digital literacy scheme for rural India will be
started.
• There are no indications how millions of government schools
will be improved to provide quality school education.
• If quality of education is improved it will result in reduction in
the drop out rate, decrease brain drain and also attract
foreign students.
 ‘Budget would benefit students and
financing system’
• The announcement on enabling regulatory architecture will be
provided to 10 public and 10 private institutions to emerge as
world-class teaching institutions should be praised for two key
reasons:
– It seeks to recognize the role of private sector in the education sector
– It stresses the importance of teaching as the vast majority of the
students who prepare for careers in the industry, inspired teaching
would be positive.”
‘Indian Education needs much more
than allocated’
• Creation of a Higher Education Funding Agency (HEFA)
has been announced with a fund of Rs 1,000 crore.
• It looks that it will be mostly used for redressal of the
problems of students seeking educational loan.
• Current outstanding educational loans may be around
Rs.50,000 crore.
• It is not clear that how a fund of Rs.1,000 crore will
resolve the massive requirements of educational loans.
‘Schemes for promotion of digital
literacy is a great initiative’
• We welcome the budget proposals of 2016-17 aimed at
promoting skill development, achieving higher literacy and
boosting education sector in the country.
• It is a great initiative and will go a long way in achieving
inclusive growth and boosting economic activity in the
country.
• It will help develop skills and make employees industry
ready and more employable leading to rise in employment.
‘Focus on higher education to help in
new job creations’
• Indian youth is under tremendous pressure due to lack of
jobs which is an outcome of poor employability prevailing
in our education system.
• If the skill development- digital scheme, improved quality
of education is implemented it may then reduce
unemployment.
• The greater focus on training and entrepreneurship,
especially in the rural sector, will help in faster economic
revival and overall development.