How Can Interim Budget Impact Education Sector

As we approach the upcoming Interim Budget, there is anticipation and scrutiny, especially in crucial sectors like education. With the impending General Elections in 2024, the Union Finance Minister, Nirmala Sitharaman, is set to present an interim budget, a tradition followed during election years. This article delves into the possible ramifications for the education sector and reflects on the trends observed in the previous fiscal year.

From outlays to outcomes

The interim budget is not expected to make sweeping changes in the education sector, considering its transitional nature. However, it serves as a crucial checkpoint to assess the utilisation of funds allocated in the Union Budget for 2023-24. The claimed 13 per cent increase in allocation for education, as compared to the preceding fiscal year, warrants closer scrutiny. The revised estimates for the 2022-23 fiscal year raised concerns as the spending on general and technical education was reduced by Rs 2,744 crore from the budget estimate. In the upcoming interim budget, attention should be directed to assess whether this declining trend has been reversed or it persists.

Mere allocations are insufficient; the focus should shift to ensuring that the budgeted funds approved by the parliament are fully utilised. The figures in the interim budget will reveal the actual utilisation of funds in the 2023-24 fiscal year, providing insights into the government's commitment to enhancing the education sector.

Assessment of key initiatives in education in 2023-24 budget

The Union Budget for 2023-24 unveiled several significant initiatives, ranging from teachers' training to digital infrastructure and the establishment of nursing colleges. The allocation of resources for these initiatives is pivotal and the interim budget will shed light on whether the approved funds have been effectively utilised. Initiatives such as the recruitment of teachers and support staff for Eklavya model residential schools, setting up 100 labs for 5G services in engineering institutions and the development of district Institutes of education and training are critical for the advancement of the education sector. It is imperative to ascertain if these initiatives have received the necessary financial backing and if the allocated funds have been judiciously spent.

Enhanced expenditure in higher education needed

Given the interim nature of the budget, major changes or impact on universities are not anticipated. However, looking ahead to the main budget after the General Elections will be crucial for the education sector. Health and education are integral components of the Human Development Index, and their expenditure should align with the needs of these sectors.

The percentage of GDP allocated to education has seen a marginal increase from 2.8 per cent in FY 19 to 2.9 per cent in FY 23. While any increase is welcome, the meager 0.1 per cent point rise over four years is minuscule with the sector's requirements. The National Education Policy (NEP) emphasises the allocation of at least 6 per cent of GDP to education, an aspirational goal for almost a decade. For India to aspire to be a global leader and a major economic power, investing substantially in education is non-negotiable.

Comparatively, nations like China and Australia are making significant investments in education. To truly become a 'Vishwa Guru' and achieve economic prowess, India must prioritise and substantially invest in its education system. The forthcoming budget, post-elections, is an opportune moment for the government to reflect this commitment by aligning with the goals outlined in the NEP.

In conclusion, while the interim budget may not usher in revolutionary changes, it serves as a critical juncture to assess the utilisation of allocated funds and the government's commitment to education. The figures presented in the budget will determine whether the rhetoric of increased allocations translates into tangible improvements in the education sector. As we await the unfolding of events post the General Elections, the focus must remain on bolstering education as a cornerstone for India's development.

About the author

The author of the article is Prof (Dr) YSR Murthy, Vice Chancellor, RV University, Bengaluru

Dr YSR Murthy

Guest Author The author is Founding Vice Chancellor, RV University, Bengaluru