Especially, the education sector was expecting a huge boost in terms of increase in education budget from 4% to 6% of the GDP.

An outlay of Rs 85,010 crore was made by Union Finance Minister Arun Jaitley for the education sector for the next fiscal year. While Rs 35,010 crore have been allocated for higher education, an amount of Rs 50,000 crore has been earmarked for school education. This has increased from Rs 79,685.95 crore in 2017.

The government has proposed a research fellowship scheme under which 1,000 best B.Tech students would be identified and given “a handsome fellowship” and facilities to do PhD in IITs and the Indian Institute of Science, Bangalore, in the hope that they would voluntarily commit a few hours every week to teach in higher educational institutions. This initiative would probably attract top ranked students from the premier central government institutions for pursuing PhD and eventually become faculty in Indian higher education. It’s a welcome step towards strengthening Indian Higher Education teaching & research. If implemented well, this may help India in improving its performance in global university rankings.

The decision has been welcomed by the academic community overall, as such an initiative could help in fostering a culture of research and innovation in the field of technology. For decades India’s academic orientation has been skewed towards theory, with very little impetus on research and testing.The move comes in a time when India produces only 12,000 PhDs in engineering annually, unlike China, Britain and the US..

The government has also proposed setting up of two new full-fledged schools of planning and architecture and about 18 schools of planning and architecture to be set up under the Indian Institutes of Technology (IITs) and National Institutes of Technology (NITs) as autonomous schools. Looking at the rapid automation taking place in infrastructure and construction sector, this announcement looks untimely. However, this step could be aimed to cope with the demand for architectects and urban planning professionals for upcoming smart cities.

To bridge the gap between doctor-patient ratio in the country, the finance minister proposed setting up of 24 new government medical colleges by upgrading existing district hospitals in the country. “The government aims to set up at least one medical college for three Parliamentary constituencies. Looking at the governance issues in the medical council of India and deteriorating conditions of government medical colleges and hospitals, government would be required to pay serious attention while setting up new medical colleges.

In a major reform move for the higher education sector, the government has also announced a new model for funding infrastructure in the centrally-funded higher educational institutions, calling on IITs, NITs and IIMs to pitch in with 25% of total funds needed.

The budget 2018 has declared that there will be no further grant-in-aid for new infrastructure across Centrally Funded Technical Institutes including the IITs, NITs and IIMs. It is estimated that Rs 1 lakh crore will be needed across institutes until 2021-22 for creation of new infrastructure.

The move could be made to bring in greater accountability and responsibility in government funded educational institutes, to shift funding mechanism to a project based one rather than a dole out mechanism. The government also believes that besides pushing institutes to mobilise their own resources, the move will also allow institutes to seek more funds and money than they currently get allocated, provided their project proposal is credible enough.

Under the new funding regime introduced today, each institute will now have to seek funds on the basis of projects proposals and seek loans from the Higher Education Financing Agency (HEFA) to fund the same.

This change in funding mechanism may increase competitive environment among premier institutions however, for a country like India, the government funding in Higher Education Institutions should be based on more egalitarian view and mediocre institutions should not suffer due to most of the government fund allocation to top institutions.

In case of Central Universities which have constraints in raising student fee, they will have to only pay 10% of the principal amount.

Stopping short of fully deregulating fee in these institutes, keeping student interest in mind, the Modi government will allow educational institutes considerable freedom to mobilise resources on their own.

While these initiatives are spearheaded towards creating an infrastructure to encourage skill development and ensure that our youth has relevant expertise in their area of specialization. Broadly, education sector had the following expectations from this budget.

1. Increasing education sector budgetary allocation from 4% to 6% of GDP
2. Removal / reduction in GST for Higher Education
3. Special package to revive engineering education / closing institutes
4. Announcement of National Employment Policy (NEP) – a comprehensive road map for creation of quality jobs and employment
5. Revision on monetary limit for income tax exemption under children education

While this year’s union budget almost managed to pacify all strata’s, but the people were still left wanting for more. For example even after much debate and discussion, topics like GST in Higher education or tax exemption under children education were not touched..

Therefore even with a slew of such initiatives, one could only come to a conclusion basis what gets translated into ground reality and in what amount of stipulated time.

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Hon’ble Finance Minister Arun Jaitley presented budget on the backdrop of demonetisation and upcoming elections in 5 key stats. However, by and large the budget has neither presented any surprises nor any shock to the education sector.

Here is a link to the original article on The Indian Express

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With the growing aspiration of Indian premier institutions to compete on the global stage and basic demand for creating access to higher education for all, the sector was expecting transformational reforms. However as far as meeting education sector’s expectations is concerned, the budget is miles away from being considered as #SuperBudget. Rather, it seems, focus on education is missing in this budget.

To tackle mammoth challenges Indian education is facing, strategic long-term approach to rejuvenate the sector was expected by most of the academic leaders. As far as education sector announcements are concerned, the budget doesn’t look anyway different from earlier government budgets. It remains populist with symbolic announcements of new premier institutions to please a specific section of society and many promises for the larger population.

Being the first full budget of the government with the absolute majority, this budget would have provided at least the direction for some of the eagerly awaited education sector related bills.

Looking at the pressing need of improving research and innovation output of the country, announcement on countrywide special program for motivating academic research would have been considered timely. Such announcement would have been face saver against the humiliation government is facing on the issue of delay in research fellowship arrear payment and nationwide agitation by Ph.D. research scholars.

Here, I am presenting the detailed analysis on each point of the Hon’ble Minister’s budgetary speech.

Hon’ble Minister’s Budget speech:

I have allocated ` 68,968 crore to the Education sector including mid-day meals

Analysis:

This announcement is the most significant as budgetary allocation indicates government’s focus on education viz a viz other sectors.

In this budget, Rs 68,968 crore is allocated for the education sector from total outlay of Rs 17,77,477 crore, which is nearly 3.8 percent.

While the school education sector has got an outlay of Rs 42,219.50 crores for 2015-16, the higher education sector has got Rs 26,855 crore. In all, school education and higher education sectors have got Rs 68,968 crore. The revised estimate for 2014-15 was Rs 70,505 crore. This means the government announced 2% cut in the outlay for the education sector in this Union Budget. The cut is, however, about 16.54 percent if compared with the actual outlay the 2014-15 fiscal.

“India is one of the youngest nations in the world with more than 54% of the total population below 25 years of age.” The line quoted by Honorable Finance Minister during this budgetary speech gives perspective to 3.8% budgetary allocation to the education sector. Looking at this statistics if we really want to ripe benefits of the demographic divide, the government would have announced significant hike in education spending. Government’s decision of budget cut in education is against common sense.

Hon’ble Minister’s Budget speech:

Educating and skilling our youth to enable them to get Employment is the altar before which we must all bow. To ensure that there is a senior secondary School within 5 km reach of each child, we need to upgrade over 80,000 secondary Schools and add or upgrade 75,000 junior/middle, to the senior secondary level. We also have to ensure that Education improves in terms of quality and learning outcomes.

Analysis:

The intention of the Finance Minister to improve the quality of primary and secondary education is definitely a beacon of hope. However, due to the absence of a working blueprint to achieve these results, the words seem to be hollow and a little unrealistic, considering the large number of schools being impacted (80000 secondary and 75000 junior/middle-level schools).

Hon’ble Minister’s Budget speech:

An integrated Education and livelihood scheme called ‘Nai Manzil’ will be launched this year to enable Minority Youth who do not have a formal School-leaving certificate to obtain one and find better Employment. Further, to showcase civilization and culture of the Parsis, the Government will support, in 2015-16, an exhibition, ‘The Everlasting Flame’. The allocation for the Ministry of Minority Affairs is being protected. The BE for the year 2015-16 is Rs 3,738 crore.

Analysis:

With the integration of the Education, Skills development and Livelihood schemes, the Government definitely seems to be sensitive about improving the condition of the uneducated, unemployed population. The Government’s step towards integrating educational services of religious institutes and other academic bodies is a good move.

Hon’ble Minister’s Budget speech:

I also intend to establish, in NITI, the Atal Innovation Mission (AIM). AIM will be an Innovation Promotion Platform involving academics, entrepreneurs, and Researchers and draw upon national and international experiences to foster a culture of innovation, R&D and scientific Research in India. The platform will also promote a network of world-class innovation hubs and Grand Challenges for India. Initially, a sum of ` 150 crore will be earmarked for this purpose.

Analysis:

As mentioned in the beginning, the announcement of a large-scale program for the promotion of Research and Innovation culture among academic institutions remains long awaited. This new fund allocation can be looked at as a first step towards larger program. However, looking at the kind of boost India needs in this area, 150 crore allocation is meager.

The UAE government recently declared 2015 as the “Year of Innovation” and announced a new National Innovation Strategy with the aim of becoming one among the most innovative nations in the world within a 7-year period. Our country is still in the optimistic state and I feel, this was the right time for our government to announce bold vision about our vision and support it with long-term budgetary allocation.

Hon’ble Minister’s Budget speech:

India is one of the youngest nations in the world with more than 54% of the total population below 25 years of age. Our young people have to be both educated and employable for the Jobs of the 21st Century. The Prime Minister has explained how Skill India needs to be closely coordinated with Make in India. Yet today less than 5% of our potential workforce gets formal skill training to be employable and stay employable.

We will soon be launching a National Skills Mission through the Skill Development and Entrepreneurship Ministry. The Mission will consolidate skill initiatives spread across several Ministries and allow us to standardize procedures and outcomes across our 31 Sector Skill Councils.

With rural population still forming close to 70% of India’s population, enhancing the employability of rural youth is the key to unlocking India’s demographic dividend. With this in mind, we had launched the Deen Dayal Upadhyay Gramin Kaushal Yojana. ` 1,500 crore has been set apart for this scheme. Disbursement will be through a digital voucher directly into qualified student’s bank account.

Analysis:

Here I have clubbed 3 skill development related sections of the speech.

Broadly it gives an impression of government’s increasing inclination towards skills development than formal education. If India aspires to be exporter of skilled workforce to the whole world, focus on skill development is inevitable, however it is also important to remember that both should remain supplementary to each other and vocational training can not be looked at as an alternative to formal education.

Hon’ble Minister’s Budget speech:

With a view to enable all poor and middle class students to pursue Higher Education of their choice without any constraint of funds, I propose to set up a fully IT based Student Financial Aid Authority to administer and monitor Scholarship as well Educational Loan Schemes, through the Pradhan Mantri Vidya Lakshmi Karyakram. We will ensure that no student misses out on Higher Education for lack of funds.

Analysis:

If you would like to evaluate this budget with respect to the government’s execution capability this section is the best example. This announcement should be looked at in the context of last budgetary announcement of “Government also proposes to ease and simplify norms to facilitate education loans for higher studies”. When we put both the in sequence, it gives confidence that government has a well-defined plan in this area.

Hon’ble Minister’s Budget speech:

Hon’ble Members will remember that in the Budget Speech of July, I had indicated my intention to provide one major Central Institute in each State. In the fiscal year 2015-16, I propose to set up All India Institutes of Medical Sciences in J&K, Punjab, Tamil Nadu, Himachal Pradesh and Assam. Keeping in view the need to augment Medical Sciences in Bihar, I propose to set up another AIIMS like institution in these States. I propose to set up an IIT in Karnataka, and upgrade Indian School of Mines, Dhanbad into a full-fledged IIT. I also propose to set up a Post Graduate Institute of Horticulture Research and Education in Amritsar. IIMs will be setup in J&K and Andhra Pradesh. In Kerala, I propose to upgrade the existing National Institute of Speech and Hearing to a University of Disability Studies and Rehabilitation. I also propose three new National Institutes of Pharmaceutical Education and Research: in Maharashtra, Rajasthan, and Chattisgarh; and an Institutes of Science and Education Research in Nagaland and Odisha. I also propose to set up a Centre for Film Production, Animation and Gaming in Arunachal Pradesh, for the North-Eastern States; and Apprenticeship Training Institute for Women in Haryana and Uttrakhand.

Analysis:

To me, this is the most disappointing announcement of this budget. There is no doubt that we will have to build additional capacity to achieve 30% Higher Education GER target, however, it is important to evaluate financial viability of announcing new institutions.

The eight IITs, announced during 2008-12, are operating out of temporary campuses. Out of these 8, 6 deferred their plan to move to new campus due to cut in budget allocation. Government announced 5 new IITs during last budget however; it seems difficult for them to start from coming academic session. It is difficult to understand how government will practically starts one more IIT and what purpose will the name change of ISM, Dhanbad to IIT, Dhanbad serve. Situation of new IIMs is no better than IITs. They are struggling without physical and intellectual resources required for premier institution.

Announcement of independent university for disability studies, film production Centre, and apprentice training Centre for female are welcome moves.

Conclusion:

To me, the Union Budget does not seem too promising for education sector. But with the country still being in an optimistic state, hope and success riding high on this year’s budget, here’s to see how much of the reforms are carried out over the trending of the year.

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As the Indian higher education is at a critical stage with tremendous pressure on increasing GER and quality enhancement of Institutions, the sector was expecting structural reforms. However unfortunately; the budget fell short on those expectations as the new government also continued focusing on infrastructure creation than structural reforms.

Looking at the challenges Indian higher education is facing, a new strategic approach needs to be taken to overhaul the sector. The budget only talked about doing more of the same that the last government was doing. It also has been populist in nature as it attempts to please a few sections of society, specifically based on geography.

Provided with the huge mandate to this government, this budget would have clarified government’s stand on FDI in Higher Education (Foreign Education Providers’ Bill), which is eagerly awaited by, not just, the promoters of private education institutions but also by some leading foreign institutions as well.

Looking at the increasing importance and urgency for preparing Indian institutions to compete on global rankings, this would have been the most appropriate time for the government to announce an initiative on the lines of Chinese 985 (or Korean Brain 21) programs. Such initiative would have been able to rejuvenate Indian higher education system.

Here, I have presented detailed analysis on each points of the Hon’ble Minister’s budgetary speech.

Hon’ble Minister’s Budget speech:

“The country needs a large number of Centers of higher learning which are world class. I propose to set up Jai Prakash Narayan National Centre for Excellence in Humanities in Madhya Pradesh. I also intend to setup five more IITs in the Jammu, Chattisgarh, Goa, Andhra Pradesh and Kerala. Five IIMs would be setup in the States of Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra. I propose to set aside a sum of Rs 500 crore for this.”

Analysis:

This announcement is the most significant as it clarifies the government’s approach towards higher education. I feel, the government has gone completely wrong. To improve the GER the country certainly needs additional capacity but it is more important to better quality of existing education institution, urgently. When most of the newly formed IITs and IIMs are still operating from borrowed campuses and are struggling from lack of quality faculties, this budget should have focused on strengthening them rather than starting new institutions.

If the government felt the need to increase some capacity, a better initiative should have been to create a new brand in Higher Education rather than trying to leverage existing brands like IITs and IIMs.

In today’s context establishing even a single world class institution requires an investment of Rs 500 crore and it doesn’t make any sense to allocate similar budget to start 10 new institutions. The better option would have been to allocate funds, to the best management / engineering institution in these states, with the specific objective of putting them on the road map to become IITs and IIMs. Opening 5 new IIMs and IITs each in the states where it is not present currently, is certainly politically motivated and has no merit from educational stand-point.

Hon’ble Minister’s Budget speech:

“Government also proposes to ease and simplify norms to facilitate education loans for higher studies. “

Analysis:

This is right step in the right direction to improve GER. Looking at the budgetary deficits and increased capacity in the private institutions, it was almost impossible for the hon’ble minister to subsidize or control fees and push for GER increase.

However, the government must not consider such simplification at the cost of increase in NPAs. It needs to be monitored carefully as NPAs in education loans are already hovering at more than 5%.

Hon’ble Minister’s Budget speech:

“Rs 2,200 crores for Rashtriya Uchchatar Shiksha Abhiyan.”

Analysis:

It is in the continuation of existing centrally sponsored scheme. With larger allocation, it is more important to increase effectiveness and relentless focus on quality, equity and access.

Hon’ble Minister’s Budget speech:

“Film & Television Institute, Pune and Satyajit Ray Film & Television Institute, Kolkata are proposed to be accorded status of Institutes of national importance and a “National Centre for Excellence in Animation, Gaming and Special Effects will be set up.”

Analysis:

This is a real area of new initiatives in this budget. It is encouraging for the private institutions to know that government has acknowledged the importance of higher education institutions in specialized and emerging disciplines.

Hon’ble Minister’s Budget speech:

“Rs 200 crore provided to open Agriculture Universities in Andhra Pradesh and Rajasthan & Horticulture Universities in Telangana & Haryana. “

Analysis:

Ii is difficult to understand that with more than 50 existing agricultural and horticulture universities, most of them operating at lower than expected capacity utilization, the government has decided to establish 4 more such universities. As most of these universities are operating under tight budgetary constraints and produce lower quality research, this money should have been better utilized in upgrading the quality of education and research in the existing agricultural and horticultural universities. Agriculture & horticulture universities require large land bank and unfortunately, most of the budgetary allocation will go in land and basic infrastructure.

To conclude, it is important for the government and specifically, ministry of HRD to make a fine balance between new capacity generation and building globally ranked institutions. This budget creates an impression of leaning towards capacity building.

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