Education Budget 2024 Updates: UGC, IIMs face budget cut; here’s what Sitharaman presented

The Union Budget 2024 is a progressive budget in sync with the vision of Viksit Bharat by 2047 in harmony with nature, modern infrastructure and opportunities for all. The budget aims to empower the youth by providing training to 1.4 crore youth, under Skill India Mission, and fostering entrepreneurial aspirations of the youth by sanctioning 43 crore loans under PM Mudra Yojana.

The Budget focusses on the “Golden Era for tech-savvy youth” since a corpus of Rs 1 lakh crore will be established with a 50-year interest-free loan provided to them, with low or zero interest rates. With a strong focus on science, technology, start-ups and innovation, the budget aims to propel the scientific development of the country and fulfill the goal of India being the third largest economy by 2047.

- Dr. Balvinder Shukla, Vice Chancellor, Amity University Uttar Pradesh

1. Education Ministry’s overall budget allocation this year increased by 6.8 per cent from Rs 1,20,627.87 crore as opposed to Rs 1,12,899.47 crore in 2023-24.
2. UGC allocation saw a cut of little over 50 per cent with just Rs 2,500 crore allocation for the financial year 2024-25 from Rs 5,360 crore in 2023-24 budget estimate.
3. Central universities grants saw an increase of over Rs 4,000 crore with Rs 15,928 crore allocated for FY 2024-25.
4. Under the ‘World Class Institutions’ for Institutions of Eminence (IoE), allocation has increased to Rs 1,800 crore from Rs 1,500 crore in 2023-24.
5. For research and innovation, allocation has been hiked to Rs 355 crore from Rs 210.61 crore.
6. For Samagra Shiksha Abhiyan allocation increased marginally by Rs 46.5 crore, from Rs 37,453.47 crore to Rs 37,500 crore in 2024-25.
7. The PM POSHAN scheme saw an increase of over Rs 800 crore in allocation from Rs 11,600 in 2023-24 to Rs 12,467.39 crore in 2024-25.
8. Rs 6,050 crore allocated for PM Schools for Rising India (PM SHRI).

The budget for Indian Institutes of Technology (IITs) has also seen a marginal dip from the RE last year. The grant to the top technology institutions has dropped from RE of Rs 10,384.21 crore to Rs 10324.50. However, the support grant for Central Universities has increased by over 28 per cent.

The budget for Central Universities has been increased to Rs 15472 crore from RE of Rs 12000.08 crore.

The funding for UGC has been brought down to Rs 2500 crore from the previous year's RE of Rs 6409 crore, a 60.99 per cent drop. Meanwhile, the allocation for Indian Institutes of Management (IIMs) has been slashed too for the second consecutive year. The budget for school education has been increased by over Rs 500 crore but the grant for higher education has been reduced by over Rs 9600 crore from the previous fiscal year's Revised Estimate (RE). -- PTI

Yes, allocation in Kendriya Vidyalaya Sangathan had increased by Rs. 713.98 crore (9.33 per cent) (from Rs.7650.00 crore in budget estimate 2022-23 to Rs. 8363.98 crore in budget estimate 2023-24) and in Navodaya Vidyalaya Samiti by 1371.50 cr (33.32 per cent) (from Rs.4115.00cr in budget estimate 2022-23 to Rs. 5486.50 cr in budget estimat 2023-24).

The finance minister reported a 28 per cent increase in female enrollment in higher education. She also stated that in STEM courses, women now make up an impressive 43 per cent of the total enrollment, marking one of the highest figures globally.

"The Skill India Mission has trained 1.4 crore youth, upskilled and reskilled 54 lakh youth and established 3000 new ITIs. A large number of new institutions of higher learning, namely 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS and 390 universities have been set up," Nirmala Sitharaman said.

Experts see hope for the future of skilled youth through this Interim Budget. "The focus on skilling India's youth through initiatives like NEP and Skill India Mission, and the emphasis on both traditional and non-traditional skilling avenues is a laudable step towards India's aspirations of becoming a ‘Viksit Bharat’ by 2047. Public-private partnerships and leveraging industry expertise will be crucial in bridging the skill gap and empowering the ‘Amrit Peedhi’ for a developed India by 2047," said  Md. Sajid Khan, Director-India, ACCA (Association of Chartered Certified Accountants).

"Our prosperity depends on adequately equipping and empowering the youth. The National Education Policy 2020 is ushering in transformational reforms. PM ScHools for Rising India (PM SHRI) are delivering quality teaching and nurturing holistic and well-rounded individuals," the finance minister said.

The female enrollment in higher education has gone up by 28 per cent in 10 years in STEM courses. These measures are getting reflected in the increasing participation of women in workforce, the Finance Minister stated.

FM's comprehensive strategy focuses on education and skill enhancement, with Skill India achieving remarkable milestones. Increased women's participation in STEM fields contributes to India's goal of becoming a talent superpower. We are entering an era where inclusivity and educational empowerment support digital, health, and green developments. Wider opportunities, innovations, and enhanced GOI support in 2024 empower our tech-savvy youth. 

– Mayank Kumar, co-founder and MD,
upGrad

"Setting up of new medical colleges will reinforce India’s objective of talent development in the healthcare space. Providing an impetus to develop research ecosystem in the country, a new corpus of 100,000 cr with 50-year interest free will be established. This will help private sector participation, including educational institutions, to do innovative research with focus on sunrise domain or sectors."

-- Sahil Gupta, Partner, Deloitte India

Prof. Abhradeep Maiti, Chairperson – Admissions, Economics, IIM Kashipur said, “Declaring that the Skill India Mission had been successfully adopted, the interim budget 2024 guaranteed that the government would place equal emphasis on governance, development, and performance. The mission has successfully trained 1.4 crore youth, upskilled and re-skilled 54 lakh youth, established 3000 new ITIs, 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS, and 390 universities. With the union government placing a strong emphasis on funding the National Research Fund and establishing the Higher Education Commission to improve ed-tech resources like digital infrastructure, digital repositories, and hybrid models of in-person and online learning to meet the growing demand, the higher education sector has experienced robust growth.”

As per Neeraj Kumar, founder & CEO of Peakmind, while unveiling the Union Budget 2024, the Finance Minister expanded on the progress we have made as a nation in the field of education and how the National Education Policy 2020 is driving substantial reforms in this sector. The progress is quite laudable; however, no mention has been made of taking constructive measures to tackle the growing concern of youth’s mental health and suicide issues. The sooner this is brought into focus the better it would be for the leaders of tomorrow, in whose hands our future rests. While the Skill India Mission has successfully trained 1.4 crore young individuals, providing upskilling and re-skilling opportunities to 54 lakh youths, and establishing 3000 new Industrial Training Institutes (ITIs), very little has been done to address the growing academic distress that students need to deal with in their developmental years.

In other news, the Union govt plans to introduce the Public Examination (Prevention of Unfair Means) Bill, 2024, during the ongoing session of Parliament. The Bill aims to curb cases related to paper leaks and organised cheating in public examinations, including the UPSC, SSC, and the Railways; and entrance examinations such as NEET, JEE, and CUET.

According to sources, the Union Cabinet has approved the draft of the Bill, and it is likely to be tabled in Parliament on Friday or on Monday. Read more

The Skill India Mission’s initiative to train 1.4 crore individuals, along with the upskilling and re-skilling of 54 lakh youth, coupled with the establishment of 3,000 new Industrial Training Institutes is a vital step towards bolstering the Make in India programs. This comprehensive approach is essential in enhancing the manufacturing sector’s contribution to the GDP from 17% to 25% by 2047, thereby creating numerous job opportunities.

The National Education Policy 2020 is ushering transformational reforms. PM Shri is delivering quality teaching, says Nirmala Sitharaman.

#Budget2024 #ViksitBharatBudget

Empowering Amrit Peedhi, the youth

The National Education Policy 2020 is ushering transformational reforms

PM Shri is delivering quality teaching

Skill India Mission has trained 1.4 crore youth, upskilled and reskillled 54 lakh youth and…

— PIB India (@PIB_India) February 1, 2024

"The Skill India Mission has trained 1.4 crore youth, upskilled and re-skilled 54 lakh youth, and established 3000 new ITIs. A large number of institutional higher learning, namely 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS and 390 Universities have been set up," Finance Minister Nirmala Sitharaman said.

While learning the Indian languages/ mother tongue is one of the debates behind the idea of having a school curriculum in Indian languages, another reason is to promote the languages. However, experts and parents believe that while this sounds good on paper, we cannot negate the importance of the global language, English, which often acts as the window to the world.

“Students from Hindi-medium schools may face challenges in competitive exams, which are predominantly conducted in English. The language barrier can potentially put them at a disadvantage compared to their English-medium counterparts,” says Devyani Jaipuria, Pro-Vice Chairperson, DPS International.

Read full report here

PM Shri Schools which were announced in 2022’s budget speech, but were not allocated any money, have been given Rs 4,000 crore this year. 

As per Budget 2023, under PM Schools for Rising India or PM Shri, 14500 schools are expected to be upgraded to showcase components of the new National Education Policy 2020.

CBSE is reported to have proposed significant changes to the academic framework for secondary and higher secondary education, including a shift from studying two languages to three in Class 10, with the requirement that at least two must be native Indian languages. Furthermore, students in Class 10 may now need to pass in 10 subjects, as opposed to the current requirement of five.

Similarly, for Class 12, the proposed changes involve students studying two languages instead of one, with the condition that at least one must be a native Indian language. Overall, they would have to clear examinations in six subjects instead of five to graduate from high school.

Read full report here

— 157 new nursing colleges to be established 

— 38,800 teachers, support staff recruitment for 740 Eklavya Model Residential Schools.

— Three new centres of excellence for AI in top educational institutions.

— Ministry of Education allocated Rs 1.12 lakh crore budget

"Some glimpses from the first day of the Budget Session at Parliament House today," the Vice President of India posted on his official X account.

Some glimpses from the first day of the Budget Session at Parliament House today... @rashtrapatibhvn #BudgetSession pic.twitter.com/knIfG9ftLu

— Vice President of India (@VPIndia) January 31, 2024

More medical colleges to be set up soon, the Finance Minister says. "Our government plans to set up more medical colleges by utilizing the existing hospital infrastructure," Sitharaman said.

For this, a committee will be set up to examine issues and make recommendations.

The female enrollment in higher education has gone up by 28 per cent in 10 years in STEM courses. These measures are getting reflected in the increasing participation of women in workforce, the Finance Minister stated.

Experts believe the GST slab on educational products and services must be reduced to ease the financial burden on parents and promote affordability. Maheshwari focused on the need for collaboration between the public and private sectors to drive a change in the sector at scale.

Saurabh Mittal, CFO of S Chand and Company Limited reiterated that all inputs from paper and printing to content development and royalty have a GST rate of 5-18 per cent, while the book publishing industry has a zero GST. He expects a reduction of GST rates on services including royalty or a mechanism for refund.

“In the book publishing industry, the product has a Zero GST rate, however all inputs from paper, printing, consumables, content development, professional services, and even Royalty (RCM) have a GST Rate of 5-18%, which has had a severe impact on margins for the trade which has had 3 bad years during Covid-19. The Industry hopes for a reduction of GST rates on services like royalty, or a mechanism for refund,” he said.

Read more here

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The Finance Minister has calimed that 43 per cent enrolled students in STEM are women.

'The National Education Policy 2020 is ushering the transformational reforms in schools for rising India. It is delivering quality teaching and nurturing, holistic and well rounded individuals scaling their mission to one point,' Sitharaman said in the Parliament.

The present government has set up 7 new IITs, 16 IIITs, 7 IIMs, 15 AIIMS and 390 new universities have been set up, Nirmala Sitharaman stated.

In 2023, the University Grants Commission was allocated Rs 5,350 crore versus budget allocation of Rs 4,900 crore.

Strategic funding should support AI-driven educational models, digital infrastructure, and AI literacy, Vineet Nayar, former CEO of HCL Technologies and Founder and chairman of Sampark Foundation said. Such initiatives, he added, must extend beyond conventional classrooms, ensuring equitable access across socio-economic strata.

“Investments in AI research, especially in educational applications, are vital. Collaboration between educational institutions and industry can accelerate AI solutions for educational needs. Teacher training in AI, developing AI-enabled learning tools, and democratising technology access are essential for an AI-ready generation,” Nayar said adding that the Union Budget 2024 should not only increase allocation but strategically channel resources for AI embedding in education.

Read more here

Listen to Nirmala Sitharaman's speech here ??

— 157 new nursing colleges to be established 

— 38,800 teachers, support staff recruitment for 740 Eklavya Model Residential Schools.

— Three new centres of excellence for AI in top educational institutions.

— Ministry of Education allocated Rs 1.12 lakh crore budget

"Adequate funding in key areas will undoubtedly catalyze research, innovation, entrepreneurship and infrastructure development, fostering a brighter future for our academic community, industry and the nation at large. We look forward to a knowledge-based Viksit Bharat with our students," Prof. Rajeev Ahuja, Officiating Director, IIT Guwahati said.

The Union Cabinet headed by Prime Minister Narendra Modi has approved the pre-election Budget, as reported by PTI

'Union Minister of Finance and Corporate Affairs Smt Nirmala Sitharaman along with Ministers of State Dr Bhagwat Kishanrao Karad and Shri Pankaj Chaudhary and senior officials of the Ministry of Finance called on President Droupadi Murmu at Rashtrapati Bhavan before presenting the Union Budget. President Murmu extended her best wishes to the Union Finance Minister,' the President's official X handle stated.

Union Minister of Finance and Corporate Affairs Smt Nirmala Sitharaman along with Ministers of State Dr Bhagwat Kishanrao Karad and Shri Pankaj Chaudhary and senior officials of the Ministry of Finance called on President Droupadi Murmu at Rashtrapati Bhavan before presenting the… pic.twitter.com/miwSv8r4dE

— President of India (@rashtrapatibhvn) February 1, 2024

Prof Thillai Rajan A, IIT Madras is looking forward to a slew of booster measures in the 2024 budget that bring back the winds to the sails of the start-up ecosystem.

Reiterating that there have been very few comparable initiatives in independent India that have galvanised so many departments and ministries of the Indian government, the IIT Madras professor said: “More than ?20,00,000 crore has been invested in start-ups in the country. However, since the high peak of 2021, the number of start-ups created has been gradually declining. As somebody who is keenly following the contribution of the start-ups, I look forward to a slew of booster measures in this Budget that brings back the winds to the sails of the Start-up ecosystem.”

Read more budget expectations here

As the Finance Minister and her team complete all formalities associated with tabling the budget in the Parliament today, copies of the Union Budget arrived at Parliament this morning.

#WATCH | Interim Budget copies arrive in Parliament, Finance Minister Nirmala Sitharaman to present her sixth straight budget today pic.twitter.com/ZFKdzcx7kt

— ANI (@ANI) February 1, 2024

The Union Minister of Finance and Corporate Affairs Nirmala Sitharaman met President Droupadi Murmu at Rashtrapati Bhavan before presenting the Union Budget. Ministers of State Dr Bhagwat Kishanrao Karad and Pankaj Chaudhary and senior officials of the Ministry of Finance were also present.

Yes, allocation in Kendriya Vidyalaya Sangathan had increased by Rs. 713.98 crore (9.33 per cent) (from Rs.7650.00 crore in budget estimate 2022-23 to Rs. 8363.98 crore in budget estimate 2023-24) and in Navodaya Vidyalaya Samiti by 1371.50 cr (33.32 per cent) (from Rs.4115.00cr in budget estimate 2022-23 to Rs. 5486.50 cr in budget estimat 2023-24).

Budget allocation for financial year 2023-24 for the World Bank aided Scheme of STARS had increased by Rs. 250.00 crore (45.45 per cent) from Rs. 550.00 cr in budget estimate 2022-23 to Rs. 800.00 crore in budget estimate 2023-24.

As more and more Indian students head abroad to pursue higher education, study abroad experts are urging the government to  consider a reduction in interest rates on education loans and actively promote an increase in the education loan limit for public sector banks.

"This would create an environment where talented and deserving students can better pursue their aspirations of studying abroad. With India securing its position as one of the fastest-growing economies, a strong foundation for future growth is laid, offering promising students the opportunity to dream big and pursue international education. India stands as a huge contributor to the global student population studying abroad across destinations; hence, it would be beneficial if the government could consider reducing interest rates on education loans to support this significant demographic further," Piyush Kumar, Regional Director- South Asia and Mauritius, IDP Education told indianexpress.com

As per the recent Annual Status of Education Report (ASER), more than half of 14- to 18-year-old children in rural India cannot solve a simple three-digit division problem that’s usually taught in Class 3-4 and struggle with everyday skills, including determining time and doing basic calculations.

Keeping this in mind, the experts believe that in this Interim Budget, there is a need for enhancement of digital infrastructure to increase accessibility and facilitate the seamless implementation of learning solutions for children in the remotest corners of the country who seek access to high-quality online content.

Read more expectations here

Yesterday, the outlay for PM Poshan was increased by 13.3 per cent, taking the allocation to Rs 11,600 crore from Rs 10,233 crore. In addition to this, the government had also announced that a National Digital Library will be set up for “children and adolescents” to provide a supply of good quality books at a time when students are trying to cope with the learning losses suffered during the pandemic.

Last year, Finance Minister Nirmala Sitharaman announced a national digital library for children and adolescents. A similar initiative was also announced in 2018 by the then Education Minister Prakash Javadekar. Since then, a national digital library is being run by IIT Kharagpur. It’s not clear how the finance minister’s announcement is different from what’s already in place.

'We need to allocate funds towards establishing AR/VR labs and Robotics facilities in schools, enhancing the learning experience through technology. The budget should actively support digital education initiatives by offering tax incentives and forming partnerships with tech companies to improve online learning platforms. To foster a future-ready workforce, there is a need to integrate subjects like analytics into the school curriculum, ensuring that students are equipped with essential skills early on, aligning with the evolving demands of the digital age. Remote learning has emerged as a powerful tool, democratizing education by breaking down geographical barriers and providing access to quality learning experiences for students, irrespective of their location,' says Devyani Jaipuria, who is the Pro-Vice Chairperson DPS International, DPS Gurgaon, DPS Jaipur, Chairperson - Dharav High School, Jaipur.

Read more pre-budget expectations here

Finance Minister Nirmala Sitharaman with her team posed for photographs at the Finance Ministry before presenting the Budget in New Delhi on Thursday. 

(Express photo by Tashi Tobgyal)

Last year, the Education Ministry’s budget allocation increased by a marginal 8 per cent from Rs 1.12 lakh crore as opposed to 1.04 lakh crore in 2022-23.

Saying that India has the potential to emerge as a global superpower in education, Siddharth Banerjee, CEO, UNIVO Education said: "Aided by the framework of the NEP 2020 and the recent positive developments for the online higher education industry, we are well positioned to accelerate our GER from current 27% levels."

Given the importance of quality online education, the government will surely consider relevant Tax exemptions and lower GST rates to bridge the skill gap, along with encouraging reduced and subsidized interest rates on educational loans for aspiring students across the nation, he added.

"Online Higher Education in India goes across socio-economic strata and across Metro/ Tier 2-3-4 cities and we look forward to continued support from the government to continue aiding the nation-building efforts by providing quality higher education and helping improve lives and careers," he said.

An interim budget, set to be presented tomorrow, February 1, 2024, will be a temporary financial plan. The interim budget is announced before a new government is set to come in after general elections.

Aligned with the holistic goals of Viksit Bharat@2047, encompassing economic growth, social progress, environmental sustainability, and good governance, Dhruv Galgotia, CEO, Galgotias University, underscores the crucial need for a budget that integrates AI and technology into education.

This integration, he adds, stands as a pivotal step towards aligning the educational system with the future demands envisioned by the Prime Minister's initiative. Looking forward to 2024, Galgotias University sets its sights on pioneering pedagogical approaches tailored to the 21st-century landscape.

Actively investing in advanced teaching methodologies, fostering interdisciplinary collaborations, and cultivating an environment that champions exploration and creativity, the institution's forward-looking approach goes beyond conventional education, aiming to empower students with the skills, mindset, and resilience necessary for success in our ever-evolving global landscape.

Mark your calendars for the Interim Union Budget 2024!

Union Finance Minister @nsitharaman to present the #InterimBudget on February 1, 2024

??Watch here: https://t.co/F8aOXX6Qfb

— PIB India (@PIB_India) January 30, 2024

•  A reduction or waiver in Tax Collected at Source (TCS) while remitting money for overseas education and ancillary activities will be a welcome sign. 
• Lowering or waiving off TCS while remitting funds overseas for education will ease the burden on families and encourage more students to explore educational opportunities at a destination of their choice.
• Exploring student concessions on air travel is imperative to make global education economically viable for a broader demographic of students, fostering cultural exchange and elevating India's representation on the global academic stage.

Saurabh Arora, CEO, University Living

The government should recognize and harness the potential of Indian students in STEM abroad by implementing measures to make international education more accessible and affordable, Career Mosaic spokesperson Manisha Zaveri, Joint Managing Director said.

This could involve targeted scholarship schemes for tier 2 and tier 3 city students, tax benefits for families supporting overseas education and streamlined visa processes. A supportive budget addressing these aspects will not only enable students to pursue their international education dreams but also contribute significantly to India's long-term economic and intellectual growth, she added.

Sachin Jain, Country Manager, India and South Asia ETS urges policymakers to allocate resources that accelerate global mobility of India’s young talent. This, Jain added, includes the inclusion of language skills and internationally recognized work skill certifications in Indian classrooms.

Skills development enterprises, both public and private, must leverage globally benchmarked and recognised skills framework and certifications as these are valued by employers internationally, he added.

Policy-makers should also look at comprehensive merit scholarship programme for deserving Indian students for postgraduate and research studies in foreign universities to drive research and innovation in India post-completion of their studies. We also urge policymakers to advance public-private partnership models that accentuate the 'Study In India' initiative, which aims to reinforce India’s position as a Vishwa-Guru to the world.

The Union Finance Minister Nirmala Sitharaman had allocated Rs 99,300 crore for the Ministry of Education in 2020 — a hike of 4.6 per cent over Rs 94,855 crore in 2019. In 2021, the Education Ministry got an allocation of Rs 93,224 crores, Rs 1.04 lakh crore in 2022 and in 2023, Rs 1.12 lakh crore. The  Department of School Education was allocated Rs 68,804 crore last year and the Department of Higher Education was allocated Rs 44,094 crore.