
Gifted A bonanza of an additional Rs 4,000 crore which could go up to Rs 5,000 crore, HRD Minister Arjun Singh today said that apart from convening the newly constituted Central Advisory Board on Education, he may have to call a meeting of all chief ministers and explain to them why this particular HRD budget was special.
This is the first time that an HRD minister has been given the opportunity to spend a mammoth sum of over Rs 16,000 crore only on elementary and higher education. It is almost 80 per cent more than what any HRD minister has ever spent on education. And if you add the budget of the other wing of the ministry 8212; the Women and Child Development Department 8212; then the total HRD budget surpasses Rs 18,000 crore.
When asked how he would deal with state governments which had seldom been able to spend the money allocated for education, Singh replied: 8216;8216;With all these limitations, and in the larger interest, it is a big responsibility.8217;8217;
With all this money coming his way and education expenditure really being given a push, Singh sounded upbeat: 8216;8216;The budget is very bold and it is also sensitive to the main problems mentioned in the CMP. I think it will have the correct impact on the people.8217;8217;
All the additional plans for the use of cess money that the HRD Ministry had submitted to the FinMin mandarins added up to Rs 3,950 crore. It appears that North Block has been gracious enough to retain the 2 per cent cess as discussed in the earlier stages and left scope for the Finance Ministry to plan and spend more if the states were cooperative enough.
Finance Minister P. Chidambaram said in his budget speech, 8216;8216;The new cess will yield Rs 4,000-Rs 5,000 crore in a full year. The whole of the amount collected as cess will be earmarked for education, which will naturally include providing a nutritious cooked mid-day meal. If primary education and the nutritious cooked meal scheme can work hand in hand, I believe there will be a new dawn for the poor children of India.8217;8217;
The budget, however, specifies the allocations under different heads for a total expenditure of a little above Rs 11,000 crore. This is the legacy of former HRD minister Murli Manohar Joshi. The specifics of the money promised from cess has not been elaborated upon. HRD officials are happy because it lends some flexibility to their plans, gives some leeway for course corrections later in the year.
An additional Rs 2,500 crore will be spent on mid-day meals alone. This is over and above the Rs 1,675 crore sanctioned in the interim budget.
For Sarva Shiksha Abhiyan SSA, the ministry wanted an extra Rs 1,100 crore over and above the Rs 3,035 crore it had received earlier this year from Joshi8217;s interim plan for the ongoing fiscal. Now the officials say that if need be they will spend more on the Abhiyan. They are, of course, being a little too optimistic on this count because the Abhiyan will also receive an additional Rs 1,900 crore from foreign agencies this year.
The Higher Education Department can claim some additional money 8212; at least Rs 350 crore 8212; for upgradation of colleges and universities in the backward districts and upgradation of polytechnics apart from a few other schemes.
Chidambaram today announced that ITIs or industrial training institutes would be modernised. As many as 500 of them would be upgraded in five years, which means 100 a year.
8226; Two per cent cess on income tax, corporation tax, excise and customs duties and service tax
8226; Cess to yield about Rs 4,000-5,000 crore pa earmarked for education including provision of nutritious cooked mid-day meal
8226; Programme in Central sector to upgrade 500 ITIs over next 5 years
8226; Commercial banks ready to waive collateral for educational loans upto Rs 7.5 lakh for satisfactory guarantee