 "Budget 2024: Highlights of education budget under Modi govt since 2014")
Earlier this year, Finance Minister Nirmala Sitharam informed the public that they should not expect any major announcements during the interim Budget 2024. Over the past two financial years, education has seen a massive increase in funds allocated towards increasing outreach, skill development, and improving the quality of education.
Next year’s interim Budget will mark the Bharatiya Janata Party’s 10th budget announcement. Before the Budget is unveiled on February 1, 2024, here is a look back on India’s education budget highlights over the past decade, starting from the financial year 2014-15 (FY15) to 2023-24 (FY24).
Education Budget 2014: Addressing teacher shortage & skill programmes
In the 2014 Union Budget, Rs 68,728 crore was allocated for education. The Budget focused on addressing teacher shortage through training programmes and introduced skills programmes for the first time. Rs 100 crore was also infused for virtual classrooms under “Communication Linked Interface for Cultivating Knowledge” or CLICK.
- Rs 30 crore for School Assessment Programme
- Rs 500 crore for Pandit Madan Mohan Malviya New Teachers Training Programme to address 1.2 million teacher shortage at the time.
- Rs 100 crore for virtual classrooms (CLICK)
- Skill India programme consolidation
- Rashtriya Uchchatar Shiksha Abhiyan allocation increase from Rs 400 crore to Rs 2,200 crore
Education Budget 2015: Education loans, focus on higher education
In 2015, the education sector received Rs 68,968 crore (0.34 per cent increase), with Rs 26,855 crore for the Department of Higher Education and Rs 42,219 for the Department of School Education and Literacy.
The Budget shifted focus to higher education, including opening new government institutes and introducing new education loan schemes.
- Rs 26,855 crore for Department of Higher Education
- Rs 42,219 crore for Department of School Education and Literacy
- Establishment of five new AIIMS, two IIMs, and two IITs to bolster higher education
- Upgrade of over 80,000 secondary schools
- Launch of 'Nai Manzil', an integrated education and livelihood scheme for secondary education
- Introduction of education loan schemes, such as Pradhan Mantri Vidya Lakshmi Karyakram and Deen Dayal Upadhyay Gramin Kaushal Yojana
Education Budget 2016: International education hub
The 2016 budget allocated Rs 72,394 crore for education, marking a 4.9 per cent increase from the previous year. School education received Rs 43,554 crore (three per cent increase), and higher education saw Rs 28,840 crore (7.3 per cent increase). The Budget focused on strengthening higher education and establishing India as a global education hub. Higher Education Funding Agency (HEFA) was also established to strengthen financial support for infrastructure development and research in higher education institutes.
- Rs 43,554 crore for school education
- Rs 28,840 crore for higher education
- Commitment to make 10 private and 10 public institutions world-class
- Rs 1,700 crore for multi-skill development centres
- Rs 500 crore to promote SC/ST entrepreneurship
- Establishment of Higher Education Funding Agency (HEFA) with initial funding of Rs 1,000 crore
- Digital Literacy Mission and opening of 62 new Navodaya Vidyalayas
Education Budget 2017: National Testing Agency established, focus on quality
Union Budget 2017 allocated Rs 79,685.95 crore for the education sector, up from Rs —a 9.9 per cent increase from the previous year, which was Rs 72,394 crore in 2016-17. This was later revised to Rs 81,868 crore. Of the initial allocation, Rs 46,356.25 went to the school sector, leaving Rs 33,329.7 for higher education. The Budget prioritised advancing education quality. The National Testing Agency was established and more skill development initiatives were introduced.
- Colleges granted autonomous status based on accreditation
- National Testing Agency established for entrance exams
- Skill development initiatives - Skill Strengthening for Industrial Value Enhancement (STRIVE) and Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme (SANKALP), introduced to provide market-relevant training for youth
- 100 India International skills centres and 350 online courses on SWAYAM announced
- Structural transformation of the regulatory framework for medical education
- HEFA allocated Rs 250 crore
Education Budget 2018: ‘Study in India’ programme introduced
In 2018, the Union Budget allocated Rs 1.38 trillion for health, education, and social security. Of this, Rs 83,626 crore (revised estimate) went towards education, a 3.8 per cent increase over the revised estimate of Budget 2017. The government also pledged to contribute 12 per cent of wages to the employee provident fund for new employees to help foster job creation. The 2018 budget aimed at a digital transformation in education, attracting foreign students and job creation. Additionally, the Budget focused on strengthening agriculture, rural development, health, and education.
- School education receives Rs 50,000 crore (up 6.4 per cent over revised estimates)
- Higher education allocated Rs 35,010 crore (up 0.4 per cent over revised estimates)
- Digital transformation in education with the shift from regular blackboards to digital boards.
- 12 per cent contribution to employee provident fund for new employees
- Abolition of education cess and secondary and higher education cess on imported goods
- IIT Budget decreased to Rs 6,326 crore from Rs 8,244.8 crore
- Diksha programme for teacher training introduced
- 'Study in India' programme was launched to attract foreign students
- HEFA allocation increases to Rs 2,750 crore
Education Budget 2019: Promotion of sports education
The 2019 budget allocated Rs 94,853.64 crore to the education sector, reflecting a 13.4 per cent increase. It also made up three per cent of the central government’s estimated expenditure for the financial year.
The Budget emphasised imparting new-age skills in areas like artificial intelligence and robotics, as well as skill training. National Sports Education Board to promote sports education.
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- School education allotted Rs 56,537 crore (12.8 per cent increase from revised estimates)
- Higher education allocated 38,317 (14.3 per cent increase from revised estimates)
- 'Kayakave Kailasa' initiative launched for skill training through the Pradhan Mantri Kaushal Vikas Yojana
- National Sports Education Board established to promote sports education in India
- 'Gandhi-pedia' introduced: An AI-enabled repository of the life, philosophy and teachings of Mahatma Gandhi.
- Development of the National Artificial Intelligence portal and Centre on Artificial Intelligence
Education Budget 2020: NEP 2020 recommends 6 per cent of GDP for education
In the 2020 budget, Finance Minister Nirmala Sitharaman allocated a significant Rs 99,300 crore (up five per cent) for the education sector, with an additional Rs 3,000 crore earmarked for skill development.
The Budget focused on drawing investment into the education sector and implementing the National Education Policy (NEP) 2020. Foreign Direct Investment (FDI) and External Commercial Borrowings (ECB) were introduced to education to boost global collaboration.
The Draft National Education Policy released in May 2019 proposed 6 per cent of GDP as the minimum expenditure on education, starting discussion on how long it would take for the Centre to reach this goal.
- Rs 99,300 crore allocation for education and Rs 3,000 crore for skill development
- Proposal for FDI and ECB in education
- Announcement of degree-level online education programme or deprived sections
- Establishment of National Police University and National Forensic University
- Common Eligibility Test for non-gazetted government jobs
Education Budget 2021: Aligning with NEP 2020
In the 2021 Union Budget, the education ministry was allocated Rs 93,224, a 2.1 per cent increase over the actual expenditure of the prior year. It made up 2.67 per cent of the government’s estimated expenditure for the financial year.
The 2021 budget aligned with the National Education Policy's reforms, which also reaffirms the allotment of six per cent of the GDP to education. This included increasing the outreach of both secondary and higher education through the establishment of new schools and a central university in Leh. Skill development initiatives involved amending the Apprenticeship Act and partnering with the UAE and Japan.
- School education was allocated Rs 54,874 crore (up 2.2 per cent to actual expenditure in FY21)
- Higher education was allotted Rs 38,351 crore (up 1.9 per cent to actual expenditure in FY21)
- Over 15,000 schools planned under NEP
- Establishment of the Higher Education Commission (HEC) , an umbrella commission overlooking four bodies - standard setting, accreditation, regulation, and funding.
- Focus on SC/ST welfare with Ekalavya Model Residential Schools and scholarships
- Amendments in the Apprenticeship Act and international collaborations for skill development
- Set up of a central university in Leh
- 100 new Sainik Schools to set up in partnership with non-government organisations, private schools, and states
Education Budget 2022: Education budget crosses Rs 1 trillion
In 2022, the education budget saw a substantial increase to Rs 1.04 trillion, marking a rise of 18.5 per cent increase over the revised expenditure in 2021-22. This allocation constituted three per cent of the central government’s overall estimated expenditure for FY23.
The concept of “exemplar schools” continued, with an increase in budget allocation for teachers' training. However, certain scholarship schemes, like the National Scheme for Incentives to Girls, witnessed reduced or no allocations. The focus on Kendriya Vidyalaya Sangathan and Navodaya Vidyalaya Samiti also continued, with emphasis on providing quality education.
- Substantial increase in education budget to Rs 1,04,278 crore
- School Education received Rs 63,449.37 crore (up 22.1 per cent to FY22 revised expectations)
- Higher Education was allocated Rs 40,828 crore (up 13.3 per cent to FY22 revised expectations)
- Emphasis on 'exemplar schools,' teachers' training, and specific institutions
- Varied allocations for scholarship schemes
- Continuing focus on Kendriya Vidyalaya Sangathan and Navodaya Vidyalaya Samiti
- Midday meal renamed PM Poshan in September 2021
Education Budget 2023
In the 2023 budget, the Ministry of Education received an allocation of Rs 1,12,899 crore, reflecting a 13 per cent increase. This made up 2.9 per cent the central government’s overall estimated expenditure for FY24.
The Samagra Shiksha Abhiyaan emerged as the primary recipient of funds at Rs 37,453 crore, followed by autonomous bodies. The Budget aimed at recruiting over 38,000 teachers for Ekalavya Schools, introducing dedicated research programs, establishing new research centres, and revising the apprenticeship scheme. The commitment to education growth was evident in the increased allocation and diverse initiatives.
- Rs 1,12,899 crore allocation for education, a rise of 13 per cent
- School Education received Rs 68,805 crore (up 16.5 per cent to FY23 revised expectations)
- Higher Education was allocated Rs 44,095 crore (up eight per cent to FY23 revised expectations)
- Focus on recruitment for Ekalavya Schools, research programs, and new research centres
- Revision of apprenticeship scheme and addition of 157 new nursing colleges
- Emphasis on Samagra Shiksha Abhiyaan and increased allocations for various schemes