Chandu M R, Research Associate
As India stands at the threshold of global economic leadership, the interplay between education, employment, and skill development has never been more crucial. The Union Budget 2024-25, with its substantial allocation of ₹1.48 lakh crore for education, employment, and skill development, marks a pivotal moment in India’s educational journey. This budget is not just a financial plan, but a roadmap that will shape the future of education in the country. This budget, allocating ₹1,25,638 crore specifically for education, represents a 7.7% increase from the previous year. While this commitment to human capital development is commendable, we at Involve believe that the root causes of learning gaps in government schools necessitate more than just increased funding. It’s time for a paradigm shift towards student-centered practices and collaborative learning environments, a change that is urgently needed in our education system.
While the budget introduces promising measures, it also prompts meaningful discussions about educational equity, accessibility, and the adequacy of overall funding for GDP. This analysis will delve into the key allocations, new initiatives, and potential impacts of the Union Budget 2024-25. It will examine how it aims to transform India’s educational landscape across all levels – from primary schools to higher education institutions. We will stress the urgency of these issues and explore the budget’s implications for various stakeholders, including students in government schools, and consider how it addresses critical challenges such as improving foundational learning, enhancing student engagement, and developing future-ready skills.
The Union Budget 2024-25 has allocated ₹1.48 lakh crore for Education, Employment, and Skilling, with ₹1,25,638 crore earmarked explicitly for education. This represents a modest increase from the previous year’s allocation of ₹1.16 lakh crore, marking a 7.7% rise. This represents 2.5% of the total national spending allocation, not including state-level education spending. However, it’s crucial to note that the education budget remains at 2.7% of GDP, falling significantly short of the National Education Policy 2020 recommendation of 6% and the UNESCO ideal recommendation of 4-6%.
Department of School Education: Increased from ₹68,804 crore to ₹73,008 crore. However, 61% of the national-level education spending (a 6.1% increase from the previous year)
Higher Education Department: Increased from ₹44,090 crore to ₹47,619 crore. However, 39% of the total national budget outlay (8% increase over last year’s budget estimates, but 16% lower than the revised spending estimates for 2023-24)
Focus on Central Institutions: The substantial increase in funding for IITs, NITs, IISERs, and Central Universities indicates a strong emphasis on strengthening premier institutions. This could enhance research capabilities and improve India’s global education rankings.
Holistic Approach to School Education: The increased allocations for PM POSHAN and PMSHRI demonstrate a commitment to addressing nutritional and infrastructural needs in schools. This holistic approach could significantly benefit student health and learning outcomes.
Shift in Higher Education Strategy: The introduction of PMUSHA, which has replaced funding under the Rashtriya Uchhatar Shiksha Abhiyan (RUSA) scheme, coupled with increased funding for central institutions, suggests a new approach to higher education development. This may involve more targeted support for state universities and colleges, addressing regional disparities in education quality.
Emphasis on Centrally Managed School Systems: The boost in funding for Kendriya Vidyalaya Sangathan and Navodaya Vidyalaya Samiti indicates a focus on improving and expanding these centrally managed school networks.
Continued Gap in Overall Allocation: Despite the increases, the education budget remains at 2.7% of GDP, significantly below the NEP 2020 recommendation of 6%. This persistent gap poses challenges for comprehensive educational reforms and infrastructure development.
Samagra Shiksha: Allocation: ₹37,499.99 crore (including funding from MUSK and PSK) This integrated scheme aims to provide holistic education from preschool to senior secondary levels, aligning with the National Education Policy (NEP) 2020 objectives.
PM POSHAN: Allocation: ₹12,467.39 crore (including ₹12,000 crore from PSK) Formerly known as the Mid-Day Meal scheme, it continues to address the nutritional needs of school children, potentially improving attendance and learning outcomes.
Kendriya Vidyalaya Sangathan (KVS): Allocation: ₹9,302.67 crore (including ₹2,000 crore from MUSK) This allocation supports the network of central government schools, ensuring quality education for children of transferable government employees.
Navodaya Vidyalaya Samiti (NVS): Allocation: ₹5,800 crore (including ₹3,000 crore from MUSK). These residential schools aim to provide quality education to talented children from rural areas, promoting educational equity.
PM Schools for Rising India (PM SHRI): Allocation: ₹6,050 crore This new scheme aims to develop over 15,000 schools of excellence, showcasing NEP 2020 implementation and potentially setting new standards in school education.
Strengthening Teaching-Learning and Results for States (STARS): Allocation: ₹1,250 crore. This project supports states in improving education outcomes and school-to-work transition strategies, aligning with NEP 2020 objectives.
New India Literacy Programme (NILP): Allocation: ₹160 crore This adult education initiative is designed to align with NEP 2020 recommendations, addressing literacy needs beyond formal schooling years.
These allocations and changes reflect a nuanced approach to education funding, emphasizing strengthening central institutions and addressing specific areas within school education. However, the modest overall increase and the unchanged GDP percentage allocation indicate significant challenges in meeting the ambitious goals of the National Education Policy 2020.
The Union Budget 2024-25 introduces several groundbreaking initiatives to enhance youth employability, support higher education, and boost research and development. These new programs demonstrate a shift towards more practical, industry-oriented education and skill development:
Youth Internship Initiative
An ambitious plan to provide internships to 1 crore youth in top 500 companies
10% of training costs to be borne by industries through CSR funds
Financial support: ₹5,000 monthly internship allowance and ₹6,000 one-time assistance
This initiative aims to bridge the gap between education and industry requirements, potentially improving employability.
Financial Support for Higher Education
Introduction of financial support for loans up to ₹ ten lakhs for higher education in domestic institutions
E-vouchers to be provided to 1 lakh students annually
3% interest subvention on education loan amounts
This measure could significantly reduce the financial burden on students and families, making higher education more accessible.
Skill Development and Employment
Upgrading of 1,000 industrial training institutes
This complements the internship scheme, focusing on enhancing the quality of vocational education.
National Research Foundation
Launch of ‘Anusandhan,’ India’s National Research Foundation
Operationalized by the Department of Science and Technology under the Anusandhan National Research Foundation Act, 2023
Aims to strengthen and promote the R&D ecosystem in India
The government will operationalize the Anusandhan National Research Fund.
Industry-Education Alignment: The Youth Internship Initiative represents a significant step towards aligning education with industry needs. This program could create a more seamless transition from education to employment by involving top companies and utilizing CSR funds.
Accessibility to Higher Education: The financial support measures for higher education loans and the provision of e-vouchers could make quality education more accessible to a broader segment of the population, potentially reducing educational inequalities.
Focus on Practical Skills: The upgrading of industrial training institutes, coupled with the internship program, indicates a strong emphasis on practical, job-ready skills. This could help address the skills gap often cited by employers.
Boost to Research and Innovation: Establishing the Anusandhan National Research Foundation signifies a commitment to enhancing India’s research capabilities. This could impact innovation, technological advancement, and India’s global competitiveness.
While these initiatives focus on employability and higher education access, it’s crucial to consider how they will impact learning at the foundational levels, particularly in government schools. Addressing challenges such as multi-grade classrooms and promoting student-centered learning approaches complement these higher education and skill development initiatives, creating a more robust educational pipeline.
Selective Institution Focus: The budget shows a preference for establishing world-class institutions, potentially at the expense of broader public school infrastructure. This approach may increase disparities between elite institutions and government schools at the primary and secondary levels.
Online Education Push: Increased funding for initiatives like the Academic Bank of Credit raises educational quality and inclusivity concerns, particularly for students in government schools with limited digital access.
Foundational Learning: While there’s an emphasis on higher education and skill development, the budget doesn’t explicitly address strategies to improve foundational learning and student engagement in government schools, which are crucial for long-term educational success.
Nutritional Programs: While there’s an increase in the PM-Poshan scheme, cuts to Anganwadi budgets and insufficient allocation compared to previous years raise concerns about addressing child malnutrition effectively.
Scholarship Scheme Consolidation: The merger of various scholarship schemes into the PM-USP scheme has raised questions about transparency and accountability in expenditure.
Educational Inequality: The focus on elite institutions and online education may exacerbate existing educational disparities, particularly affecting students from disadvantaged backgrounds and those in government schools.
Quality of Public Education: Reduced funding for public universities and a limited increase in school education could lead to challenges in improving infrastructure and learning environments, especially in government schools.
Skill Development: The emphasis on internships and industrial training institutes could improve employability, but it’s crucial to ensure these programs are accessible to all students, including those from government schools. Additionally, developing essential life skills early could enhance the effectiveness of these later-stage initiatives.
Research and Innovation: While the Anusandhan National Research Foundation is a positive step, overall cuts to higher education might hamper research capabilities in public institutions.
Nutritional Challenges: Cuts to early childhood care programs may have long-term implications for child health and development.
Increase Overall Allocation: Gradually increase the education budget to align with the recommended 6% of GDP.
Balanced Development: Ensure equitable funding distribution between elite institutions and broader public education infrastructure, including government schools.
Strengthen Foundational Learning: Allocate resources to improve foundational learning and student engagement in government schools, possibly through innovative pedagogical approaches and peer learning programs.
Promote Student Agency: Develop initiatives encouraging active student participation and collaborative learning environments, particularly in government schools.
Address Multi-Grade Challenges: Allocate resources to tackle the unique challenges of single-teacher setups and multi-grade multi-level classrooms in government schools.
Integrate Life Skills Development: Ensure that curriculum reforms and teacher training programs emphasize developing essential life skills alongside academic learning from an early age.
Enhance Early Childhood Care: Restore and increase funding for Anganwadis and nutrition programs.
Digital Inclusion: Implement measures to ensure that the push towards online education doesn’t exclude disadvantaged students.
Transparent Scholarship Management: Ensure clear guidelines and accountability in the consolidated scholarship scheme.
Public-Private Partnerships: Develop robust policies to encourage PPPs in education, bringing innovative solutions and increased funding.
Focus on Learning Outcomes: Implement targeted interventions within the K-12 system to enhance learning outcomes.
The Union Budget 2024-25 demonstrates the government’s commitment to education through increased allocations and innovative initiatives. It presents a vision for enhancing higher education access, improving employability, and boosting research capabilities. The focus on skill development and industry alignment through programs like the Youth Internship Initiative and upgrading industrial training institutes signals a push towards creating a more job-ready workforce.
However, the budget also reveals areas that require further attention. The modest overall increase and unchanged GDP percentage allocation indicate significant challenges in meeting the ambitious goals of the National Education Policy 2020. There’s a need for a more balanced approach that addresses the foundational needs of public institutions, particularly government schools, while also pushing for innovation and excellence in higher education.
To truly transform India’s education system and achieve the goals of SDG-4, it is crucial to focus on:
Increasing overall allocation to align with the recommended 6% of GDP gradually
Ensuring equitable development across all levels of education
Strengthening foundational learning and student engagement in government schools
Promoting student-centered practices and collaborative learning environments
Developing essential life skills alongside academic and technical skills.
As we move forward, policymakers, educators, and civil society organizations must work collaboratively to create an education system that imparts knowledge and nurtures critical thinking, problem-solving, and collaboration skills. By addressing the unique challenges at each level of education and fostering a culture of active learning, we can ensure that all children, regardless of their background, can thrive and contribute meaningfully to India’s future.
This budget sets the stage for significant changes in India’s education sector. Its success will depend on effective implementation, sustained funding, and close collaboration between educational institutions, industry partners, and government bodies. As stakeholders in India’s academic landscape, it is our collective responsibility to monitor the roll-out of these initiatives, advocate for necessary improvements, and contribute to creating an education system that truly empowers every learner.
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