Union Budget for education sector and Skill Development

The government has articulated several initiatives to give a boost to public-private partnership in this sector. PPP schemes for 2,500 schools and credit guarantee fund for education loans to students is likely to pave the way for more private investments in higher education, especially foreign direct investment (FDI). The increase in budgetary allocations for school education and adult literacy is also a welcome step. Emphasis on education for girl children, which is proposed to be enhanced from Rs 1,265 to Rs 3,000 per child in 2012-13 is a step forward. The government's move to increase the exemption limit for children's education allowance from Rs 100 per month to Rs 1,000 per month per child is also a good move. 



It is a welcome move that the Centre has allotted Rs 1,000 crore for skill development this year, compared to Rs 500 crore last year. This will provide more opportunities to accelerate the skilling of labour for various sectors of the economy. With the added budget allocation, we expect the Centre and states to come up with more partnership programmes with the private sector to reach the common goal of improving employability of the youth in India.

Government's allocation of Rs 1,000 crore for National Skill Development Fund is along expected lines. This will allow for a swift roll-out of vocational education to our youth across the country, including those in Tier II and Tier III cities, where it is needed. A 34% increase in budgetary allocation for NLRM (National Rural Livelihood Mission) is again a step in the right direction as is the introduction of Credit Guarantee Fund for Education Loans, which will allow those at the bottom of the pyramid to avail of loans for job-linked vocational skills and move up the value chain.While the focus has been on infrastructure and rural development, education has also retained its importance this year. An increase in allocation by 21.7% for Right to Education - Sarva Shiksha Abhiyan to Rs 25,555 crore and by 29% for Rashtriya Madhyamik Shiksha Abhiyan to Rs 3,124 crore reiterates the government's commitment towards education. The FM proposed to set up a Credit Guarantee Fund to ensure better flow of funds to students. Over 70% of Indians will be of working age in 2025. In this context, universalising access to secondary education, increasing the percentage of our scholars in higher education and providing skill training is necessary.