Education Budget 2024: How Modi 3.0 Budget Is Different From The Modi 1.0 And Modi 2.0 Budgets?

Finance Minister Nirmala Sitharaman presented the Union Education Budget 2024 today. This was her 7th Budget speech under Prime Minister Narendra Modi’s leadership. With this budget, Ms. Sitharaman made history by presenting it for the record 7th time. Earlier former finance minister Morarji Desai presented it for the six times.

This year’s education budget has seen an increment in the sector with a major focus on skill development. Education loans, interest subventions, upgradation of ITIs, internships to students with companies, utilization of Corporate Social Responsibility fund of the private companies, skills loans, and Artificial Intelligence have been the key focus areas of the government announcements under the Budget 2024. Upskilling of youth according to the market need remained a priority of the government as to increase the employaility of the graduates. As per the economic survey 2023 out of the total youth coming out of the colleges half are not suited to the employment conditions and are not skilled accordingly. So this year’s budget seems to fulfill the deficiency of skilling of youth.

Union Budget 2024: Key Highlights

• The center has allocated Rs 1.48 lakh crore in education, employment, and skill development.
• Students pursuing higher education at domestic institutions will get loan assistance of up to Rs 10 lakh.
• E-vouchers will be distributed to 1 lakh students yearly with a 3% interest subvention on the loan.
• A new centrally funded scheme will be launched in partnership with the state governments and companies to train nearly 20 lakh young people over five years.
• 1,000 ITIs will be updated with training content and design linked to industry skill requirements. The hub-and-spoke model will be followed to update the ITIs.
• Internships to 1 crore youths in 500 top companies with a stipend of Rs 5,000 and a one-time aid of Rs, 6000 will be offered. Companies will use CSR funds for the government’s internships by covering training costs and 10% of the internship cost.
• Skilling loans under model skill loan schemes for up to 7 lakh rupees will benefit nearly 25,000 students each year.
• 3 centres of excellence for Artificial Intelligence will be established in premier educational institutions.

Comparative Analysis of Modi 1.0, Modi 2.0 and Modi 3.0 budget allocation in education sector

In 2014 the Union Budget of Rs 68,728 was allocated for education addresing teacher shortages, teacher training program, Skill India programme and Rashtriya Uchchatar Shiksha Abhiyan.

In 2015 the budget was marginally increased by 0.34% to Rs 68,968 with Rs. 26,855 crore for higher education and Rs 42,219 for the department of schood education and literacy. Introduction of education loan schemes such as Pradhan Mantri Vidya Lakshmi Karyakaram and opening of new AIIMS, two IIMs and two IITs.

In 2016 the budget allocation was Rs 72,394 crore with a 4.9% increased budget from the previous year. Higher education received 7.3% higher allocation. Higher Education was the primary focus with the establishment of Higher Education Funding Agency (HEFA). Multi-skill development centres worth Rs 1,700 crore were supposedly to be opened.

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In 2017, Rs 79,685.95 crore were allocated – up by a 9.9%. The margin for higher education got increased with opening up of National Testing Agency granting college autonomy, several skill development initiatives, skilling centres, structural transformation etc.

In 2018, 83,626 crores were allocated to education -up by a 3.8 percent from the earlier budget. Focus was the digital transformation of education. Attracting foreign students with the introduction of study in India program. IIT budget increased. school education budget went up by 6.4%.

In 2019, the budget allocation was 94,853 .64 crore with a whopping increment of 13.4% which was 3% of the central governments estimated expenditure. Sports education, artificial intelligence and robotics and skill training remained the new developments.

In 2020, Rs 99,300 crore were allocated with Rs 3000 crore earmarked for skill development. The NEP 2020 suggested to allocate the 6% of GDP to education. FDI and External Commercial Borrowings were introduced in education to boost global collaborations.

In 2021, Rs 93,224 crore was allocated which was the 2.67% of the government’s expenditure. New schools, new university in Leh, amendment in Apprenticeship Act and international collaboration for skill development remianed key features.

Read also: Economic Survey 2023-24: How AI Can Impact Employment?

In 2022, 1.04 lakh crore marking a rise of 18.5 of the previous year was allocated which was 3%of the government’s expenditure. Emphasise was given to exempler schools, teachers training, PM Poshan. School education allocation went up by 22% and higher education allocation by 13.3%.

In the Budget 2023, the Ministry of Education got the largest – ever allocation of Rs 1,12,898.97 crore from the centre. 44,092 crore went to the higher education while 68,804 went to the school education. A 13% increament and 2.9 % of the total government’s expenditure. In 2023, a National Digital Library was established.