Finance Focus

The Union Budget presented for 2012-13 by finance minister (FM) Pranab Mukherjee saw the allocation of generous amounts for education development at various levels. While drafting the budget, the FM had to consider the position of India’s economy with respect to global financial conditions. Despite the constraints, the allocations for the education sector appear in a positive vein, whether for primary, secondary, or vocational education. The Sarva Shiksha Abhiyan (SSA), started with the aim of universal elementary education, was allocated a whopping Rs. 25,555 crore. This is more than a 21 per cent increase over last year. These funds might achieve their goal faster than expected since, as per the proposal made, 6,000 schools will be initiated under the 12th Five Year Plan. Some experts are of the opinion that elementary education, as the base for all education, needs the maximum funds that can be spared. Others, however, think vocational education needs more attention, since a vast majority of our population is in the youth bracket, and many across sections of society are devoid of an education. These youth can definitely make a living with skills, and the minister’s team seems to have taken care of that aspect as well, with the whopping Rs. 1,000 crore allocation for the National Skill Development Fund. Skill development is an area that has gained a lot of importance over the last few years, since it provides a means to livelihood without a formal degree. A few institutes have introduced
programmes in skill development which culminate in a degree so that students opting for it do not lose out on being called ‘graduates’. In addition, lots of students across the country are happy about greater access to educational loans. FM Mukherjee proposed to set up a Credit Guarantee Fund to ensure better flow of credit to deserving students. However, some are sceptical. Merely setting up a fund does not ensure that the money reaches deserving candidates. Generating awareness is also essential to the fund’s efficacy.
“In the light of slower economic growth, an18 per cent increase in budget allocation for education definitely gives us hope,” says Anil Goyal, Director – Strategy and Business Development, Mexus Education. He added, “We are looking forward to a better defined regulatory structure for utilisation of pre-deployed ICT in schools; with dedicated Rs. 975 crores in e-governance. However, this budget leaves a lot to be desired for capacity enhancement and encouraging private sector participation.” Whatever the situation, the education sector can certainly benefit from such reforms. The more the money, the more the growth.

Highlights of the Union Budget 2012 with respect to education
• Rs. 25, 555 crore allocation to Right to Education (RTE) – Sarva Shiksha Abhiyan (SSA)
• Rs. 3,124 crore for the Rashtriya Madhyamik Shiksha Abhiyan
• 6,000 to be set up as model schools in the 12th Five Year Plan. 2,500 of these to be set up under public-private partnership
• Setting up of a Credit Guarantee Fund for better flow of credit to students
• Rs. 15, 850 crore allocation for Integrated Child Development Services (ICDS) scheme
• Rs.11, 937 crore allocation for National Programme of Mid-Day Meals in schools for the year 2012-13
• An allocation of Rs. 750 crore proposed for Rajiv Gandhi Scheme for
Empowerment of Adolescent Girls
• Allocation of Rs. 1,000 crore for National Skill Development Fund

Volume 1 Issue 11