Indian Budget Series: Budget for Education
27-02-2024
The Department of School Education and Literacy oversees education for individuals aged 6 to 18, specifically focusing on school education. In compliance with the Right to Education (RTE) Act of 2009, elementary education is considered a fundamental right for children aged 6 to 14, provided up to class 8. The government is obligated to ensure the provision of elementary education to all eligible children. Secondary education is from classes 9 to 12, targeting individuals aged 14 to 18.
Over the past ten years, from 2014-15 to 2024-25(I), the budget for the Department of School Education has increased except for a reduction in 2015-16 and 2021-22. There has been an increase of 32.46% and an annual growth of 3.5%. As a percentage of the total budget estimate, the percentage has been reduced by 50% from 3.07% to 1.53% during the same period. In 2024-25(I), ?73,008 crores are allocated to the department, with a meagre rise from the revised estimates of 2023-24.
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Over the last decade, the average budget-allocated utilisation has stood at 92.4%. However, in the recent three years—2020-21, 2021-22, and 2022-23—the utilisation rates were recorded at 86.6%, 85.3%, and 92.4% respectively. Some of the major expenditures of the department are Samagra Shiksha, POSHAN, and autonomous bodies.
Samagra Shiksha
It is a comprehensive program for school education designed to achieve inclusive and high-quality education at all levels, from pre-primary to senior secondary, in alignment with the Sustainable Development Goal (SDG) for education. The program views school education as a seamless continuum, promoting efficiency in resource allocation and effective utilisation of both budgetary and human resources.
In 2019, the previously separate initiatives of Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA), and Strengthening of Teacher Training Institutions were amalgamated to create the Samagra Shiksha Scheme. This merger aims to provide a holistic approach to school education.
The allocation to Samagra Shiksha has experienced a 12% increase compared to the revised estimates of 2023-24, constituting 51.36% of the total budget. However, budget allocations to this scheme have only seen a marginal rise of 3.24% since 2019-20. On average, the budget utilisation between 2019-20 and 2022-23 stands at 82%.
PM-POSHAN
In 1995, the National Programme of Nutritional Support to Primary Education, widely known as the Mid-Day Meal Scheme, was launched with the dual objectives of increasing enrollment, retention, and attendance while concurrently improving the nutritional levels of children. From the academic year 2008-09 onward, the program extended its coverage to include all children in classes I to VIII nationwide.
In the year 2022-23, the Mid-day Meal Scheme was replaced by the Pradhan Mantri Poshan Shakti Nirman (PM-POSHAN). This rights-based Centrally Sponsored Scheme, operating under the National Food Security Act, 2013 (NFSA), aimed to broaden its scope to encompass pre-primary students or Bal Vatikas, in addition to elementary students.
Allocation to POSHAN witnessed a notable increase of 24.67% compared to the revised estimates of 2023-24, constituting 17% of the total budget for the department. The budget utilisation in the fiscal year 2022-23 exceeded the allocated funds, reaching 124%. However, in 2021-22, the budget utilisation was only 88.97%.
Autonomous Bodies
Autonomous bodies include institutions like Kendriya Vidyalaya (KV), the National Council for Educational Research and Training (NCERT), the National Bal Bhawan, and the Central Tibetian School Administration. Allocation for this in 2024-25 is 21% of the total budget of the department and has seen a significant increase of 114% since the budget allocation for 2017-18. A majority of the budget is allocated to KV and NCERT, comprising 63% of the autonomous bodies budget in 2024-25.
The Department of Higher Education oversees the provision of higher and technical education and training for individuals aged 18 and above. Higher education includes undergraduate and postgraduate programs, doctoral degrees, and certificates, all accessible after the successful completion of 12 years of schooling or its equivalent.
Over the past decade, covering the period from 2014-15 to 2024-25(I), the budget for the Department of School Education has consistently witnessed annual increases. There has been a cumulative rise of 72%, with an average annual growth rate of 5.5%. However, the share of the budget estimate as a percentage of the total has decreased from 1.6% to 1% over the same period. In the financial year 2024-25(I), an allocation of ?47,619 crores has been made, marking an 18% reduction from the revised estimates of 2023-24.
Throughout the last ten years, the average utilisation of the allocated budget has been at 92.3%. Nevertheless, in the most recent three years—2020-21, 2021-22, and 2022-23—the utilisation rates were recorded at 82.0%, 87.4%, and 94.4%, respectively.
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Under this department, 77.5% of the total budget is for various autonomous bodies. Some of the autonomous bodies are central universities, the Indian Institute of Technology (IIT), the Indian Institute of Management (IIM), and the Indian Institute of Science, Education, and Research (IISER).
In comparison to the 2019-20 budget estimate, allocations for Central University, IIT, and IISER have increased by 132%, 61%, and 71.26%, respectively. Meanwhile, IIMs have seen a 50% reduction in their allocation.
The allocation of budget for research and innovation has been fluctuating in the past 10 years. However, it reached a peak in 2019-20 with an allocation of ?608 crores. In 2024-25(I), the budget allocated is ?355 crores, 83% more than the revised estimates of 2023-24.
Ministry of Minority Affairs
Schemes like providing education to Madrasa/Minority, the Scheme for providing Quality education in madrasas (SPQEM), and the Scheme for Infrastructure Development in Minority Institutions were initially a part of the Department of School Education budget were shifted to the Ministry of Minority Affairs.
The education empowerment section of the department consists of pre- and post-matric scholarships for minority students and the Maulana Azad National Fellowship for Minority students. The budget for education empowerment, from 2019-20, has seen a reduction of 33.3%, and it makes, on average, 50% of the total budget for the ministry.
The pre-matric scholarship was changed from all students up to class 10th to only students in class 9th and 10th in 2023 –24. The government quoted ‘cogent reasons’, to make this change. It was also mentioned that students until the 8th are covered by the RTE act. While pre-matric scholarships and Maulana Azad fellowships have been drastically reduced by 73% and 70%, respectively, since 2019-20, the post-matric scholarship has increased by 130%.
Another section, which is the Umbrella program for the Development of Minorities, consists of Pradhan Mantri Jan Vikas Karyakram (PMJVK) and Education schemes for Madrasa and Minorities. The allocation for this section has also seen a reduction of 38% since 2019-20.
The education scheme for Madrasas and Minorities is to grant financial assistance to introduce modern subjects in Madrasas, teach training, and augment school infrastructure in minority institutions. The allocation for this scheme has seen a drastic reduction from 174 crores in 2021-22 to merely 2 crores in 2024-25.
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