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Decoding Budget 2020-21 for Education Sector

Education sector has received a major attention in Budget 2020-21. The total budget allocated for the education sector (HRD Ministry) is Rs 99,300 crore. Here’s how it will be distributed between the two departments – Department of School Education & Literacy; and Department of Higher Education.

Department of School Education & Literacy 

  • There has been an overall increase of Rs 3,308.37 cr (5.85%) in the budget allocation of Department of School Education and Literacy in the FY 2020-21 from FY 2020-21
  • The overall budget allocation in FY 2020-21 is Rs 59,845 cr out of which scheme allocation is Rs 50,600 cr and non-scheme allocation is Rs 9,245 cr.
  • RE 2019-20 was retained at the level of BE 2019-20.
  • Budget allocation in the flagship scheme of Samagra Shiksha has increased (by Rs 2,428.50 cr).
  • Allocation in KVS has increased by Rs 504.50 cr and in NVS by Rs 232 cr w.r.t BE 2019-20.
  • A new scheme, Pradhan Mantri Innovative Learning Programme (DHRUV) to identify and encourage talented children to enrich their skills and knowledge has been envisaged from FY 2020-21.

Department of Higher Education

  • Total allocation of higher education is Rs 39,466.52 cr against last year’s allocation of Rs 38,317.01 cr. There is an increase of about Rs 1,149.51 cr as compared to last year’s allocation.
  • A new scheme named, Education Quality Up-gradation and Inclusion Program (EQUIP), has been envisaged by the Department of Higher Education, MHRD. It is an overarching programme, which sets out to deliver further on the principles of access, inclusion, quality, excellence and enhancing employability in higher education. For this scheme, an initial budgetary provision of Rs 1,413 cr has been kept. Further budgetary provision shall be made after appraisal and approval of the scheme by the competent authority.
  • A provision has been made to strengthen the HEFA by infusing the additional government equity of
    Rs 2,200 cr. This will help in meeting the increasing budget requirement of the central institutions for improving or augmenting their infrastructure like buildings, classrooms, hostels, laboratories and equipment which are crucial elements of learning environments.
  • Rs 650 cr have been provisioned for World Bank assisted Technical Education Quality Improvement Programme (TEQIP). The project aims at enhancing quality and equity in engineering institutes and improving the efficiency of the engineering education system in focus states
  • The allocation for ‘Interest Subsidy and Contribution to Guarantee Fund’ has been maintained at
    Rs 1,900 cr. This is for disbursal of easy and interest-free loans to students who want to pursue professional higher education.
  • Total allocation to the Indian Institutes of Technology (IITs) is kept at Rs 7,332 cr, which is 14.38% more than the last year.
  • Total allocation to the National Institutes of Technology (NITs) is kept at Rs 3,885 cr, which is 2.58% more than the last year.
  • Total allocation for the regulators [UGC and AICTE] has been maintained at Rs 5,109.20 cr.

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