NEW DELHI: Union Finance Minister Nirmala Sitharaman announced an allocation of Rs 1.20 lakh crore for education in the Union Budget for 2024-25. The salient point of the proposals is that loans up to Rs 10 lakh for higher education in domestic institutions will be facilitated through e-vouchers, directly benefiting one lakh students annually with an interest subvention of 3%.
The Budget introduced significant financial support for higher education loans while imposing a substantial cut on the University Grants Commission (UGC) budget by over 60%.
Despite significant budgetary reductions in some areas, the overall allocation for the Ministry of Education has been pegged at over Rs 1.20 lakh crore, down from the revised estimate of Rs 1.29 lakh crore in the previous financial year.
The UGC funding has been dramatically reduced from the previous year’s revised estimate of Rs 6,409 crore to Rs 2,500 crore, marking a 60.99% cut. The budget for Indian Institutes of Management (IIMs) too has been cut for the second consecutive year, dropping from Rs 331 crore to Rs 212 crore. Indian Institutes of Technology (IITs) have also experienced a marginal budget cut from Rs 10,384.21 crore to Rs 10,324.50 crore.
The budget for Central universities has seen a significant increase by over 28%, rising to Rs 15,472 crore from the previous revised estimate of Rs 12,000.08 crore. Additionally, the budget for school education has increased by over Rs 535 crore, benefiting Kendriya Vidyalayas, Navodaya Vidyalayas, NCERT, PM Shri schools, and state governments.
UGC chairman M. Jagadesh Kumar said an allocation of Rs 47,619 crore to higher education marked an 8% increase over last year’s budget. He said the UGC budget includes three components: UGC, Central universities, and deemed universities. From 2024-25, funding for colleges affiliated with Central universities will shift from UGC to Central universities budget line.
Significant financial aid
Budget introduced significant financial support for higher education loans while imposing a substantial cut on the University Grants Commission (UGC) budget by over 60%