After a cut of 8.4 per cent for school education, and 2.8 per cent reduction for higher education (14 per cent and 8.8 per cent after adjusting for inflation) in the Central budget earlier this year, all eyes were on the State education budget. For FY 2020-21, only about 87.2 per cent of the budgeted amount for school education, and 83.4 per cent of funds for higher education in the Central budget could be spent, very likely due to the combined effect of a revenue squeeze and inability to execute projects in a pandemic.
Irrespective of the reasons, non-utilisation of last year’s budget and reduction in the education budget in the current fiscal was disappointing. More so because implementation of the new education policy requires a resource thrust. State budgets account for more than 85 per cent of public expenditure on schooling, and about two-thirds of that for higher education, and hence have a significant impact on the education sector.
For FY 2020-21 in Karnataka, at Rs 28,587 crore, the education budget is approximately 11.6 per cent of the total budget expenditure.
Last year’s budget utilisation for school education is 96.5 per cent, and that for higher education is 99.2 per cent. Compared to last year’s budget, there is a nominal increase of 3.3 per cent in the allocation for school education, and 3 per cent reduction for higher education. After accounting for inflation, both these budgets are less than those of last year in real terms. Thus, Karnataka’s education budget repeats the pattern of reduced budget allocations, even if the reductions are not significant.
This reduction will constrain the expansion of the education system and avenues to respond to the challenges of rebooting the education system after a difficult pandemic year. The education-related announcements in the budget speech are important pilot projects, but do not signal a substantive shift in the access or quality of education for most students.
The allocation of Samagra Siksha, the flagship programme for access and quality improvement of school education, has seen a budget cut this year. Most of the reduction in the higher education budget is the result of a cut in grant-in-aid for salaries to various universities, likely from a reduction in sanctioned teaching positions.
Further, minimal budget allocations for planning and implementation of the new education policy, other than organising workshops for education staff in the budget speech, will impact the readiness of the education department to implement the new education policy. One can see the situation as a glass half-full, of the state making its best effort in a difficult situation. However, in objective terms, this may not be a great year fiscally for public education in Karnataka.