Union Budget 2016: 10 public & 10 private institutes to be made world-class

Finance Minister Arun Jaitley commenced his Parliament speech by counting education as of the crucial nine pillars of Union Budget 2016. “Education, Skills and Job Creation: to make India a knowledge based and productive society,” said the FM.

However, as the Budget 2016 progressed, there weren’t too many reasons to smile for the higher education sector.

First, let’s take a quick look at the main highlights of education-related announcements in Union Budget 2016:

1. 10 public and 10 private educational institutions to be made world-class
2. Rs 1000 cr set aside for higher education financing
3. 62 new Navodaya Vidyalayas will be opened over the next two years under Sarva Shiksha Abhiyan
4. Proposal to establish a Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets, on the pattern of a Securities Depository
5. Entrepreneurship education and training will be provided in 2200 colleges, 300 schools, 500 government ITIs and 50 vocational training centres through Massive Open Online Courses
6. 1500 multi-skill training institutes to be set up across the country under “Skill India” mission. 

“It is our commitment to empower Higher Educational Institutions to help them become world class teaching and research institutions. An enabling regulatory architecture will be provided to ten public and ten private institutions to emerge as world-class Teaching and Research Institutions. This will enhance affordable access to high quality education for ordinary Indians. A detailed scheme will be formulated,” said Jaitley.

Elaborating the second point, the FM said that the government will set up a Higher Education Finance Agency (HEFA) to help finance studies in Indian educational institutes, for which a sum of Rs 1000 crore has been set aside. This will be a non-profit agency, which will look at donations and Corporate Social Responsibility (CSR) funds that can be directed towards higher education institutions. It will also leverage funds from the market.

The FM also announced the launch of National Board for Skill Development Certification in partnership with the industry and academia.

Speaking on the budget, XLRI- Xavier School of Management Director Fr. E. Abraham S.J. said, "We are delighted that the government has taken a decision to empower Higher Educational Institutions to help them become world class teaching and research institutions by seeking to put in place an enabling regulatory architecture so that ten public and ten private institutions may emerge as world-class Teaching and Research Institutions. This move is definitely a step in the right direction. Top-tier, privately managed management education institutions have been adversely impacted in recent times as a consequence of the prevailing, differentiated, non-level playing ground policy framework vis-a-vis government-funded IIMs."

He further added, "We also welcome the decision to set up a Higher Education Financing Agency (HEFA) with an initial capital base of Rs.1,000 crores. Currently, Top-tier, privately managed management educations have to finance all capital expenditure like campus expansion, classrooms up gradation etc. through internal accruals. On the other hand, government-funded IIMs are extended financial support by the government for various capital expenditure initiatives."

 

XLRI- Xavier School of Management