Union Budget 2023: Management institutes give mixed reaction to 8% increase in education budget

Union Budget 2023 also highlighted some key initiatives such as fund allocation for Eklavya Schools, provision of books in local languages, 100 labs for developing apps using 5G services in engineering institutes and more.

Union Budget 2023: INR 300 crore allocation to IIMs is receiving mixed responses from all over the management industry. Union finance minister Nirmala Sitharaman presented the Budget 2023 in Parliament today, i.e. February 2023. This year, the Ministry of Finance has slashed the funding for IIMs by 50 percent. Last year, the budget recorded an approximate increase of 37 per cent as compared to 2021-22 financial year’s INR 476 crore. Budget 2022 allotted INR 653.92 crore to IIMs. However, that is not the case this year.

With the allotment of over INR 112899.47 crore to the two departments of the education ministry, the budgetary allocation witnessed an increase of INR 8,621.75 crore. Union Budget 2023 also highlighted some key initiatives such as fund allocation for Eklavya Schools, provision of books in local languages, 100 labs for developing apps using 5G services in engineering institutes and more.

Let us take a look at how experts from the management industry reacting to the Union Budget 2023:

A pragmatic budget and not a populist budget

Dr Harivansh Chaturvedi, Director, BIMTECH, Greater Noida said, “The Budget 2023 focuses on seven priorities, which the Finance Minister called the “Saptrishis guiding us through Amrit Kaal”. It’s actually the blueprint for India@100 as the focus on capital expenditure continues and further push towards increased infrastructure.  FM Nirmala Sitharaman hikes capital investment outlay by 33% to Rs 10 lakh crore for 2023-24. Fiscal deficit target has been set at 5.9% of GDP for FY24. The government has proposed customs duty exemptions on import of capital goods and machinery required for lithium-ion batteries. A move in the right direction for faster adoption of E vehicles.

All eyes were on the Education sector, which was allocated a record INR 1,04,277.72 crore for the 2022-23 financial year. So, this budget did not disappoint us. There were slew of provisions for the education sector. Budget 2023 aims to give a push to job creation through proposals such as Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0 and setting up of 30 Skill India international centres that would encourage expansion in businesses and industry, thus leading to more jobs. Skill India Digital Platform for enabling demand based formal skilling, linking with employers including MSMEs and facilitating access to entrepreneurship scheme is a welcome move. The objective of this Skill Certification Scheme is to enable a large number of Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood. Individuals with prior learning experience or skills will also be assessed and certified under Recognition of Prior Learning (RPL).

 A National Digital Library for children and adolescents will be set up for facilitating quality books across geographies, languages, genres and levels to address learning loss incurred during the pandemic years. Setting up National Digital Library and Physical Libraries at ward and panchayat levels is like a dream come true.

It is probably the first time when the union budget witnessed mention of teacher training, capacity-building programs and a culture of reading. The establishment of District Training Centres for educators will revolutionize both public and private school education across India. The district institutes of education and training will be developed into vibrant institutes of excellence for this purpose."

8% increase in allocation to education sector not sufficient

Professor Arvind Chaturvedi (Pro Vice Chancellor, IILM University, Gurugram) said, “An 8% increase in allocation to education sector (over 2022-23) is not sufficient. Higher allocation was expected this year.

Educationists were expecting a larger increase to meet the NEP target of 6% of GDP. In that sense it is disappointing. However, the focus of FM budget proposals has been on IT education and skill development, which is welcome.

The highlights which India should appreciate are:

Target of training 47 lakh youths in 3 years under PMKVY 4.0,national apprentice Scheme, on the job training in partnership with industry in coding /IOT/Drones/ Mechatronics/AI is indeed welcome as it will create a huge technically qualified manpower and India will be an IT super power. 5G centres in 100 engineering colleges is appreciated.

Opening of libraries, both digital and physical, in rural areas will go a long way in increasing the literacy levels as well as enrolment ratio in rural India.

Budget focus on primary teachers training, recruitment of 38000 teacher for Eklavya schools, opening of 157 nursing colleges along with existing medical colleges is appreciated as a step in right direction.

I specially welcome plan to convert DIETs (District Institutes of Education & Training) into vibrant institutes of excellence.

India now has more private universities than the state & central universities and therefore liberal grants should have been announced for private education providers in higher education sector. In a related sector, the announcement of National Data Governance is a welcome step.”

Budget complementing the Economic Survey

Dr VP Singh, Professor of Economics, Great Lakes Institute of Management, Gurgaon said, "It’s a delight to see the budget complementing the Economic Survey so very well. It displays an orderly thinking process in the government. The survey showed India reaching the recovery phase of the credit growth cycle; private consumption was rising reaching its highest since 2015; Gross Non-performing Assets ratio of banks declining substantially; and consumer confidence rising. This is the right time to give more money in hands of people and that is what the FM has done. The standard deduction has been significantly increased from Rs 5 lakhs to Rs 7 lakhs. Incomes and consumption will witness a quantum jump due to the Capex increase of 33% on top of the 35% increase seen in the last year. The budget has embraced green growth as well as smart growth as it emphasises on initiatives through Artificial Intelligence and other technological improvements. Quick conflict resolution is key to business success. The initiatives under VIVAAD se VISHWAS are much appreciated given the global shocks experienced by our producers, particularly the MSME sector. In the pursuit of enhancing ease of doing business more than 39,000 compliances have been reduced and more than 3,400 legal provisions have been decriminalized. The FM proposed to decriminalise section 276A of the Income Tax Act also. The economic reforms undertaken in past few years couldn’t yield desired outcomes due to the pandemic; Ukraine war and then high global inflation. Given the easing of the situation, India will now reap the benefits of the reforms and the spending appetite created by the budget.This budget will play a crucial role in India becoming a $10 trillion ahead of 2035."

Budget 2023 is in the right direction for education sector

Dr Meena Chintamaneni, Pro Vice Chancellor, SVKM's NMIMS Deemed-to-be University said, "The Union Budget 2023 is a step in the right direction for the education sector in India. The focus on bridging the learning loss gap and providing access to quality books through a national digital library is commendable. The allocation of resources towards revisioning teacher training, establishing new nursing colleges, and skill development centers will play a crucial role in preparing the future workforce. The emphasis on industry partnership, research in AI and innovation, and the establishment of Centres of Excellence for AI in leading educational institutions will propel India towards becoming a leader in the field. This budget demonstrates the government's commitment to investing in education and nurturing the growth of a skilled and competent workforce."

Read More:

• Union Budget 2023: Schools education gets INR 68804.85 crore; 38,800 teachers for Eklavya schools