Union Budget 2024 Highlights: Education and Skilling Sector
Table of Contents
- jaro education
- 25, July 2024
- 7:30 pm
Finance Minister Nirmala Sitharaman presented the Union Budget 2024 on July 23. This budget is the first for the Modi 3.0 government. Everyone’s watching to see what the government is planning and what budget 2024 highlights for the upcoming financial year.
In education, there’s a lot of interest in how much of the GDP will be allocated, especially as the country aims for digital literacy with the ‘Viksit Bharat’ initiative. Industry experts are calling for more investment in education to help India become a developed nation by 2047, as envisioned by Prime Minister Modi. They are suggesting measures like GST exemptions, fair access to quality education, more investment in talent development, and improved digital infrastructure. In this article, you will get a deeper insight into the Union Budget 2024 highlights and how it will help the education and skill sector.
*taxscan.in
Overall Budget Allocation to Education and Skilling Sector
Finance Minister Nirmala Sitharaman announced that the Central government will allocate Rs 1.48 lakh crore for education, employment, and skill development in the 2024-25 financial year. Students pursuing higher education in India will get financial support with loans up to Rs 10 lakh. A new scheme will be launched to train about 20 lakh youth over five years in partnership with state governments and industries.
Moreover, 1,000 ITIs will be upgraded, with courses designed to match industry needs, which was one of the most encouraging Budget 2024 highlights for the educational and skilling sector.
The Finance Minister also announced that the government will offer internships to one crore youth, each receiving a stipend of Rs 5,000 and a one-time assistance of Rs 6,000. Companies will fund these internships through their CSR initiatives.
In the February 2024 Union Budget, Sitharaman noted that higher educational institutions and women enrolling in STEM courses have increased over the past decade. She credited the National Education Policy (NEP) 2020 for this growth.
However, funding for the University Grants Commission (UGC) was significantly reduced by 60.99% to Rs 2,500 crore from the previous year’s revised estimate of Rs 6,409 crore. On the other hand, central universities received an increase in grants by over Rs 4,000 crore, with Rs 15,928 crore allocated for the 2024-25 financial year.
Budget 2024 Highlights for Education and Skill
Financial Support for Student Loans
As per Budget 2024 highlights, the government will provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions. She mentioned that about 1 lakh students will benefit each year from this support. Students will receive direct e-vouchers with a 3% interest subsidy on the loan amount.
Benefits:
- These initiatives will help India become a technology hub by providing a steady flow of trained professionals.
- The focus on promoting employment and upskilling will benefit not only the EdTech industry but also sectors like IT.
- Supporting the middle class through these measures is a smart policy that will drive long-term success.
- These steps will position India as a leader in key sectors.
1,000 ITIs in the Hub-and-Spoke Model
Introducing several initiatives to advance the skill development sector was the key budget 2024 highlight. These initiatives involve upgrading 1,000 Industrial Training Institutes (ITIs) into a hub-and-spoke model, modernizing course content to align with industry skill needs, and revising the skill loan scheme.
The Union Finance Minister also declared that the updated skill loan scheme will now provide loans up to Rs. 7.5 lakh, supported by a government-promoted fund. This revision is anticipated to benefit 25,000 students each year.
Benefits:
- This is a significant advantage for individuals pursuing vocational careers.
- Facilitates the development of practical skills and professional excellence.
- Attracts more youth to participate in the formal economy.
- Reduces the necessity for migration to urban areas by establishing manufacturing bases in or near districts.
- Promotes hyper-local job creation.
- Enhances the manufacturing sector.
- Kunal Vasudeva, Co-Founder and Managing Director Indian School of Hospitality, commented that it will contribute to India’s goal of becoming a $10 trillion economy within the next 7-10 years.
Three Scheme for Employment Linked Incentives
The gove