The Union government on Tuesday, July 23, allocated Rs 125,638 crores for the education sector for the financial year 2024-25, up by Rs 12,739 crore (11.3%) when compared to 2023-24. Of the total amount, Rs 47,619.77 crore is allocated to the Department of Higher Education while Rs 73,498.10 crore is allocated to the Department of School Education and Literacy.
Further, for education, employment and skilling combined, the union government has estimated to spend Rs 1.48 lakh crore.
Finance Minister Nirmala Sitharaman announced new initiatives for students including a new financial support scheme. For students who have not benefited by government’s policies and schemes, the government is to offer loans upto Rs 10 lakh for higher education in domestic institutions. “E-vouchers for this purpose will be given directly to one lakh students every year for annual interest subvention of 3 percent of the loan amount,” she announced.
The government is also set to launch a scheme to provide paid internships in the top 500 companies. The said scheme will benefit 500 crore youth over a span of five years, who will receive Rs 5,000 per month as an allowance and a one-time assistance of Rs 6,000, the Minister said.
The Minister also announced that 20 lakh youth will be provided skill through 1,000 Industrial Training Institutes (ITIs). The courses will be designed to meet the needs of the industries, she said.
It may be noted that the Union government, in the interim budget, had slashed the University Grants Commission’s (UGC) allocation by 61%. The allocations were reduced from Rs. 6,409 crore in 2023-24’s revised estimates to Rs. 2,500 crore in 2024-25’s interim budget’s estimates. The reduction continues to stand in the Union budget.
Similarly, the cut down in support for Indian Institutes of Management (IIMs) also continues to stand. From Rs 331.01 crores, the allocation has been reduced to Rs 212.21 crores.
Meanwhile, the allocation of funds towards research and innovation in higher education has improved from Rs 193.39 crores to Rs 355 crores.