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LATEST NEWS UPDATES | Budget 2012-13: Education Highlights

Budget 2012-13: Education Highlights

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published Published on Mar 19, 2012   modified Modified on Mar 19, 2012
-The Times of India

Many feel the Budget is positive for the education sector, with good amounts allocated to higher education and school education exempted from service tax

Pranab Mukherjee, finance minister, presented the Union Budget for the year 2012-13 on Friday, with reference to the state of the global economy and its impact on India. The Budget seems positive for the education sector, with good amounts allocated to higher education and school education exempted from service tax.

Right to Education (RTE)-Sarva Shiksha Abhiyan (SSA) received Rs 25, 555 crore allocation, showing an increase of 21.7%; while a 29% increase for Rashtriya Madhyamik Shiksha Abhiyan making it Rs 3,124 crore.

As proposed, 6000 schools will be set up at block level as model schools in the 12th Five Year Plan. Besides, a Credit Guarantee Fund announced to be set up for better flow of credit to students.

In his Budget speech, the finance minister said: "In the 12th Plan, 6,000 schools have been proposed to be set-up at block level as model schools to benchmark excellence. Of these, 2,500 will be set up under public-private-partnership (PPP)."

An allocation of Rs 15, 850 crore was made for Integrated Child Development Services (ICDS) scheme, an increase of 58% and Rs 11, 937 crore for National Programme of Mid-Day Meals in schools for the year 2012-13. Also, an allocation of Rs 750 crore was proposed for Rajiv GandhiScheme for Empowerment of Adolescent Girls, SABLA.

Meanwhile, as a welcome move, the Budget has allocated Rs 1000 crore for National Skill Development Fund.

B Muthuraman, president, Confederation of Indian Industry (CII), in his response to the Budget for the education sector, said, "We are not too unhappy with the Budget. It is a positive Budget in terms of the focus and allocations made to higher education and the skill development programme."

Dilip Chenoy, CEO and MD, National Skills Development Corporation (NSDC), too feels the Budget has come out positive for the education sector.

"It is a rather positive budget as enhanced allocations have been made to the higher education, skills and vocational training. Besides it is a welcome move that school education has been exempted from service tax. Besides, the focus given on specific points such as the mid-day meals and the RTE makes it seem rather good," he added.

However, from the academic sector, E Abraham, director, XLRI School of Business & Human Resources, Jamshedpur, in response to the Budget said, it is a good move to increase the allocation to RTE - SSA by 21.7 % to Rs.25, 555 crore and by 29 % for Rashtriya Madhyamik Shiksha Abhiyan to Rs 3,124 crore. However, a regulatory body to ensure Right to Education is fully implemented in letter and spirit is an institutional gap that has to be plugged at the earliest.

According to him, the Credit Guarantee Fund to ensure better flow of funds to students is also a welcome move. However, the government must ensure that deserving students and parents are aware of such a fund. It is likely that there will be restricted disbursement of funds because of low levels of awareness about it. Government must link grants to desired outcomes and not dole out grants without any guidelines or desired outcomes.

The Times of India, 17 March, 2012, http://articles.timesofindia.indiatimes.com/2012-03-17/news/31204564_1_education-sector-higher-education-allocation


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