Union Budget 2010 – 11 in Education
April 2010

Union Budget 2010 – 11 in Education

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Plan allocation for elementary education increased by 16% from INR 26,800 crore in 2009-10 to INR 31,036 crore in 2010-11. In addition, States will have access to INR 3,675 crore for elementary education under the XIIIth Finance Commission grants for 2010-11.

The education sector is considered as the virtual base of the country's economic and social developmental agenda. India is known for its intellectual capital worldwide, a lot remains to be done though.

The excerpt from the speech by Pranab Mukherjee, Minister of Finance, during the presentation of the Union Budget, 2010-11:

“Madam Speaker, I rise to present the Budget for 2010-11….. For the UPA Government, inclusive development is an act of faith. In the last five years, our Government has created entitlements backed by legal guarantees for an individual's right to information and her right to work. This has been followed-up with the enactment of the right to education in 2009-10….. To fulfil these commitments the spending on social sector has been gradually increased to INR1,37,674 crore which now stands at 37 per cent of the total plan outlay in 2010-11. Another 25 per cent of the plan allocations are devoted to the development of rural infrastructure. With growth and the opportunities that it generates, we hope to further strengthen the process of inclusive development.

The Right of Children to Free and Compulsory Education Act, 2009 creates a framework for legal entitlements for all children in the age group of 6 to 14 years to education of good quality, based on principles of equity and non-discrimination. In recent years, Sarva Shiksha Abhiyan (SSA) has made significant contribution in improving enrolment and infrastructure for elementary education. About 98 per cent of habitations are now covered by primary schools. I propose to increase the plan allocation for school education from INR 26,800 crore in 2009-10 to INR 31,036 crore in 2010-11. In addition, States will have access to INR 3,675 crore for elementary education under the Thirteenth Finance Commission grants for 2010-11.”

In order to support the developmental measures in the economy, adequate investment in training, skill development and education in the larger economy was necessary and need of the hour as indicated by the experts.

The Budget announced a major allocation with an increment of INR 31,036 crore in the current fiscal year against the previous year's allocation of INR 26,800 crore for elementary education which is a INR 4,236 crore or 16% increase from the 2009-10 fiscal. In addition to this, the states' access to a grant of INR 3,675 crore in the current year for basic education will ensure states' responsibility of the 65:35 Centre-State funding arrangement dedicated to the Right To Education (RTE).

National Skill Development Corporation has approved three projects worth about INR 45 crore to create 10 lakh skilled manpower at the rate of one lakh per annum.

An extensive skill development programme in the textile and garment sector to be launched by leveraging the strength of existing institutions and instruments of the Textile Ministry to train 30 lakh persons over 5 years.

The spending on social sector has been gradually increased to INR 1,37,674 crore in 2010-11, which is 37% of the total plan outlay in 2010-11.

Another 25 per cent of the plan allocations are devoted to the development of rural infrastructure.

Allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme stepped up to INR 40,100 crore in 2010-11. However, there is no specific mention of the Higher Education allocations this year, though.

Union Budget 2009-10 announced the provision for the scheme 'Mission in Education through ICT' substantially increased to INR 900 crore and the provision for setting up and up-gradation of Polytechnics under the Skill Development Mission enhanced to INR 495 crore. INR 827 crore allocated for opening one Central University in each uncovered State. INR 2,113 crore allocated for IITs and NITs which includes a provision of INR 450 crore for new IITs and NITs. The overall Plan budget for higher education was to be increased by INR 2,000 crore over Interim B.E. 2009-10.

Impact on education sector

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