Budget 2019-20 for Education Sector; know the key points

NEW DELHI, FEBRUARY 2: There are no major announcements for the education sector in the Fiscal budget for 2019-20. The total allocation for education sector has been increased from Rs.83,626 crores (revised budget estimates for 2018-19) to Rs. 93,848 crores during 2019-20. Key highlights are given below:

1. Ministry of Human Resources Development has been allocated budget of Rs. 93,848 crore for the year 2019-20 as against original estimates of Rs. 85,010 crore and revised budget estimates of Rs. 83,626 crores for the year 2018-19 showing an increase of 12% over revised estimates of 2018-19.
2. This amount includes allocation of Rs. 56,387 crores towards Department of School Education and Literacy and Rs. 37,461 crores towards Department of Higher Education.
3. The total allocation for education sector is 37% of total budgeted expenditure for 2019-20 as compared to 3.40% (revised estimates for 2018-19) and 3.48% (original estimates for 2018-19).
4. During 2018-19, actual amount spent towards higher education was Rs.33,512 crores as against budgeted estimates of Rs.35,010 crores which shows that the actual amount spent for the year 2018-19 is lower than the amount spent during 2017-18.
5. Budget allocation to National Education Mission is increased by 18% to Rs. 36,472 crores from Rs. 30,833 crores as per revised estimates for 2018-19.
6. Finance Minister has announced that the 22^nd AIIMS will be set up in Haryana.
7. ‘World class Institutions’ Project got an allocation of Rs. 400 crores for the year 2019-20 as against revised estimates of Rs. 129 crores and original estimates of Rs. 250 crores during 2018-19
8. Allocation for Higher Education Financing Agency (HEFA) has been reduced to Rs. 2,100 crores from Rs. 2,750 crores in 2018-19
9. With regard to reservation for economically weaker sections (EWS), the Finance Minister, in his speech mentioned “The Government while maintaining the existing reservation for SC/ST/Other backward classes, have now ensured 10% reservation in educational institutions and Government services for poors. In these institutions, around 25% extra seats (approximately 2 lakh) will be provided so that, there is no shortfall of presently available / reserved seats for any class’. However, there is no mention about this in the budgetary allocation.

The budgetary allocations, net of recoveries, are given below: 
                                                                                                                                    (Rs. Crore)

 

Budgetary allocation based on developmental heads                                                                                                                                                                                                                                                        (Rs. Crore)

 

Notes:

1. Allocation for Central sector schemes for the year 2019-20 is much lower than the previous year mainly on account of reduction in allocation to ‘National Scheme for Incentive for Girl Child for Secondary Education’ which was reduced from Rs. 256 crores to Rs. 100 crores in the current year
2. Centrally Sponsored schemes include National Education mission and National program of mid- day meals in schools.
3. Out of Central sectors schemes / projects for higher education, ‘Technical Education Quality Improvement Program’ has received highest increase in allocation up to Rs. 950 crores during 2019-20 from Rs. 500 crores as per revised estimates of 2018-19.
4. Allocation to UGC was reduced to Rs. 4,601 crores (from Rs. 4,687 crore) and allocation to central universities (excluding interest and repayment of HEFA loan of Rs. 154 crore) was reduced from Rs. 6,499 crores to Rs. 6,450 crores while allocation to AICTE was marginally increased from Rs.452 crores to Rs. 466 crores.
5. Capital outlay mainly includes allocation to Higher Education Financing Agency and the allocation towards this project was reduced to Rs.2,100 crores during 2019-20 from revised budgetary allocation of Rs.2,750 crore during 2018-19.