Budget 2024: Experts push for higher allocation for education, reduction in GST for digital services

NEW DELHI: The Union finance minister Nirmala Sitharaman is expected to present her seventh consecutive Budget in the third week of July. With the ongoing controversy related to NEET, UGC NET exam 2024 paper leak and other irregularities, academics continue to expect 6% of Gross Domestic Product (GDP) allocation to the public education system.

This year, an interim-budget 2024 was presented in February due to the Lok Sabha elections. The finance minister highlighted that 43% female enrolment in STEM courses is one of the highest in the world. She also proposed plans to establish more medical colleges by utilizing existing hospital infrastructure.

A total outlay of school and higher education for the financial year 2024-25 is Rs 1,20,627.87 crore, a 6.84% increase compared to previous year’s education budget. The budget allocation of higher education and for department of school education and literacy have also been increased compared to last financial year.

6% of GDP on education

Kanak Gupta, group director of Seth MR Jaipuria Schools, said: “I’ve always maintained it that it would take a very brave initiator to plan and spend the allocated 6% of GDP on education as per the previous years’ budgets. The Union budget should be a roadmap that propels education towards endless possibilities of socio-economic progress. The last few years, the spend on education has been oscillating between 2.5% - 3% and it would be encouraging to see allocation towards education be upped to the more optimal 6% and beyond.”

On 6% of GDP on education, he said: “That essentially means that we as a country must be prepared to spend upwards of the previously allocated ~INR 132,000 crore on education by encouraging the setting up of new institutions, especially K-12 Schools.”

He also highlighted the need to encourage collaboration between academia, industry, and research institutions that can foster an ecosystem that supports cutting-edge research.

Also read Budget 2024: Why we still talk about education needing 6% of GDP

PwD students, teacher training

As of 2023, approximately 29% of children with disabilities in India were not enrolled in schools; research also indicates one in 68 students in India having certain learning challenges. I am expecting focus on the same as well.

“I am expecting massive impetus on comprehensive teacher training programs, continuous professional development, and innovative teaching methodologies

towards unlocking the potential of our educators. The budget should be a catalyst, allocating funds for research grants, fellowships, and the establishment of research centres,” he said.

Also read Budget 2024: Fund cuts, scholarships; a recap of budget 2023, impact on universities

Reduction of GST on digital services

Sumit Singhal, subject matter expert, SN Dhawan and CO LLP said: “The government should focus on increasing the education budget beyond 13% as it would provide continuous support for educational initiatives and further strengthen the educational framework. Such an increase would allow for more robust funding of critical programs, infrastructure development, and technological integration in schools and higher education institutions.

Singhal also urged the government to focus on “reduction in Goods and Services Tax (GST) rates on digital educational content and services. Lowering these rates would significantly enhance the affordability of online learning, which has become increasingly vital in today’s digital age. This measure would be advantageous for students by making high-quality educational resources more accessible and for edtech companies by fostering a more conducive environment for innovation and growth”.