Budget 2021: The Finance Minister, Nirmala Sitharaman, presented the budget today. The Union Budget was tabled in Lok Sabha today. Check where and when to watch, and lastest updates here.
Anu Parthiban | February 1, 2021 | 06:46 PM IST
NEW DELHI: Union Finance Minister Nirmala Sitharaman presented Budget 2021 in the Parliament. This budget is significant as it is expected to revive the economy reeling under the COVID-19 crisis. Almost all the sectors were adversely affected due to COVID-19 pandemic. Of all, perhaps the education sector faced major challenges. Schools and colleges have largely remained shut since March 24, 2020, due to the COVID-19 outbreak.
The finance minister said, "More than 15,000 schools will be qualitatively strengthened, 100 new Sainik schools to be set up in partnership with NGOs and private schools, legislation for umbrella body of higher education, central university in Leh."
For the 2020-21 financial year, the total budget estimate for the ministry of education was Rs 99,300 crore, including both higher and lower education. This represented an increase of just 4.96% over the previous year’s budget for allocation - the smallest increase in five years.
This year, the finance minister will read out the Budget 2021-22 at the Parliament through a tab to avoid COVID-19 infection. Check Union Budget 2021 live updates for the education sector here.
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The student body expressed concerns about no announcements on the eradication of the education gap between students living in urban and rural areas. Students’ groups conveyed their disapproval and alleged that the budget 2021 is for “blatantly shifting” from the “idea of the welfare state”.
READ full story here | Union Budget 2021: ‘Anything for students and youth of this country?’
The budget for centrally-run medical colleges has increased very marginally over the current financial year’s budget estimates.
READ | Union Budget 2021: Small increase in funds for central medical colleges
Commenting on the decrease in the allocation for Samagra Shiksha Abhiyan, Academics said that the government is stepping away from strengthening the public education system and is encouraging privatisation. The activists also argued that this will increase the student dropout rates during the COVID-19 pandemic.
READ full story here | Centre is paving way for privatisation: Activists on Budget 2021
Amit Gainda, Chief Executive Officer, Avanse Financial Services said: "Government’s collaboration with UAE to benchmark skill qualifications, assessment and certification and the implementation of a collaborative training programme with Japanese will up-skill our youth and provide vocational and industrial skills along with proper techniques and knowledge. The amendment of the Apprenticeship Act to improve the opportunities for the youngsters of our country will build the necessary confidence in them and assist them to be future-ready. These initiatives combined with the proposed regulatory mechanism for collaborations with foreign higher education institutes will enable students to develop global skills and prepare them for a bright career."
"By setting up 750 Eklavya residential school in tribal areas, the minister has allowed for the upliftment of students under the SC & ST section. From Proposing the foundation of a Central University in Leh to a Higher Education Commission for accreditation and regular funding of Colleges and Universities, the budget has proved to be a boon for academia this fiscal year. Going big on funding and budgetary allocations, it will be interesting to inculcate a stronger sense of schooling in students across all sections of the economy. It is of great pride to see the research ecosystem being adhered to as well,” Co-founder of The Kautilya School of Public Policy
Welcoming the 9% higher allocation to the Ministry of Education over the revised 2020-21 estimate, and a doubling of the budgets for Digital e-Learning, AK Srikanth, CEO, KLAY Preschool & Day-care said, "The budget has touched upon the much-anticipated implementation of The National Education Policy with a mentoring model where 15,000 schools will be strengthened initially and in turn work with other schools to follow suit. Bringing in the changes proposed in the policy in this systematic manner would definitely bring in more emphasis and structure in the Early Childhood Care and Education system in India. "
However, the education industry as a whole and specifically the pre- primary sector was looking forward to the allocation of funds toward managing the safety of bringing younger children back to schools, which has not been taken into consideration, he added.
Addressing the initiatives for higher education in budget 2021, Preethaa Ganesh, Vice President, Vels Group of Institutions said, "Enhancing online education by introducing a full-fledged education programmes will majorly benefit the students of deprived section of the society. Increase in apprenticeship embedded degree/diploma courses by March 2021 will result in providing more internship opportunities to fresh engineers thereby creating a wholesome job environment. In addition to this, we feel that the sum allocated for skill development and training of teachers will give us room to create a better work environment and deliver higher quality of education.”
Uttar Pradesh Deputy Chief Minister Dinesh Sharma halied the Union Budget, saying it aimed at a self-reliant India with the higher education sector set to get a boost. "The Union Budget is a budget of a self-reliant India (Aatma Nirbhar Bharat). Under the leadership of Prime Minister Narendra Modi, India will show the way to the world. The Budget will strengthen the economy and India will become a USD 5 trillion economy," PTI reported him as saying.
Commenting on the Budget 2021-22 Professor V Ramgopal Rao, Director, IIT Delhi said: " Happy to see fund allocation for National Research Foundation as per the NEP provisions. NRF will help boost the research ecosystem in the country and will connect R&D happening in the country with societal problems. This will make the R&D happening in our higher educational institutions visible to society."
He also said he welcomes the Glue Grants proposed in the budget is a welcome step. "I am happy to see a push in the budget for inter-institutional linkages and for the formation of City-based R&D clusters, he added.
Emphasising that the budgetary allocation will give the needed boost to the government's drive to promote higher education, Abhay Karandikar, Director IIT Kanpur said: "The initiatives gives a clear intent of timely execution of the National Education Policy announced in 2020. The allocation of Rs 50,000 crore in the research & development sector in the next 5 years is an indication of India heading in its endeavour towards becoming a global tech-infused innovation hub- an important step towards 'Atmanirbhar Bharat'. The allocation of Rs 8,000 crore for National Mission on Quantum Computing and Technology will help in establishing our strength in this upcoming technology of the future."
He further said that the thrust on training and skill will help explore the untapped potential amongst the Indian youth, boosting their employability quotient.
“This year’s Union Budget was in the spirit of 'do no harm' in terms of any adverse policies being implemented. Broadly, the various decisions laid out in this year's budget are more "incremental" rather than "transformational" in nature," Rishab Mehta, CEO and Founder, GrayQuest said.
"Accessibility and affordability of education across the weaker economic strata of society have been a perennial challenge in our country, especially this year with the disparity increasing manifold due to lack of online education infrastructure both at school and student level." However, he said that the budget has indicated a good intention of progress in addressing this gap.
“The Government’s decision to allocate Rs.50,000 crores over 5 years will serve as a great shot in the arm for the country’s research ecosystem. Lack of adequate funding has been a constraint for several higher education institutions and this support will enable the institutions and the faculty to produce high quality, rigorous research output,” Dishan Kamdar, Vice Chancellor, FLAME University said.
On the creation of the Higher Education Commission of India (HECI), he said, “As an umbrella structure having four separate bodies for standard-setting, accreditation, regulation, and funding under it will bring in synergies across higher education institutions. In addition, a regulatory mechanism to promote academic collaboration with foreign higher educational institutions will help pave the way for Indian higher education institutions to become truly global in the near future”.
“The education sector has found a prominent place in this year’s Union Budget, given the large scale impact the pandemic has had on it. With an aim to move India towards an Atmanirbhar Bharat, this year the focus is on rolling out the NEP and its elements across schools. The Digital First Mindset will take blended learning further so that students can continue their learning paths. Teacher training and a toy based learning pedagogy will help strengthen the sector and take us ahead on the learning curve,” says Prajodh Rajan, Co-Founder & Group CEO, EuroKids International.
On the announcement to amend the Apprenticeship Act to improve apprenticeship opportunities for our youth, Education Minister Ramesh Pokhriyal said, "The current National Apprenticeship Training Scheme will be realigned for providing post-education apprenticeship, training of graduates and diploma holders in engineering. Over 3,000 crores to be allotted for this."
The minister also said that the Budget 2021 allocation "will help implement NEP 2020 successfully".
Big boost to #education sector: Allocation of KVS has increased by Rs 362.32 crore and allocation of NVS increased to Rs. 320 crore w.r.t. RE 2020-21. The budget allocation of NCERT increased to Rs.110.08 crore from RE 2020-21.#AatmanirbharBharatKaBudget
— Dr. Ramesh Pokhriyal Nishank (@DrRPNishank) February 1, 2021
“If you look at the budget allocation for this year then the allocation for Samagra Shiksha Abhiyan is less than the actual budget spent on the same scheme in 2019-20. If the allocation for SSA is so small then where will the government find money to spend on strengthening 15,000 schools for the National Education Policy 2020. This is a highly disappointing budget that only helps to usher in privatization,” said Ambarish Rai, national convenor, Right to Education(RTE) Forum.
"The Budget 2021-22 announcements relating to higher education aim to create a brighter future for the ones who are the future of India."
The government renews its focus on reinvigorating the country’s human capital through the Budget 2021-22 announcements on higher education. #AatmanirbharBharatKaBudget (2/2) pic.twitter.com/BuobTO25kw
— NSitharamanOffice (@nsitharamanoffc) February 1, 2021
Union Budget 2021 has given the Centre's ambitious higher education funding reform project just Rs 1 crore.
READ | Union Budget 2021: Centre’s education infra loan project gets just Rs 1 cr
Zishaan Hayth, CEO and Founder, Toppr, told Careers360: "The goal to empower 15,000 schools is really promising. They can further mentor other schools in their region and help achieve NEP goals faster. With the future of education as hybrid, we believe that edtech companies can act as true allies to the government and education ecosystem as a whole. Technological interventions can multiply government investment manifold and accelerate the implementation of NEP goals ie. focus on tracking and improving learning outcomes and holistic progress of students."
The revised estimates for major schemes in Budget 2020-21 is provided below.
School Schemes / Institutions | Budget Estimates 2020-21 (In Rs. Cr) | Revised Estimate 2020-21 (In Rs. Cr) |
Total Budget | 59,845.00 | 52,189 |
Samagra Shiksha Abhiyan | 38,750.50 | 27,957 |
Mid-Day Meal Scheme | 11,000 | 12,900 |
Kendriya Vidyalaya Sangathan | 5,516.50 | 6,437.68 |
Navodaya Vidyalaya Samiti | 3,300 | 3,480 |
Teachers Training, Adult Education | 110 | 120.25 |
National Means cum Merit scholarship | 373 | 350 |
National Scheme for Incentive to Girls | 110 | 1 |
The Samagra Shiksha Abhiyan scheme’s budget was revised down to Rs 27,957 crores as opposed to the Rs 38,750.50 crore allotted to it in Budget 2020-21. However, fund allocation for mid-day meal scheme, Kendriya Vidyalayas and Navodaya Vidyalayas saw an increase in the revised budget estimates for 2020.
READ full report here | Over Rs 10,000 cr cut from SSA in 2020-21 revised budget
Congratulating finance minister Nirmala Sitharaman, Swoyan Satyendu, COO, ODM Educational Group said, "The strategic and deliberate decision to introduce the New Education Policy will further improve the overall state of students across the country. It is also expected that the Finance Minister's decision to promote greater autonomy with focus on universalisation of education from pre-school to secondary level will boost the morale of institutions and encourage them to go above and beyond to deliver a superior result.”
On Budget 2021 for education, former JNUSU president Sai Balaji said, “ Anything for students and youth of this country in Budget2021? Anything on jobs and raising employment opportunities in Budget2021? Anything on increasing the budget on education, scholarships and assistance to students in Budget202? NOTHING!”
Anything for Students and Youth of this country in #Budget2021?
— N Sai Balaji | ఎన్ సాయి బాలాజీ (@nsaibalaji) February 1, 2021
Anything on jobs and raising employment opportunities in #Budget2021?
Anything on increasing budget on education, scholarships and assistance to students in #Budget202?
NOTHING!
Well ONLY Jumla's served as Budget
Major schemes such as Samagra Shiksha Abhiyan have seen funds cut after the 2020-21 revised estimates saw amounts reduced. Union Budget 2021 for school education for the upcoming financial year dropped to Rs 54,873.66 crore, the lowest in two years. Last year the budget allocated to the Department of School Education and Literacy was Rs 59,845 crores.
Read detailed report here | School education budget cut by close to Rs 5,000 crore
Nirmala Sitharaman, during the budget speech, announced a budget outlay of Rs 35, 219 crores for the post-matric scholarship scheme for 4 crore Scheduled Caste students till 2025- 26.
READ MORE | Union Budget 2021: Rs 35, 219 crore outlay for post-matric scholarships
The finance minister, Nirmala Sitharaman, announced that the government will introduce legislation to introduce the Higher Education Commission of India (HECI) this year. The minister also announced that nine cities will have “umbrella structure” for its higher education institutions to allow for better “synergy” between them.
READ full story here | Budget 2021: HECI, ‘umbrella structure’ of institutions in 9 cities
To further boost regional languages, National Language Translation Mission will be set up, says Nirmala Sitharaman.
1.5 lakh jobs for youth to be generated.
#Budget2021
— PIB India (@PIB_India) February 1, 2021
Ship Recycling Capacities of around 4.5 million Light Displacement Tonnage to be doubled by 2024, expected to generate around 1.5 lakh jobs for our youth #AatmanirbharBharatKaBudget
The minister, Nirmala Sitharaman, says: "100 new Sainik schools will be set up in partnership with NGOs, private schools, and states. We would be introducing the legislation this year to implement the setting-up of Higher Education Commission of India."
The Finance Minister, Nirmala Sitharaman announced that 750 Eklavya Model Residential Schools will be set up in tribal areas. The government has increased allocation for the unit cost of each Eklavya school from Rs 20 crores to Rs 38 crore. The budget allocation for schools in hilly areas has been increased to 48 crores for tribal students.
READ full story here | Budget 2021: 15,000 schools to be strengthened for NEP 2020
More than 15,000 schools will be qualitatively strengthened, 100 new Sainik schools to be set up in partnership with NGOs and private schools, legislation for umbrella body of higher education, central university in Leh, says the finance minister.
The finance minister says, "Rs 1.97 lakh crore over 5 years starting this financial year has been allocated for Production Linked Incentive Schemes to create manufacturing global champions for an Aatmanirbhar Bharat. This will nurture size and scale and create jobs for youth." 1.5 lakh jobs will be generated by expanding the ship recycling business.
The pneumococcal vaccine, limited to only five states at present, to be rolled out across the country, which will avert more than 50,000 child deaths annually, informs Finance Minister.
Proposals in Part A will strengthen the Sankalp of NATION FIRST -- 1. Doubling farmers' income 2. Strong Infrastructure 3. Healthy India 4. Good Governance 5. Opportunities for Youth 6. Education for All 7. Women Empowerment, and 8. Inclusive Development and others, says FM Sitharaman.
Urban transport scheme meant to help provide employment to youth. The scheme, plan to add 20,000 buses in urban areas, has been allocated Rs 18,000 crore.
New centrally sponsored scheme PM Aatmanirbhar Swasth Bharat Yojana to be launched, an outlay of ₹ 64,180 crores over 6 years, to develop capacities of health care systems, institutions for detection and cure of new and emerging diseases.
#Budget2021
— PIB India (@PIB_India) February 1, 2021
Main interventions under #PMAatmanirbharSwasthBharatYojana include:
Support for Health and Wellness Centres
Setting up Integrated Public Health labs in all districts
Critical care hospital blocks
Strengthening of NCDC#AatmanirbharBharatKaBudget
Union Finance Minister Nirmala Sitharaman lays down six pillars of Union Budget 2021-22:
Health and Well-Being
Physical and Financial capital and infrastructure
Inclusive Development for Aspirational India
Reinvigorating Human Capital
Innovation and R&D
Minimum Govt., Maximum Governance
To strengthen nutrition, Mission Poshan 2.0 will be launched, says Nirmala Sitharaman. Mission Poshan 2.0 will be formed by merging the supplementary Nutrition Programme with Poshan Abhiyan.
Finance Minister says, “The preparation of this Budget was undertaken in circumstances like never before, in view of calamities that have affected a country or a region within a country.”
Finance Minister Nirmala Sitharaman presents Union Budget 2021-22 now at the Parliament. Watch live here.
#Budget2021 ?LIVE NOW from #Parliament
— PIB India (@PIB_India) February 1, 2021
Presentation of #UnionBudget 2021-22 by Finance Minister @nsitharaman#AatmanirbharBharatKaBudget
YouTube: https://t.co/r06BA3Sz80
Facebook: https://t.co/p9g0J6q6qvhttps://t.co/afbpXH0YaI
Union Finance Minister Nirmala Sitharaman to read out budget 2021-22 soon at the Parliament.
The UN's World Food Programme country director Bishow Parajuli said India offers a shining example through its existing food safety nets and the collaborative response it undertook to try and ensure that the coronavirus-triggered lockdowns did not disrupt the nutrition of the school children. "The involvement of state agencies, civil society organisations and multilateral agencies to avert hunger ensured collaboration, including the creation of a standard operating procedure for procuring, preparing and serving mid-day meals," he told PTI.
Since the Budget 2020, the Centre has also signed a World Bank loan project aimed at reforming school education in six states, Himachal Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, Kerala and Odisha, over five years. Activists and academics had serious misgivings about the education ministry and World Bank’s STARS project.
Finance Minister Nirmala Sitharaman and other officials of the ministry of finance called on President Ram Nath Kovind at Rashtrapathi Bhawan before presenting the Union Budget 2021-22.
Finance Minister @nsitharaman, MoS Finance & Corporate Affairs @ianuragthakur, and senior officials of the Ministry of Finance, called on President Kovind at Rashtrapati Bhavan before presenting the Union Budget 2021-22. pic.twitter.com/FUNptDXnHB
— President of India (@rashtrapatibhvn) February 1, 2021
Finance Minister Nirmala Sitharaman will present the Union Budget 2021-22 at the Parliament in less than an hour. Click here to watch the Budget speech LIVE at 11 AM.
The main goal for school education set by the National Education Policy 2020 is achieving 100% gross enrollment ratio by 2030. This means getting all school-age children enrolled, from pre-primary to Class 12.
The chart shows the percentage increase in allocations to the MHRD each year starting from the 2016-17 financial year. In 2015-16, the allocations had reduced instead of increasing due to devolution.
Union Budget 2021-22 goes digital. The soft copy of the budget will be available online.
#UnionBudget2021 to be the first-ever digital-only Budget@FinMinIndia @PIB_India @airnewsalerts pic.twitter.com/rcZGm2IH7h
— DD News (@DDNewslive) February 1, 2021
RECAP | Take a look at last year’s budget analysis - Budget Analysis: Education outlay up 4.69%, smallest hike in 5 years
The doctors now demand a separate allocation of emergency funds in the upcoming budget and that state institution be equally equipped to handle such emergencies.
As the pandemic swept through the country, government medical colleges found themselves understaffed and ill-equipped, especially state-run medical colleges. The budget allocated to the ministry of health and family welfare was Rs 67,112 crore for the 2020-21 financial year and by November 2020, 74% of that had been released. The allocation, a little higher than 2019-2020 budget’s Rs 64,609 crore, left a wide gap in healthcare that was felt acutely by everyone affected by COVID-19.
READ the full story here | Budget 2021: Medical students, teachers demand emergency fund
A major development since the last budget, the National Education Policy 2020 was passed by the Union Cabinet in July. However, unlike previous policies, this wasn’t tabled or voted on in Parliament. Click here to read the National Education Policy 2020
For the first time, the Union Budget 2021 will be delivered in paperless form. Finance Minister Nirmala Sitharaman will read out budget 2021-22 through a tab to avoid COVID-19 infection.
For the 2020-21 financial year, the total budget estimate for the ministry of education was Rs 99,300, including both higher and lower education. This represented an increase of just 4.96% over the previous year’s budget for allocation -- the smallest increase in five years.
Several public institutions, including some self-financed ones, are expecting the Budget 2021 to earmark funds specifically for the implementation of the NEP 2020. The policy suggested sweeping reform in both higher and school education.
The Union Government raised the per-day, per-child cooking cost of mid-day meals in schools in April 2020. The total annual central allocation was raised from Rs 7,300 crore to Rs 8,100 crore. The outlay for mid-day meals in Union Budget 2020 was Rs. 11,000 crore.
Since the Budget 2020, the Centre has also signed a World Bank loan project aimed at reforming school education in six states, Himachal Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, Kerala and Odisha, over five years. Activists and academics had serious misgivings about the education ministry and World Bank’s STARS project.
Activists and experts fear that the gains made in health and education of children will be lost if the budget for these critical areas shrinks further due to the economic impact of the COVID-19 pandemic. They seek increased allocation to nutrition for children and continued home-delivery of food where schools are yet to reopen.
Finance Minister Nirmala Sitharaman's budget speech will begin at 11 AM today. The Budget speech will also be telecasted LIVE on national television channels such as Lok Sabha TV, Doordarshan, Rajya Sabha TV and Press Information Bureau (PIB). The Union Budget 2021 will also be broadcast on Twitter and YouTube channels of these outlets.
Or, Click here to watch live.
The release of funds achieved by two critical ministries involved in education and health of children was exceptionally low in 2020. By November, the ministry of education’s department of school education and literacy had released just 39% of its budget. In 2019, it had released 57% of the budget over the same period of time. The following analysis was done by the Centre for Budget and Governance Accountability (CBGA), based on government data.
Ministry/Department | Budget 2020-21 (In Rs Crore) | Actuals till November 2020 (In Rs Crore) | % Actuals by November 2020 | % Actuals over same period in 2019 |
Ministry of Health and Family Welfare | 67,112 | 49,858 | 74 | 66 |
Ministry of Women and Child Development | 30,007 | 12,472 | 42 | 60 |
Department of School Education and Literacy (Ministry of Education) | 59,845 | 23,297 | 39 | 57 |
Administrators in higher educational institutions, both public and private, hope to see in Budget 2021 provision for infrastructure for online education. The COVID-19 pandemic forced institutions across the country to teach online and most school systems, colleges, universities and even Indian Institutes of Technology (IIT Bombay, IIT Kanpur) were not prepared.
Finance Minister Nirmala Sitharaman's budget speech will be telecasted LIVE on national television channels such as Lok Sabha TV, Doordarshan, Rajya Sabha TV and Press Information Bureau (PIB). The Union Budget 2021 will also be broadcast on Twitter and YouTube channels of these outlets. You can check the latest updates of Union Budget 2021 for the education here.
Research scholars across institutions but especially the National Institutes of Technology (NITs), faced serious financial strain during the pandemic as their fellowships were delayed or denied. In some cases, students selected for research programmes were later told they had to go elsewhere because the institution could not finance their research.
In 2020, the total allocation to the education ministry was a little over Rs 99,300 crore. This is how that amount was split between higher and school education:
Department of Higher Education: Rs 39,466.52 crore
Department of School Education and Literacy: Rs 59,845.00 crore
However, the ministry of education isn’t the only ministry to fund the sector.
The budget for the current financial year had disappointingly low outlays for schemes specifically targeting Scheduled Castes (SC), Scheduled Tribes (ST) and Other Backward Classes (OBC) students. In December, the Union Cabinet restructured the major post-matric scholarship scheme for students from these communities and approved a budget of Rs 59,000 crore over five years.
An online petition filed by a schoolgirl in Uttar Pradesh seeking an increase in the education budget has received over 70,000 signatures. It was posted last year and updated in this one.
The petition addressed to the education minister Ramesh Pokhriyal ‘Nishank’ and finance minister Nirmala Sitharaman asks the Union Budget allocation for education to be increased to six percent of the GDP, as proposed in the National Education Policy (NEP) 2020.
The Union Budget 2021 will be announced by the finance minister, Nirmala Sitharaman today, on February 1. While the classes remain shut for nearly ten months due to COVID-19 pandemic, the educational institutions started investing in the online learning methods to stay afloat. The centre had allocated 3.1% of the total gross domestic product (GDP) for education in 2019-20, according to the ministry of education.