New Delhi: Union Minister of Finance Nirmala Sitharaman has presented India's union budget 2022-23 in the parliament today, i.e, on February 1, where she allocated INR 1,04, 277 crores for the Education Ministry. This is the first time, over one lakh crore has been allocated to the education sector. 

There was a marginal increase for education in the Union budget 2022 compared to the previous year, which is split into two departments of the education ministry. 

This year, the department of higher education’s budget has increased by over INR 2400 crore to INR 40,828 crore. The finance minister has allocated INR 40,828 for higher education, which was INR 38,350 crore for the academic year 2021-22. 

In contrast, the allocation for Schools education has been increased to INR 63,449 crore, up by INR 8576 crore.

The finance minister announced the setting up of a Digital University and e-content in regional languages in the education budget 2022. 

On Tax Budget 2022, Sitharam proposed that any income from transfer of any virtual digital asset shall be taxed at the rate of 30% and there will be no deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition. 

Union Budget 2022: Allocation to School Education

The school education and literacy department received a total of INR 63449 crore, which is a significant increase compared to the previous year’s allocation of INR 54,873 crore. 

Sitharaman has allocated INR 37,383.36 crore from INR 31,050 crore allocated to the last year. 

The allocation for Prarambhik Shiksha Kosh (PSK) and Madhyamik and Uchchtar Shiksha Kosh (MUSK) has been increased to INR 28,000 crore and INR 5,000 crore respectively.

Union Budget 2022-23: Allocation to Higher Education

The Modi government has allocated INR 40,828 crore for the higher education department of the Ministry of Education.

FM Sitharaman was presenting her fourth budget in the Lok Sabha today that the central government will allow the World-Class Universities to establish campuses in Gift city. The government will bridge the digital divide by creating a digital university. 

The union budget 2022-23 witnessed the ministry allocating INR 104,277.72 crore to the two departments of the education ministry, up by over INR 11,053.72 crore from the 2021-22 budget estimates. 

Union Budget 2022: Key Highlights for Department of School Education & Literacy

Some of the key highlights for the department of school education and literacy are as follows: 

  • One class, one TV channel' program of PM eVIDYA will be expanded from 12 to 200 TV channels. 
  • The expansion will enable all states to provide supplementary education in regional languages for Class 1 to 12. 
  • Formulation and delivery of high-quality e-content in all spoken languages through the internet, mobile phones, television and through radio and digital teachers. 
  • The teachers will set up a competitive mechanism for the development of quality e-content to empower and equip the students with digital tools of teaching and facilitate better learning outcomes.
  • Two lakh Anganwadi will be upgraded
  • Reorientation of skilling programs to skill, upskill & reskill youth. 
  • Digital DESH e-portal will be launched.

The proposed expenditure of the Ministry for 2022-23 for the education sector (Department of school education and Literacy) 

In the union budget 2022-23, the Department of School Education and Literacy has been allocated INR 63449.37 crore, accounting for 60% of the Ministry’s total allocation. 

The Department of Higher Education has been allocated INR 40828.35 crore, accounting for 40% of the Ministry’s total allocation.

Department

2021-22 Actuals

2021-22 RE

2022-23

School Education & Literacy

54,874

51969.99

63449.37

Higher Education

38,351

36031.57

40828.35

Total

93,224

88,001.56

104,277.72

*All figures in crores

Union Budget 2022-23: Major Heads of Expenditure 

Go through the table to know the major heads of expenditure under the Department of School Education and Literacy in 2022-23. 

Expenditure Head

Allocation (All figures in Crore)

Samagra Shiksha 

37383.36

Autonomous Bodies (including Kendriya Vidyalaya Sangathan (KVS) and Navodaya Vidyalaya Samiti (NVS))

12359.00

Total Centrally Sponsored Schemes (including mid-day meals, now known as Pradhan Mantri Poshan Shakti Nirman (PM POSHAN)

50694.11

In the Union Budget Estimates 2022-23, the corpus of Prarambhik Shiksha Kosh (PSK) and Madhyamik and Uchchtar Shiksha Kosh (MUSK) is INR 28,000 crore and INR 5,000 crore respectively, collectively INR 37383.36 crore for Samagra Shiksha. 

However, taking into consideration the previous year, the budget for Samagra Shiksha was INR 31,050 crore. 

Meanwhile, the budget for Prarambhik Shiksha Kosh (PSK) is allocated at INR 10,000 crore in the Scheme of Pradhan Mantri Poshan Shakti Nirman (PM - POSHAN) that was INR 11, 500 crore in the previous year. 

The allocation of budget for Kendriya Vidyalaya Sangathan (KVS) and Navodaya Vidyalaya Samiti (NVS) has been increased to INR 7,650 crore and INR 4,115 crore respectively. 

Last year, the government allocated INR 6800 crore and INR 3800 crore to KVS and NVS respectively.

Union Budget 2022-23: UGC, AICTE, Central Universities 

This year, there has been a moderate increase in funding to regulatory bodies like the UGC and AICTE, as there was no change in fund allocation in the union budget 2021-22. 

The regulatory bodies of higher education, All India Council for Technical Education, AICTE, and University Grants Commission, UGC have been allocated INR 5320 crore, which was only INR 5109 crore last year. 

This year, an allocation of INR 4900 crore has been received by the UGC, compared to last year, which was INR 4,693 crore and INR 420 crore has been earmarked for the AICTE (All India Council for Technical Education).

Over 20% of an allocation of INR 9420 crore has been received by the central universities, this year, while the central government earmarked INR 7,643 crore to support central universities in the last year's budget 2021-22. 

The Central government has funded the Deemed Universities, with an increase to over INR 390 crore this year from INR 351 crore last year.

Check: Central Govt Approves Setting up DACE in 30 CUs to Prepare SC Students for UPSC Exams

Union Budget 2022-23: IITs, NITs, IIMs Get Funds 

Earlier in the Union Budget 2021-22, the central government funded INR 3,000 crore under the Rashtriya Uchchatar Shiksha Abhiyan (RUSA), through which higher education institutions received financial assistance under the state governments and union territories. 

Now, the funding under the scheme has been once again slashed to INR 2042 crore. The funding had witnessed a sharp fall in the past couple of years, except for the fiscal 2021-22. 

Earlier, in the union budget 2018-19, the Rashtriya Uchchatar Shiksha Abhiyan (RUSA), received a funding od INR 1,392 crore, which was then increased to INR 2,100 crore in 2019-20 but in the same, the allocation was revised to INR 1,380 crore. 

Check: List of IITs in India 

The central government has also laid focus on agri education, for which the finance minister stressed on the importance of revising the syllabi of agricultural universities to meet the requirements of natural, zero-budget & organic farming, modern-day agriculture. 

Meanwhile, the central government has also decided to allow the setting up of foreign universities in the Gujarat International Finance Tec-City (GIFT city) to provide courses in financial management, fin-tech, mathematics among others.

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