India is still reviving from the devastations of the COVID pandemic and it won’t be wrong to say that along with every other vertical, the Indian education sector has also been through a lot. In the upcoming Budget of 2021 by Central Govt. the country is expecting to witness some major renovations in the education dept. which can remain aligned with the paradigm shift in the learning and teaching methodologies at present. After witnessing a key development last year in form of National Education Policy 2020 (NEP-2020) which was unveiled by the Narendra Modi government to bring reforms, the Finance Minister Nirmala Sitharaman might make some substantial announcements in this context in the upcoming budget announcement. Apart from the NEP 2020, Budget 2021 also needs to focus on skill development as India is aiming to become ‘Atmanirbhar’.
As the count down for Budget 2021, experts of the education sector have a series of expectations from Finance Minister Nirmala Sitharaman, out which few are mentioned below.
1. Technology in Education: The COVID-19Pandemic has paved way for implementing technology in education. Higher education needs it more than ever as it is directly proportional to the career and future of the students. The higher education ecosystem not only requires quality access with affordability which can be solved by leveraging technology but a proper budget can also benefit the students as they come close to finish their formal education and are looking into upskill themselves for becoming industry-ready. Although the implementation of NEP would be closely watched, the FM will be expected to extend some relief to the sector in terms of GST. It is also expected to look for subsidy on education loans given for both formal and skill-based learning. Govt might take initiative of launching ed tech-focused funds that will help small and mid-size ed-tech companies and as well as start-ups.
2. Online Teaching and Learning: Being a new reality, many organizations have invested time, money, and resources to deliver quality education to students through online teaching and learning. Acknowledging this fact, the govt. should show promptness in reducing the GST on online education service from the present 18 percent to 5 percent in Budget 2021, making online education accessible to more and more students. After witnessing a huge transformation in the education system in past one year due to the advent of pandemic public is optimistic, the country is looking forward to some big announcements in Budget 2021 in the education sector, especially with respect to the New Education Policy and with more focus on the K12 segment. Ensuring education to more and more students across the nation, the major focus is expected on the skilling and STEM based education in schools and colleges.
3. Rural, Primary Education: The COVID pandemic has not only affected the health of our nation but has also left millions of our students from financial backword background are struggling to cope up with their education. The impact has been mostly harsh on the rural population as they have minimal or negligible access to the internet and rely severely on government schools. Various govt. initiatives such as mid-day meal program and the vaccination drive has been interrupted. As a result of which many students not only missed out on their education but also their health and nutritional needs.
As the union and the state governments are currently preparing the budget for this fiscal year, they must take into consideration of the perilous conditions of our students. The emphasis should primarily remain on ensuring 100 percent enrollment at the primary school level and also developing bridge courses which can be offered at the community level.
4. Tax exemption: In India, Degree or diploma granting authority is only granted to those institutions that operates as ‘not for profit’ and they enjoy ‘Tax exemption’ status. However, to obtain such advantage of tax exemption, institutes need to employ 85 per cent of the revenue earned. Only 15 per cent can be retained by managing future cash flows or crisis. It has come into notice that many students have opted for loan to pay for their tuition and hostel fee. Students have reportedly been through many difficulties to cope up with the adversities of COVID pandemic. As a result of which in Budget 2021, the central government is expected to make reduction of 85 percent expenditure limit to get tax exemption to 75 per cent. As per the nation, the additional 10 per cent may be invested in a fund specially created by the government for educational institutions.
