Budget 2024: Key highlights and allocations in the education sector

Budget 2024: The Union Finance Minister, Nirmala Sitharaman, presented the Union Budget for 2024-25 with a significant focus on education, employment, and skilling.  An allocation of Rs 1.48 lakh crore has been made for these sectors, reflecting the government's commitment to human resource development and social justice.

This education budget sustains the efforts across one of the nine key priorities of the government mentioned in the budget presentation, i.e., employment and skilling.

Financial support and education loans:

Financial support: The budget introduces substantial financial support for higher education. The government will provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions. Additionally, e-vouchers with an interest subvention of 3% of the loan amount will be given directly to 1 lakh students annually.

Skilling initiatives:

- Internship opportunities: A scheme to provide internship opportunities in 500 top companies to one crore youth over five years. Interns will receive an allowance of Rs 5000 per month and a one-time assistance of Rs 6000. Companies will 
fund these internships partly through CSR contributions.

- ITIs upgrade: 1,000 Industrial Training Institutes (ITIs) will be upgraded using a hub and spoke model. Course content will align with industry needs, and new courses will be introduced to meet emerging requirements.

- Centrally sponsored skilling scheme: A new centrally sponsored scheme will skill 20 lakh youth over five years in collaboration with state governments and industry.

Women empowerment:

- Women hostels: To promote women's participation in the workforce, the government will set up working women hostels and establish creches in collaboration with industries.

- Allocation for women and girls: The budget allocates more than Rs 3 lakh crore for schemes benefitting women and girls, signaling a commitment to enhancing women's role in economic development.

Healthcare development:

- Medical colleges: New medical colleges will be established in Bihar to improve healthcare infrastructure and access.

Moreover, in the interim Budget (tabled in February), grants for central universities increased significantly, with Rs 15,928 crore allocated for the financial year 2024-25. The interim budget allocation announced in February for the Education Ministry increased by 6.8% to Rs 1,20,627.87 crore, up from Rs 1,12,899.47 crore in 2023-24.

The Education budget for 2024-25 highlights the government's policy continuation from the interim budget and underscores the government's focus on creating opportunities for all through education, employment, and skilling.