Union Budget 2021: Inadequate allocation for skilling, digital learning a concern

At a time when the government is planning to formally begin the implementation of the National Education Policy (NEP), 2020, with specific emphasis on upskilling and digital learning, the education sector was expecting a big increase in budgetary allocation this year, as compared to the previous budget.

Instead, what has come is a dampener. There is visible disappointment in the sector since the 6.1 percent drop in total allocation for the Ministry of Education at Rs 93,224 crore compared to Budget 2020, was announced. In the revised estimate of 2020-21, this stood at 9.5 percent higher.

The Ministry of Education had expected close to 15-20 percent hike in the budgetary allocations for the sector, given the priority that the government has put on NEP. But no big-bang reforms were announced by finance minister Nirmala Sitharaman on this front.

Narayanan Ramaswamy, Partner and Sector Head-Education and Skill Development, KPMG in India, said that while the NEP was announced earlier, this Budget had not seized the opportunity to use this momentum to drive transformation.

“NEP implementation required huge financial support and the Budget has completely ignored it--save some bright spots, which are few and far in between,” he added, candidly.

Funds have been allotted to flagship schemes like the National Education Mission (literacy improvement), Mid-Day Meals in Schools and for autonomous bodies (like IGNOU) and IITs.

“In a year where fund allocation to education should have been increased and many initiatives regarding supporting NEP should have been taken, the slashed allocation by 6.1 percent is disappointing. This could well be a great opportunity missed to give the much-needed impetus to the forward-looking NEP and accelerate the relevance of Indian talent in the global arena,” stated Ramaswamy.

India's education sector is estimated to be worth US$ 103 billion. Countries such as Brazil spend close to 5.8 percent of the country's GDP for education. India spends nearly 4.4 percent. China spends 4.1 percent of its GDP on education but has higher enrolments and research expenditure than India.

How has the allocation trend been?

Since 2019-20, allocations for the education sector have ranged between Rs 90,000 crore to Rs 99,000 crore.

It was Rs 89,437 crore in FY20. This rose substantially to Rs 99,311 crore in the Budget Estimate (BE) of 2020-21. However, it was significantly decreased to Rs 85,089 crore in the Revised Estimate (RE), 2020-21.

In Budget 2021, it was expected that close to Rs 7,000 crore would be exclusively set aside for the implementation of NEP 2020.

NEP 2020 replaces a 34-year-old education policy with its stated objective to promote holistic education. It is aimed at bringing out the unique capabilities of each student. This involves policy changes in school education and higher education to weed out rote-based learning and introduce practical training and analytical thinking.

Finance minister Nirmala Sitharaman did make a mention of NEP in her Budget speech. She explained that a National Professional Standards for Teachers will be set up as part of this policy. Further, she also said that National Digital Educational Architecture (NDEAR) will be put in place to build digital infrastructure.

However, the expenditure Budget did not provide any allocation for these schemes or specifically for NEP 2020.

Manish Mohta, MD of online examination provider, Learning Spiral, said that the stagnant education Budget is a concern, as it is already far lower than most countries in terms of a percentage of GDP.

While on the one hand, allocations for older schemes have stayed constant, new entrants have been given funds. For instance, under the Higher Education Department, there is Rs 50 crore allocation for a Bharat Bhasha University and Institute of Translation.

These funds are likely to be used to aid translation of literary and academic material in various Indian languages.

Technology education has been a key focus for the government. Here, setting up Indian Institutes of Information Technology in the public-private partnership (PPP) mode has been on the agenda for the past two years. However, the allocation for it has stood still at Rs 167 crore, like BE 2020-21.

Neeti Sharma, Senior Vice President, TeamLease Services, said that she was expecting the Budget to focus on up-skilling and re-skilling of workforce across sectors.

“While the Budget has spoken about increasing skilled workforce for new technology competencies, it has not looked at any impetus or reforms to augment the skilling ecosystem,” she added.

According to her, some key aspects that have been overlooked include enabling technology adoption for blended learning/skilling and fast track policy implementation for areas like NEP.

Projects like Operation Digital Board (ODB) saw no rise in allocations for BE 2021-22. Launched in February 2019, ODB is a scheme that aims to provide smartboards in all government-aided schools and higher education institutions. The outlay for this ODB scheme has stood at Rs 1 crore, like the revised estimate, 2020-21.

But a new allocation of Rs 10 crore has been set aside for a segment called 'Indian Knowledge Systems'. This segment will examine elements of knowledge from ancient India, its contribution to modern India and its successes and challenges.

Among the biggest disappointments for the teaching community, by far, has been the small allocation for improvement in salary scales.

While the Budget has spoken about increasing skilled workforce for new technology competencies, it has not looked at any impetus or reforms to augment the skilling ecosystem

- Neeti Sharma

“It is very concerning that the government hasn’t paid adequate attention to compensation for college teachers. If we want to attract high-quality educators, shouldn’t there be significantly higher funds allocated for them” questioned Mumbai-based education consultant, Rasika Pastakhia.

Some bright spots

Amidst concerns of a decrease in allocation, however, the industry did notice some bright spots.

KPMG’s Ramaswamy said, “I have been questioning the wisdom of having parallel research labs and this Budget, for the first time, attempts to correct a 60-year-old legacy by introducing glue grants for an umbrella structure that will bring synergies.”

In the Budget speech, the finance minister said that many cities have various research institutions, universities, and colleges supported by the central government. To enable better synergy, she added that there will be formal umbrella structures created in nine such cities.

Similarly, the allocation of Rs 50,000 crore for National Research Foundation is being seen a bright spot. Sharma of TeamLease Services said that this allocation will improve the research ecosystem and lead to a more methodical and scientific approach in learning.