Experts say digital divide must be bridged, listing expectations for education sector in 2024 budget

The upcoming Union Budget 2024, due by the end of this month, has raised high expectations across sectors. The education sector in particular is hoping for key announcements on the skills gap and preparing the youth for Industry 4.0.

Also Read: Budget 2024: Govt should make NPS fair for all categories of subscribers

The Ministry of Education has received its highest ever allocation of Rs 1.12 lakh crore in the 2023 budget, which is a moderate increase from Rs 1.04 lakh crore in the previous budget. However, this amount is below the 6 per cent of India’s GDP recommended by the National Policy on Education, 2020. Of the total allocation in the previous budget, the Department of School Education and Literacy received Rs 68,804.85 crore, while the Department of Higher Education received Rs 44,094 crore.

Industry participants believe that the education budget will increase and reduced operational costs for stakeholders due to tax cuts could spur innovation in the sector. Some are calling for a reduction in GST on online learning platforms and are highlighting the need to bridge the digital divide and campaign for digital literacy.

Industry expectations

Rohit Gajbhiye, CEO and founder of education-focused fintech firm LEO1, says, “Being in the edu-fintech segment, highlighting partnerships between fintech companies and educational institutions for skill development is crucial.”

“The budget can propel the industry forward by aligning educational advancements with economic needs, equipping the workforce with the necessary financial skills for digitalization. Tax breaks and subsidies to reduce operating costs, increased funding for research and development to boost innovation, and subsidies for training and professional development are also some of the key expectations,” Gajbhiye said.

Mamta Shekhawat, Founder, Gradding.com said, “The interim budget was announced in February 2024 and allocated Rs 47,619.77 crore for higher education. The budget allocation for education has been increasing every year and this trend is expected to continue. The focus on NEP 2020 and NCF 2023 should continue and the initiative to develop industry 4.0 courses under Budget 2023 will help students. A part of the allocation should be used to bridge the digital divide and drive digital literacy.”

“We expect the Modi 3.0 Cabinet to allocate more funds for the development of higher education institutes where research and hands-on learning are given top priority. The new budget is expected to benefit our tech-savvy youth who will lead our country towards growth,” Shekhawat added.