A BRIEF ANALYSIS OF

INDIAN UNION BUDGET

2010-2015

SECTOR: EDUCATION

UNDER THE GUIDANCE OF

PROFESSOR DR. SAPNA SURI

DR. D Y PATIL UNIVERSITY,

SCHOOL OF BUSINESS MANAGEMENT,

NAVI MUMBAI

PRESENTED BY

SNEHA J CHOUHAN

(ROLL NO. 21)

MBA- CORE A

CONTENTS• What is Union Budget?

• The scenario of education

sector in India.

• The analysis of Union Budget

for 5 years from 2010- 2015

their analysis, benefits,

suggestions and contribution

in GDP.

What is Union Budget?

• The Union Budget of India, also referred to as

the Annual financial statement in the Article

112 of the Constitution of India, is the annual

budget of the Republic of India.

• It is presented each year on the last working

day of February by the Finance Minister of

India in Parliament.

What is Union Budget?

• The budget, which is presented by means of the

Financial bill and the Appropriation bill has to be

passed by the Houses before it can come into

effect on April 1, the start of India's financial year.

• The first Union budget of independent India was

presented by R. K. Shanmukham Chetty on

November 26, 1947

The scenario of education sector in

India.• The Indian education sector is one of the largest

sunrise sectors contributing to the country’s economic and social growth.

• The Indian education system, considered as one of the largest in the world, is divided into two major segments of core and non-core businesses.

• While, schools and higher education for the core group, the non-core business consists of pre-schools, vocational training and coaching classes.

• The education sector in India is evolving, led by the emergence of new niche sectors like vocational training, finishing schools, child-skill enhancement and e-learning.

• India has emerged as a strong potential market for investments in training and education sector, due to its favourable demographics (young population) and being a services-driven economy.

- 90 private universities

- 5 institutions established and functioning under the State Act, and 33 Institutes of National Importance.

- Other institutions include 33,000 colleges as Government Degree Colleges and Private Degree Colleges, including 1800 exclusive women's colleges, functioning under these universities and institutions as reported by the UGC in 2012.

- The emphasis in the tertiary level of education lies

on science and technology.

- Indian educational institutions by 2004 consisted of

a large number of technology institutes.

- Distance learning and open education is also a

feature of the Indian higher education system, and

is looked after by the Distance Education Council.

- Indira Gandhi National Open University is the

largest university in the world by number of students,

having approximately 3.5 million students across

the globe.

Why Indian Education Sector is

a booming industry?• India's higher education system is the third largest in

the world, next to the United States and China.

• Indian higher education system has expanded at a

fast pace by adding nearly 20,000 colleges and

more than 8 million students in a decade from 2000-

01 to 2010-11.

• As of 2011,

- India has 42 central universities,

- 275 state universities,

- 130deemed universities,

Why Indian Education Sector is a booming industry?

Some institutions of India, such as the

• Indian Institutes of Technology (IITs),

• Indian Institutes of Management (IIMs),

• All India Institute for Medical Sciences- (AIIMS)

• National Institute of Technology (NITs),

• Indian Institute of Information Technology (IIIT),

• University of Mumbai and

• Jawaharlal Nehru University have been globally

acclaimed for their standard of education.

SWOT ANALYSIS OF EDUCATION SECTOR

Responsible for the creation of large human resource.New education reforms has made education sector more lucrative.According to the world bank 3.6 million teachers are working on full time basis.

Heavy dependence on government fundingPolitical interference in the universities administrationLittle scope in extra curriculum activities

Inflow of foreign students resulting in huge revenuesFDI in education helping the Indian students to get education a cheaper costsMore than 300 equity funds likely to invest in Indian education system

Private institutions may not indulge in social responsibilityHigh growth in foreign and Indian colleges might focus on profit making rather than quality education

STRENGTHS WEAKNESS

OPPORTUNITIES THREATS

Highlights for the education sector Union Budget for the

year 2010- 2011

• Plan allocation for school education increased by

16 per cent from Rs.26,800 crore in 2009-10 to

Rs.31,036 crore in 2010-11

• In addition, States will have access to Rs.3,675

crore for elementary education under the Thirteenth

Finance Commission grants for 2010-11

IMPACT (2010- 2011)• The Finance Minister in his Union budget 2010

speech suggested the restoration of Right of Children to Free and Compulsory Education Act, 2009 which formulates a legal agenda for privileges of children falling under the age group of 6 to 14 years.

• He also notified the achievements of Sarva Shiksha Abhiyan (SSA) launched by the government, in the field of education and improving infrastructure for basic education.

• Mr Mukherjee suggested a monetary hike for elementary education to Rs. 31, 036 crore in the current fiscal year against the previous Rs. 26, 800 crore, in addition all states access to basic education with a grant of Rs. 3, 675 crore for 2010-11.

Highlights for the education sector Union Budget for the

year 2011- 2012• Allocation for education increased by 24 per cent

over current year. Sarva Shiksha Abhiyan „ Rs 21,000

crore allocated, which is 40 per cent higher than

Budget for 2010-11.

• Pre-matric scholarship scheme to be introduced for

needy SC/ST students studying in classes IX and X.

IMPACT (2011- 2012)• Over 70 per cent of Indians will be of

working age in 2025. In this context, universalising access to secondary education, increasing the percentage of Indian scholars in higher education and providing skill training is necessary.

• For education, an allocation of 52057 crore, was proposed in the Current budget which is an increase of 24 per cent over 2010-11.

Highlights for the education sector

Union Budget for the year 2012- 2013

• 25,555 crore provided for (Right to education – SarvaSiksha Abhiyan) RTE-SSA .

• 6,000 schools proposed to be set up at block level as model schools in Twelfth Plan.

• 3,124 crore provided for Rashtriya Madhyamik Shiksha Abhiyan (RMSA) representing an increase of 29 per cent over BE 2011-12.

• To ensure better flow of credit to students, a Credit Guarantee Fund proposed to be set up.

IMPACT (2012- 2013)• The government had given liberal grants to

few institutions of higher education ranging from Rs 10 crore-Rs 100 crore, most students from these institutions end up joining the private sector and few are inclined to join public sector.

Highlights for the education sector

Union Budget for the year 2013- 2014• Rs. 4,727 crore for medical education, training and

research.

• Rs. 1,650 crore allocated for six AIIMS-like institutions.

• Allocation of Rs. 65,867 crore to the Ministry of Human Resource Development, an increase of 17 percent over the RE of the current year.

• 27,258 crore provided for Sarva Shiksha Abhiyaan(SSA).

• Rs. 5,284 crore allocated to Ministries/Departments in 2013-14 for scholarships to students belonging to SC, ST, OBC, Minorities and girl children. ‰

• MidDay Meal Scheme (MDM) to be provided Rs.13,215 crore. ‰

• Government committed to the creation of NalandaUniversity as a centre of educational excellence.

IMPACT (2013- 2014)• Thrust on education by increasing allocation goes

well for education sector and Education companies

like Educomp, Everonn, NIIT Everonn Education will

be benefit from allotment of fund to National Skill

Development Fund which is formed to motivate

youth to voluntarily join skill development

programmes.

• Everonn has entered into a JV with the Union

government's NSDC to train 1.5 crore people in

various technical streams over the next 10 years.

Highlights for the education sector

Union Budget for the year 2014- 2015o Government would strive to provide toilets and drinking

water in all the girls school.o An amount of Rs. 28,635 crore is being funded for Sarva

Shiksha Abhiyan.o Rs. 4,966 crore for Rashtriya Madhyamik Shiksha Abhiyan. o A School Assessment Programme is being initiated at a

cost of Rs. 30 crore. o A sum of Rs. 100 crore for setting up virtual classrooms as

Communication Linked Interface for Cultivating Knowledge (CLICK) and online courses.

o National Centre for Excellence in Humanities in Madhya Pradesh.

o I also intend to set up five more IITs in the Jammu, Chattisgarh, Goa, Andhra Pradesh and Kerala.

o Five IIMs would be set up in the States of Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra. A sum of Rs. 500 crore for this.

o Government also proposes to ease and simplify norms to facilitate education loans for higher studies

IMPACT (2014- 2015)• Increased budgetary allocation for primary & secondary

education expected to positively impact the quality of

infrastructure & teaching– May also help in curbing the drop-

out rate

• The school assessment program is expected to gauge the

quality through various parameters such as levels of student

learning outcomes, quality of teaching by teachers etc. Such

information will be useful for parents & students to make a

more informed choice about schools

• Assistance for scaling up of existing technical institutions and

establishment of new institutions of national importance such as IITs, IIMs and AIIMS is expected to boost the intake

capacity and improve access

• Increased thrust on embracing technology through online

courses and virtual classrooms likely to benefit the masses by

making quality education available at a click of a button

REFERENCES• http://en.wikipedia.org/wiki/Budget

• http://indiabudget.nic.in

• www.moneycontrol.com

• http://timesofindia.indiatimes.com/budgetspecial.c

ms

• http://economictimes.indiatimes.com/budget2015

THANKYOU

“Education is a powerful weapon which you can use to change the world.”

-Nelson Mandela