Budget 2016: Here's what academicians want for the education sector

The education sector is unanimous in its focus on seeking skill development initiatives from the government, which emerged as the top priority amongst educators, in the run up to the 2016 budget. Most academicians dna spoke to agree that several initiatives need to be taken, including incentivising institutions that facilitate skill building, building infrastructure for these activities, improving access to gaining technical skills, to make sure that Prime Minister Narendra Modi's ambitious Skill India program of equipping 40 crore youth by 2020 is a success.

Moreover, they also seek an integration of education into the government's Digital India program. Most academicians dna spoke to, agreed that the government needs to up its investment into setting up the infrastructure for the education system in India, which will only help in aiding its key initiatives viz. Skill India, Digital India and Make in India, in the long run. They also expect the government to increase the overall government spending which was slashed by 2% in the last budget, a simpler tax regime to encourage more players to enter into the sector, and easier, cheaper loans to ensure several more children can avail a good education. 

Here's what the academicians want from Finance Minister Arun Jaitley:

Professor Rudra Sensharma, Associate Professor of Economics, IIM Kozhikode

As controlling the fiscal deficit is of paramount importance, it would be unwise to expect the Finance Minister to increase its budget allocation for the education sector. However, education sector policies should prioritise supporting the Skill India programme so that our 'demographic dividend' does not turn into a 'demographic disaster'. Education must impart transferable skills which will produce a skilled workforce and also reduce school dropout rates. Companies should be allowed to use their mandatory Corporate Social Responsibility (CSR) spending to hire and train interns from schools and colleges. Digital India can be leveraged to support lifelong training and education.

Professor Neela Dabir, Dean, TISS School of Vocational Training

With the government's focus on Skill India and Make in India, investment in vocational education is the need of the hour. There is a need for short-term as well as long-term vocational training courses in a variety of sectors, including skill training for manufacturing as well as service sector jobs.

The University Grants Commission (UGC) has introduced a new degree -- Bachelor of Vocation (B. Voc.), which can be awarded in across fields. There is a need to fund these initiatives by giving out scholarships to students enrolled in vocational training courses.

Tax exemptions for vocational training institutions as well as industries that provide internship opportunities or on-the-job training to students, will go a long way. Currently, service tax exemptions are applicable to NSDC partners but not to all vocational education providers. 

In this budget, I'm looking forward to seeing a larger allocation for boosting skill and vocational training initiatives through tax exemptions and scholarships for job oriented skill training programs. 

Professor Ramola Kumar, Dean, Delhi School of Communication

Nurturing the mind of a child may not require two acres of land or highly sophisticated infrastructure; even a small institute with sincerity and passion can help build lives. 

The push of the government towards Skill India and the creation of an employable work force (which will, in turn, spearhead the country's growth) will be facilitated by service tax relief to private players of the industry. A relief from service tax will encourage more players to enter the industry as well. More importantly, micro-financing and easy availability of loans to students, especially to those showing a good academic track record will further enable deserving students to study and gain employability. Lowering of interest rates for education loans will also help.

Professor Manaswini Acharya, Professor of Marketing and Dean (Placements & Corporate Relations), International Management Institute

There is an urgent need for the government to push the agenda for economic reforms. Directly related to the budget are direct tax reforms and indirect tax reforms, particularly the introduction of GST. The finance minister will also have to do a balancing act between reducing the fiscal deficit and accelerating growth of GDP.

Akhil Shahani, Director, Thadomal Shahani Centre for Management

There are many things that the finance minister can do to provide the much-needed support to India's education system. Budget allocations from the Centre to build more low-cost schools and colleges in various states can be enhanced, along with providing increased funding for existing government-aided institutions. Paying for a child's education is the third largest cost a family bears after rent and food. There should be greater tax deductions for fee expenses, along with larger tax breaks for paying back education loans.

Ninad Karpe, Managing Director & Chief Executive Officer, Aptech

Last year’s budget witnessed a 2% cut in budgetary allocation to the education sector. To give a thrust to the three critical programmes of the government -- Make in India, Skill India and Start-up India -- it is critical to provide a boost to the education and skill development initiatives. The social sector has been unequivocally advocating for increasing education funds from the current 4% to 10% of GDP. 

In addition, the government needs to focus on teacher training through internship programmes; a robust single-window mechanism to certify skilled workers; effect guidelines for banks to ensure student loan financing moves from ‘collateral-based’ to lien on ‘future earnings’; and focus on girl child education and skill development, especially for women.

Monica Malhotra Kandhari, Senior Director, MBD Group

The education sector plays a pivotal role in the ‘India Growth Story’ but the outlay for education in previous budgets has consistently been less than 4% of the GDP, a figure lower than the average spending of almost 10% on education in the developing world. In a developing economy like India, the outlay should ideally be in double digits. I expect the Union Budget 2016-17 to give thrust and impetus to the education sector.

Apart from increased outlay, the budget must also look at ways to improve the quality and access of education to all. Policy pronouncements made in earlier budgets regarding the development of digital infrastructure must be re-affirmed with outlay specifically for this purpose, as this is the need of the hour. The budget must also take measures to encourage academic research, the participation of private industry players to advance the sector. Curriculum reforms with a focus on improving learning outcomes should also be undertaken at the earliest.

Akshaya Patra, NGO dealing with hunger and malnutrition in India

With 287 million illiterate adults and 1.4 million out of school, India’s education system is standing on slippery grounds. This is a direct consequence of India’s decreased GDP spent on education (3.3%) as against a global average of (4.9%). India is also placed on the lowest rung when it is compared to its BRICS counterparts who too spent an average of 5% of their GDP on education. 

The predicament of India’s education sector especially school education has been further hit by decreased expenditure in budget allocation for children education, development, health and protection from Rs. 81,075.26 crore in 2014-15 to Rs. 57,918.51 crore in 2015-16. Threading from this, a vehement need to focus on education as one of the most significant public sector reforms is the need of the hour.

Akshaya Patra strongly believes that the Union and the State Governments should arrive at a road-map to initially achieve a competitive spend matching the world average by investing more in school education and declaring the same as a national priority area core to the progress of India. (Akshaya Patra has implemented the mid-day scheme in government schools and government-aided schools.)