India’s Interim Budget: 7% cut in education allocation, UGC funding slashed by 61%

In the recent Interim Budget announcement for education in the country, there has been a notable seven per cent reduction in the overall allocation, with a significant 61 per cent cut in funding for the University Grants Commission (UGC), marking the largest reduction in at least five years. The allocated budget for schools experienced a marginal decrease of 0.73 per cent, amounting to Rs 73,008.10 crore, while higher education funding saw a substantial decline of 16.8 per cent, totaling Rs 47,619.77 crore, down by Rs 9,600 crore.

Despite concerns raised by experts about the potential impact on universities and students, the UGC emphasised its commitment to ensuring quality higher education amid the funding cuts. Notably, grants for central universities witnessed a 28 per cent increase. However, for the second consecutive year, support for Indian Institutes of Management (IIMs) was trimmed.

The overall education budget was set at Rs 1.2 lakh crore, and during the budget address, Finance Minister Nirmala Sitharaman highlighted the government’s focus on transforming education through the implementation of the National Education Policy (NEP) 2020.

She highlighted the goal of empowering the generation growing during the “Amrit Kaal,” the 25 years leading up to 2047, as part of the Bharatiya Janata Party’s (BJP) vision for education. It’s worth noting that there is a discrepancy in the reported figures, with the Ministry of Education asserting a 19.5 per cent increase in the school education budget, citing differences in the overall revised estimate mentioned in the Budget document.