Impacts of financial strain on educational – A disservice to the education sector

Source: The post impacts of financial strain on educational has been created, based on the article “A disservice to the education sector” published in “The Hindu” on 26th February 2024.

UPSC Syllabus Topic: GS Paper 2-governance-Issues relating to development and management of Social Sector/Services relating to Education

News: The article discusses how the recent budget in India has greatly reduced funding for higher education and slightly increased it for school education. This reduction in university funding is against India’s commitment to providing inclusive and quality education to all.

What are the budget provisions for education?

Substantial Cut in Higher Education: The budget has reduced funding for higher education by over 60%, cutting ₹9,600 crore from last year. This affects institutions like IITs and IIMs.

Funding for Specific Projects: There’s a small increase in school education funding. But significant portions allocated for specific projects like PM-SHRI schools and Eklavya Model Residential Schools, which impacts the budget for existing schools.

What are the impacts of financial strain on education?

Increased Loan Dependency: Funding is being redirected from the University Grants Commission to the Higher Education Financing Agency (HEFA), increasing reliance on loans instead of grants.

Financial Pressure on Institutions: These cuts compel colleges and universities to introduce more self-financing courses, likely leading to increased tuition fees.

Negative Impact on Marginalized Students: The reduction in funding exacerbates the challenges faced by marginalized groups in accessing higher education, as their Gross Enrollment Ratios are already below the national average.

Overall Quality of Education at Risk: The shift in funding priorities and the ensuing financial challenges might adversely affect the overall quality of education offered in Indian higher education institutions.

Contradiction with Education Goals: The budget cut is at odds with India’s commitment to the ‘Education 2023: Incheon Declaration,’ which calls for allocating 4-6% of GDP to education. The current allocation stands at approximately 2.8% of GDP, significantly lower than the target range.

Way forward

To improve education in India, the government should increase funding for higher education, aligning with the 4-6% GDP goal of the Incheon Declaration. This will support marginalized groups and reduce the economic burden on students, as currently, higher education GER is much lower than the global average.

Question for practice:

Discuss the impacts of the recent budget provisions on education in India.