Turning a new leaf for higher education

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: Finance minister Pranab Mukherjee raised the overall plan expenditure for Budget 2009-10 to Rs 3.25 lakh crore, up 34% from the previous year. Within higher education too the overall Plan allocations have increased by Rs 2,000 crore or 26% over the previous year’s Budget amount of Rs 7,600 crore. Among initiatives in higher education, the minister proposed Rs 2,113 crore for IITs and NITs, which includes a provision of Rs 450 crore for the new IITs and NITs. Mukherjee also reiterated the intent of having one central university in each uncovered state and proposed Rs 827 crore for the same. Prof Mool Chand Sharma, vice-chancellor of the newly set up central university in Haryana said, “This communication on central universities made during the Budget speech further indicates the seriousness of the central government and ministry of human resources development (MHRD) who in the last one week has sent out four to five communications on central universities.”

In order to encourage a greater enrolment in higher education the minister also announced a “full interest subsidy for poor students for higher education” which is expected to benefit five lakh students. Loans raised for the purpose of vocational studies after schooling would also be entitled to income tax incentives. Commenting on allocations made on education, Manish Desai, associate director, PricewaterhouseCoopers said, “On the tax front, by proposing to amend the definition of ‘higher education’ in Section 80E of the Income Tax Act, 1961 (dealing with deduction of interest on loan taken for education purposes) to also include all fields of study, including vocational studies, pursued after completion of senior secondary schooling, will provide boost to students wanting to undertake courses in specific fields. However, clarity on regulations for foreign universities to establish colleges and universities in India would have been a welcome step.” In terms of education cess collected, the receipts budget for 2009-10 adds up to Rs 15,360 crore up 3.4% from Rs 14,844 crore collected in 2008-09 receipts.

The intent to improve the prospects for education among minorities and the disadvantaged was a strong message communicated by the minister during the Budget 2009-10 speech. The minister announced the launch of a “national mission for female literacy”, which will focus on minorities, SC, ST and other marginalised groups with the overarching aim, in the next three years, of reducing by half the current level of female illiteracy, that stands at about 50%.