(Interactive chart by Sanjit Oberai)
For the education sector, Union Budget 2013 gives reason only for a muted cheer. Finance Minster P Chidambaram has allocated Rs 65,867 crore to Ministry of Human Resource Development (MHRD), which is an increase of 17 per cent over the Revised Estimate of the previous year. However, it is only an increase of around 7 per cent when compared to the actual planned numbers of the last year. Apart from the increase in expenditure, Mr Chidambaram also announced some additional schemes for students.
The government has allocated a grant of Rs 100 crore each to Aligarh Muslim University, Aligarh Campus, Banaras Hindu University, Varanasi, Tata Institute of Social Sciences, Guwahati campus and the Indian National Trust for Art and Cultural Heritage (INTACH). In addition, the government also Rs 5,284 crore to various Ministeries for scholarships to students belonging to Scheduled Castes, Scheduled Tribes, Other Backward Classes and Minorities, and girl children.
The new Companies Bill obliges companies to spend 2 per cent of average net profits under Corporate Social Responsibility (CSR). According to this Budget, Ministry of Corporate Affairs will notify that funds provided to technology incubators located within academic institutions and approved by the Ministry of Science and Technology or Ministry of MSME will qualify as CSR expenditure. This move is expected to benefit b-schools across the country. “With Incubators set up by companies in academic institutions qualifying as Corporate Social Responsibility (CSR) activity entrepreneurship in higher education institutions will get a major boost. XLRI as a respected management institution looks forward to welcoming forward-thinking organisations to set-up incubators in our campus. With the economy getting more mature it is imperative that entrepreneurs are encouraged to help shape a vibrant economy and sustainable future,” says Fr E Abraham, S J, director of XLRI.
However, industry experts arent really impressed with the outlays for education this Budget. Mr ARKS Srinivas, formerly an MBA coach and now Director, Vanguard Business School and CEO, VistaMind, says, “While the initiatives taken in the budget are a welcome move, there are far bigger problems in the economy. One of the biggest concerns for me and for someone who trains MBA students and engineers, is on the job front. There are 3-4 lakhs MBA students coming out every year, and many more degree students. Where are you going to create gainful employment for them.”