Budget 2023: Rs 1.12 lakh crore allocated to education sector, highest ever — here are the highlights

Union Finance Minister Nirmala Sitharaman announced Union Budget 2023 on Wednesday allocating Rs 1,12,899 lakh crore to the education sector. This includes allocation to secondary education, higher education and various schemes like the Samagra Shiksha Abhiyaan. In comparison to the previous budget estimate (BE) of Rs 1,04,278 crore, this is nearly 8.26 crore more or 8.26 percent growth 2022-23.

In Union Budget 2022 the education sector was allotted Rs 1,04,278 crore signifying a rise of Rs 11,054 crore from 2021.

As per the National Education Policy, 2020 (NEP) public investment on education should be 6 percent of India’s GDP. India’s education budget has never touched this number.

In 2022-23, the Department of School Education and Literacy was allocated Rs 63,449 crore in or 61 percent of the Ministry's total budget. The Department of Higher Education was allocated Rs 40,828 crore, accounting for 39 percent of the Ministry’s total allocation.

In the Union Budget 2023 the allocation for school education has increased by 8 percent from Rs 63,449 crore (Budget Estimate) in 2022-23 to Rs 68,804 crore in 2023-24.

For Samarga Shiksha Abhiyaan Rs 37453.46 crore has been allocated.

In 2022-23, the highest expenditure (36 percent) is allocated towards Samagra Shiksha (Rs 37,383 crore). For 2022-23, most of the allocation to the Department of School Education and Literacy is for Samagra Shiksha (59 percent), autonomous bodies (19 percent), and the PM POSHAN scheme (16 percent). Autonomous bodies refers to the Kendriya Vidyalaya Sangathan, Navodaya Vidyalaya Samiti, National Council of Educational Research and Training (NCERT), Central Tibetan School Administration, and National Bal Bhawan. Table 4 shows the key expenditure heads of the department.

PRS Legislative Research data shows that between 2011-12 and 2021-22, the Department’s expenditure has seen a compounded annual growth of 2 percent. This is lesser than the CAGR of the Ministry’s actual expenditure (3.8 percent), during the same time period (2011-12 to 2021-22).

Further In BE 2023-24, the corpus of Prarambhik Shiksha Kosh (PSK) and Madhyamik and Uchchtar Shiksha Kosh (MUSK) is Rs 20,000 crore and Rs 3,000 crore respectively.

In the allocation higher education has received Rs 44,094 crore in Union Budget 2023-24, an increase of 7.9 percent from Rs 40,828 crore (Budget Estimate) in 2022-23.

Digital India e-learning has been allocated Rs 420 crore. Research and innovation has been allocated Rs 210 crore. University Grants Commission has been allocated Ra 5360 crore. Indian Institute of Technology has been allocated Rs 9661 crore while Indian Institute of Management has been allocated Rs 300 crore.

In 2022-23, the Department of Higher Education was  allocated Rs 40,828 crore (13 percent increase over revised estimates of 2021-22).

This was 39 percent of the total budget allocation to the Ministry of Education.

As per data by PRS between 2011-12 and 2021-22, the Department’s expenditure has seen a compounded annual growth of 6 percent.

Read all the announcements made for the education sector here -Budget 2023: Here are all the announcements for the education sector