Hyderabad|India|March'2012: The Union Government could probably have done much better when it comes to education segment by taking adequate measures by significantly increasing the country’s total budgetary spending. The present total Government spending, Centre and State combined, on education accounts for about 3.7% of GDP (as of 2009-2010), which is way below the benchmark of 6% recommended 40 years ago. Not much focus is seen in prioritizing public provisioning for education either. Considering 2012-13 being the first year of the 12th Five year plan there is not been much to be seen in the policy implementation of the RTE Act. As a share of the GDP, the allocations have registered a miniscule hike from 0.69 % of the total budget (in 2011-12 RE) to 0.73 % in 2012-13 BE.

While many may think that Education may not be the priority of Budget 2012-13, some benefits can be seen. “The credit guarantee fund which has been introduced for better access to education loans for those pursuing higher education is much appreciated”, says, Prof. Durga Prasad, Dean VJIM, Hyderabad. “We have tie ups with several banks so that students trying to secure admission at VJIM get loans smoothly. But, this type of initiative has to come from the Government in the interest of the nation. Once the Government takes up the responsibility of financing education, the country can think of inclusive growth with well-educated citizens. With a slice of the interest going to the credit guarantee fund, the bankers can recover losses, if any. It’s a win-win situation for all.”

“This move is highly motivating for many talented students coming from different socio economic strata seeking admissions for higher studies. But, awareness has to be created and availability made for deserving candidates else the fund may not serve the purpose and fulfill the objective”, adds Prof. Pinakapani, Director, Badruka Inst. of Management Studies.

As per, Prof. Shalini Taneja, FORE School of Management, Delhi, “With 70% of Indians in employable bracket by the year 2025 and with increasing percentage of scholars in higher education, India can be the major contributor to the global workforce over the next few decades. Hence, expectations ran high. The focus on rural development schools and agricultural universities, 10 fold increase in exemption limit for children’s education allowance and support for higher education is commendable. But one should look beyond elementary skill development to match global competency level.”