Union Budget 2024: Education sector hopes for enhanced support, GST reforms, job creation

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget for the current financial year on July 23, stakeholders in the education sector have expressed high hopes for reforms and increased financial support.

Their expectations focus on making education more affordable and accessible, enhancing digital infrastructure, and fostering international collaborations.

Expectations for the K-12 sector (Kindergarten to 12th grade)

Many expect a significant change in the K-12 sector, which directly impacts 'building the educational base' for the students. Amit Baveja, managing director of Burlington English, India & Southeast Asia, noted that the Ministry of Education received a 13 per cent budget increase last year.

He said, "It is crucial that we build on this progress (13 per cent increase) by further supporting learning initiatives and enhancing educational infrastructure, particularly in the K–12 sector."

"Focusing on improving digital infrastructure to strengthen our examination systems by incorporating smart assessments will ensure safe, accessible, and efficient evaluations in the sector," he added.

GST Exemptions for Low-Income Students

Experts have emphasised the need for GST exemptions on educational expenses for students from Below Poverty Line (BPL) and Low Income Group (LIG) families.

Prateek Maheshwari, co-founder of ed-tech platform Physics Wallah, said, "There is an urgent need for 100 per cent GST exemption on educational expenses for students from Below Poverty Line (BPL) and Low Income Group (LIG) families. The 18 per cent tax rate on education services, including test prep and skill courses, is excessively high and burdensome. The government must devise mechanisms to make quality education more affordable and eliminate ambiguities in GST exemptions related to student housing."

Job Creation and Private Sector Participation

Maheshwari also talked about how allocating the budget for job creation and enabling private sector participation is also important.

"The government should allocate budgets to boosting job creation and making fundamental changes so that private players can help put the vision of Viksit Bharat into action. Additionally, to create affordable degrees to increase the Gross Enrollment Ratio (GER), student financing should be rationalised in Higher Education," he said.

Study Abroad, Global Partnerships and Reduced Interest Rates

In recent years, there has been a shift towards studying abroad, where more and more Indian students seek to go abroad for their higher education. However, hurdles like managing the expenses or getting an easy education loan stand in between many such dreams.  

Speaking of the GST in the international education sector, Pankaj Dhingra, Co-Founder & Managing Partner of FinTram Global, talked about how there are high hopes for reduced GST on international qualifications, easier access to educational loans, and improved employment prospects for certified professionals.

"These measures would make global education more affordable and help develop a highly skilled workforce," he said. 

"We anticipate significant investments and initiatives aimed at enhancing accessibility to quality education through increased scholarships and financial aid. This support is crucial for students aspiring to study both within India and abroad. With the growing demand for international education, it is imperative that the budget addresses the need for better financial assistance," added Meenakshi Kachroo Chatta, Senior Director, College Board of India, South & Central Asia.

On the other hand, many anticipate that India's global ties may foster more international partnerships and collaboration.

Aritra Ghosal, Founder and Director of OneStep Global, highlighted the importance of international educational collaborations, such as the Australia-India partnership.

"Such initiatives will open new pathways for knowledge and workforce exchange and streamlining the process for foreign universities to establish campuses in India will also strengthen India's international standing and prioritize global education," he said.