An allocation of Rs 1,25,638 crore has been set aside for education in the Union Budget 2024-25 presented by Union finance minister Nirmala Sitharaman on Tuesday. In her budget speech, she prioritized upskilling, job creation and employability of youth.
“Union Budget 2024-25 focus is on employment, skilling, MSMEs, and the middle class. I am happy to announce the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of 2 lakh crore. This year, I have made a provision of Rs 1.48 lakh crore for education, employment and skilling,” said Sitharaman.
Sitharaman also unveiled a new centrally sponsored scheme to skill and train 20 lakh youth over the next five years. “The Model Skill Loan Scheme will be revised to facilitate loans up to Rs 7.5 lakh with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year,” she announced.
Moreover 1,000 ITIs will be upgraded using the hub-and-spoke model and 10 million youth will be provided internship in 500 companies.
‘Employment and skilling’ are one of the top nine priorities of the Centre to achieve the vision of Vikasit Bharat, said Sitharaman.
To support youth who are not eligible for any benefit under government schemes and policies, the government also announced financial support for loans upto Rs 10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3 per cent of the loan amount.
Special status
The Budget has special announcements for Andhra Pradesh and Bihar, the two allies which have helped BJP form the government at the Centre. Sitharaman said that new medical colleges will be started in Bihar.
Budget estimates
Department of School education and literacy — Rs. 73,008 cr
Department of Higher education — Rs. 47,619 cr
Also read: Union Budget: Job creation, incentives for employers and employees takes precedence