The Hindu : National : Thrust on higher education in budget

Online edition of India's National Newspaper
Tuesday, Jul 07, 2009
ePaper | Mobile/PDA Version

National

National

Thrust on higher education in budget

Special Correspondent

NEW DELHI: The United Progressive Alliance (UPA) government has now made higher education its thrust area with a view to increasing the gross enrolment ratio to 15 per cent by the end of the 11th Plan.

A key announcement in this regard was made in Union Finance Minister Pranab Mukherjee’s budget speech itself on Monday in the form of a student loan for economically weaker sections. Under this scheme, eligible students will be provided full interest subsidy during the period of moratorium.

It will cover loans taken by such students from scheduled banks to pursue any of the approved courses of study, in technical and professional streams, from recognised institutions in the country. An estimated five lakh students would benefit from this scheme.

Further, he has extended the scope of Section 80E of the Income-tax Act — providing tax exemptions for educational loans to pursue higher studies in specific areas — to cover all sectors including vocational studies after school.

While the Plan outlay for higher education has been raised from Rs. 6,800 crore in 2008-09 to Rs. 9,596 crore, the allocation for school education and literacy remains static at Rs. 26,800 crore. However, the non-Plan outlay in both departments has gone up sizeably; primarily owing to the increase in salaries following the implementation of the Sixth Pay Commission recommend ations.

In keeping with the commitment made in the President’s address to Parliament last month, the Minister announced the setting up of a National Mission for Female Literacy.

This mission-mode exercise to reduce female illiteracy by half in three years will focus attention on the minorities and SCs and STs.

To make the best use of the demographic advantage the country has in terms of a large percentage of young population, he increased the allocation for the ‘Mission in Education through ICT’ scheme to Rs. 900 crore.

Printer friendly page
Send this article to Friends by E-Mail

National