The Union human resources development ministry is seeking a substantial hike in its budgetary allocation for the forthcoming year as it plans to implement its high-profile programmes, like the Right To Education Act, establish National Education Finance Corporation and 20 new Indian Institutes of Information Technology. The hike in the budget sought for 2011-12 from the finance ministry is likely to be approximately `31,000 crores for higher education department and approximately `40,000 crores for school education department. The budget amount for higher education department was about `16,000 crores and about `33,000 crores for school education department for 2010-11.
Official sources stated that additional money will help the ministry implement the existing and new programmes being proposed by the UPA-2. The higher allocation for the ministry has been proposed as the government plans to give fresh impetus to the education sector in the country. It is understood that as the funds are sought for programmes and initiatives that have a backing of Prime Minister Manmohan Singh the higher allocation sought is likely to be granted by the finance ministry. Sources stated that HRD minister Kapil Sibal is expected to brief finance minister Pranab Mukherjee soon on the budgetary requirements of the HRD ministry. One of the most important proposal for the forthcoming year is the establishment of National Education Finance Corporation. The corporation will provide easy loans and bank guarantees for students seeking higher education loans. The corporation will also provide loans for established as well as establishment of new educational institutions in the country.
The additional funds are expected to help the government increase the gross enrolment ratio in higher education in the country. HRD minister Kapil Sibal has repeatedly pointed out that by 2020 the country needs to have at least 30 per cent GER of present 12.4 per cent.
The major part of expenditure of the school education department is expected to go for funding of state governments to enable them for the implementation of the RTE Act across the country.