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Sunday, July 6, 2025 6:37 AM

Education Funding

Tamil Nadu-Centre Tussle Over NEP and Education Funds Escalates

The debate over the National Education Policy (NEP) 2020 has intensified, with Tamil Nadu strongly opposing the Centre’s insistence on implementing the policy in its entirety. Union Education Minister Dharmendra Pradhan recently stated that unless Tamil Nadu fully accepts the NEP, funds under the Samagra Shiksha scheme—amounting to over ₹2,158 crore—will not be released. This remark, made at the Kashi Tamil Sangamam in Varanasi, has triggered sharp reactions from Tamil Nadu’s political leadership. Tamil Nadu School Education Minister Anbil Poyyamozhi responded by accusing the BJP-led central government of “paving the way for another language war.” He questioned why Tamil Nadu, which has successfully followed a two-language policy for decades, should be forced to adopt the three-language formula. Citing former Chief Minister CN Annadurai, he asserted that the demand for Tamil Nadu’s rightful share of funds was not a request for alms but a constitutional entitlement. The state government highlighted that over 4 million students and 32,000 teachers rely on these funds, with Tamil Nadu itself spending ₹76 crore per month on teacher salaries and ₹400 crore annually on the Right to Education (RTE) scheme. Several schemes for girl child education have also been affected due to funding delays. The Tamil Nadu government has argued that withholding funds to push NEP implementation suppresses dissent and reignites the decades-old language debate in India. Chief Minister MK Stalin strongly criticized the Centre, calling Pradhan’s stance “rash blackmail” and warning that Delhi must be prepared to face Tamil Nadu’s resistance. Finance Minister Thangam Thennarasu also questioned the conditional nature of central funds, pointing out that Tamil Nadu contributes 9% to India’s GDP without any such stipulations. Anbumani Ramadoss, president of the Pattali Makkal Katchi (PMK), took a more balanced approach, stating that the Centre is duty-bound to disburse these funds irrespective of NEP compliance. He emphasized that NEP implementation and financial allocations should remain separate matters. The Centre’s rigid stance on enforcing NEP, particularly through financial coercion, has been widely criticized as an overreach that disregards federal principles. The debate is now at the heart of a larger battle over education policy, language rights, and state autonomy in India. Source: Hindustan

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Government Allocates ₹15.27 Lakh Crore for Major Sectors in Union Budget 2024

Finance Minister Nirmala Sitharaman presented her seventh Union Budget yesterday , allocating ₹15.27 lakh crore for major sectors such as defense, rural development, social welfare, and commerce. This budget marks the first of Prime Minister Narendra Modi’s third term. Key Allocations and Expenditures Defense Allocation: ₹4.54 lakh crore, a significant decrease from ₹6.21 lakh crore in the interim budget. Capital Outlay: ₹1.62 lakh crore for military capital expenditures, including weapons, ammunition, aircraft, and warships. Rural Development Allocation: ₹2.66 lakh crore. MGNREGA Funding: Increased from ₹60,000 crore in FY24 to ₹86,000 crore in FY25. Agriculture and Allied Activities Allocation: ₹1.52 lakh crore. Focus: Sustainable practices, digital infrastructure, and increased production. Home Affairs Allocation: ₹1.51 lakh crore. Specific Allocations: ₹42,277 crore for Jammu and Kashmir. ₹5,985 crore for Andaman and Nicobar. ₹5,862 crore for Chandigarh. ₹5,958 crore for Ladakh. Education Allocation: ₹1.26 lakh crore. Additional Allocation: ₹1.48 lakh crore for schooling, employment, and skilling. IT and Telecom Department of Telecommunications: ₹1.16 lakh crore. Ministry of Electronics and Information Technology: ₹22,000 crore. Health Allocation: ₹89,287 crore. Pharmaceutical Industry: ₹2,143 crore. Notable Announcement: Exemption of three more cancer medications from customs duties. Energy Allocation: ₹68,679 crore. New and Renewable Energy: ₹19,100 crore. Solar Power (Grid): ₹8,500 crore. Government Revenue and Expenditures Revenue Sources: Borrowings and other liabilities: 27%. Income tax revenue: 19%. GST and other taxes: 18%. Corporation taxes: 17%. Expenditures: States’ share of taxes and duties: 21%. Interest payments: 19%. Central sector schemes: 16%. Subsidies, pensions, and other payments: 19%. Additional Highlights Custom Duty Reductions: Three cancer drugs and two components for manufacturing X-ray machines. Tax Regime Tweaks: Raised standard deduction from ₹50,000 to ₹75,000, saving salaried employees up to ₹17,500. First-Time Professionals: One month’s salary as Provident Fund contribution for first job holders, benefiting 210 lakh youngsters. Capital Gains Exemption: Limit raised to ₹1.25 lakh per year. Angel Tax Reduction: For all investor classes. This budget reflects the government’s priorities across various sectors, balancing between infrastructure development, social welfare, and fiscal prudence.

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Interim Budget 2024: The Lingering Debate on Education’s 6% GDP Share

Blog on Education

As the nation eagerly anticipates the presentation of the Interim Budget 2024 on February 1, the age-old debate on allocating 6% of Gross Domestic Product (GDP) to the public education system has once again taken center stage. This longstanding discussion traces its roots back to the Kothari Commission’s recommendation in 1964-66, underscoring the need to prioritize education and allocate a significant portion of the Gross National Product (GNP) towards it. The Kothari Commission set the ambitious 6% target after studying other nations, including the United States, Japan, and the then Soviet Union (now Russia), all of which invested more than 6% of their GNP in education. Despite being a recurring theme in every budget announcement and election manifesto for the past 60 years, India has struggled to achieve this target. The National Education Policy 2020 echoes this sentiment, emphasizing the collaborative effort of the central and state governments to reach the 6% GDP mark at the earliest. However, recent years have witnessed a decline in the allocation to the public education system. Protiva Kundu, from the Centre for Budget and Governance Accountability, highlighted the consistent decrease or stagnation in the union government’s spending on education, currently standing at 4.41% of the GDP, with only one-fourth coming from the central government and the remaining three-fourths from state governments. Anjela Taneja of Oxfam International pointed out that education is not a top priority for the government, evident in their budget allocations. With the 2024 general elections approaching, the question arises: will the 6% allocation debate remain relevant amidst the political posturing? The historical context of the 6% GDP target reveals its genesis in the Kothari Commission’s recommendation. Subsequent committees, including the Tapas Majumdar committee in 1998-99, reiterated the importance of additional resources to achieve universal school education. However, the fixation on 6% as a benchmark for investment in education has persisted globally, emphasizing its significance. Subir Shukla, from Ignus ERG Education Resource Pvt Ltd, cautioned against the challenges of policy implementation, citing the gap between theoretical discussions and practical contingencies. Avani Kapoor, of the Centre for Policy Research, stressed the need to reevaluate the basis for education budget calculations, focusing on the teaching-learning process rather than infrastructure. Funding challenges persist, with Shukla highlighting ineffective utilization of released funds and delays in disbursement. Anil Swarup, former secretary of the department of school education and literacy, suggested innovative funding methods, such as taxing private schools to support public education. However, Kundu emphasized the need for a level playing field before exploring innovative solutions. Looking ahead to the Interim Budget 2024, expectations are mixed. Kundu predicts an implementation budget with a potential redistribution of resources across different education sectors. Kapoor believes the government’s focus will likely center on flagship schemes such as housing and Jal Jeevan Mission, as past data indicates a prioritization of these areas over education. Taneja remains cautiously optimistic, hoping for increased investment and progress towards the envisioned allocation in the National Education Policy. Despite international obligations, the government’s commitment to the NEP could pave the way for necessary financial allocations to realize its vision. The above data is taken from the recent report published by career 360.

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