Interim Budget 2024: Management institutes give mixed response

According to the budget allocations, this year, IIMs’ Gross Budgetary Support (GBS) is INR 12 crore compared to last year’s INR 15. 17 crore. The interest under the HEFA Loan has also gone up to INR 60 crore. This was INR 29.79 crore in the year 2022-23.

Interim Budget 2024: Management institutes give mixed response

Interim Union Budget 2024 release by Finance Minister Nirmala Sitharaman revealed the allocation of INR 212.21 Crore to IIMs. While the allocation to IIMs was absolutely halved last year, this year, the government has further decreased the allocation for the Indian Institute of Management. With the allotment of over INR 124638 crore to the two departments of the education ministry, the budgetary allocation witnessed an increase of INR 11,738.53 crore.

According to the budget allocations, this year, IIMs’ Gross Budgetary Support (GBS) is INR 12 crore compared to last year’s INR 15. 17 crore. The interest under the HEFA Loan has also gone up to INR 60 crore. This was INR 29.79 crore in the year 2022-23.

With the release of the Interim Budget 2024, let us take a look at how experts from the management industry reacting to the Union Budget 2023:

Promoting STEM education reflects focus on nurturing skilled workforce

IIM Indore Director, Professor Himanshu Rai said, "The interim budget has demonstrated a significant commitment to advancing education, particularly for the youth, with substantial investments in skill development and higher education infrastructure. The emphasis on increasing female enrolment by 28% and promoting STEM education, reaching 43% enrolment, reflects a focus on nurturing a skilled workforce for the future. Initiatives like PM SHRI schools ensure quality education and the development of well-rounded individuals. Furthermore, the expansion of Skill India, training 1.8 crore youths and establishing new ITIs, alongside the establishment of prestigious institutions, including IITs, IIITs, IIMs, and AIIMS, will provide ample opportunities for youth empowerment and economic growth."

43% of STEM course enrollees are female, reflecting strides in gender inclusivity

Dr. Asmita Chitnis, Director, SIIB Pune said, "The Indian government's Budget 2024 initiatives for education are noteworthy. With a substantial allocation of Rs. 1.12 lakh crore, including Rs. 44,095 crore for Higher Education, a skilled workforce is prioritized. The observed 28% increase in female higher education enrollment over a decade underscores efforts towards inclusivity. The commendable achievements of the Skill India Mission, training 1.4 crore youth and upskilling 54 lakh individuals, are instrumental in bridging skill gaps. Notably, 43% of STEM course enrollees are female, reflecting strides in gender inclusivity. These measures promise a brighter future for India's youth and signify a positive trajectory for national development."

Populism has been shunned while prudence has been observed

Dr. V.P. Singh, Director - PGDM and Professor - Managerial Economics & Statistics, Great Lakes Institute of Management, Gurgaon, said, "This budget exudes NDA government’s confidence while going into the general election in a few months from now. Populism has been shunned while prudence has been observed. The Ram temple wave has swayed the political dividend in favour of NDA which in turn gives the government some room to bring in fiscal discipline and boost economic development. A government maintaining fiscal discipline as per the envisaged glide path should be seen as a great virtue. Despite the fiscal discipline the government delivered the fastest GDP growth rate among large economies of the world. In order to maintain the strong growth momentum, the capex has been increased to a record of Rs 11.1 trillion. This comes to nearly 10 per cent increase from last year’s budget. As expected, the growth in capex has been slowed and more emphasize being given to agents of financial inclusivity - skill building; women; street vendors; farming community and handicapped. Electronic payment systems move the money faster. Three railway economic corridors - Energy, Minerals and Cement; Port connectivity; and high traffic density corridors will move goods and people faster. Together, when money, material and man travel faster the economic development happens faster. Emphasis on logistics is one of the pillars through which the government wishes to make India ‘viksit’ by 2047. "

Budget focuses on achieving Viksit Bharat by 2047 mission

Professor Mousumi Bhattacharya, IIM Shillong said, "In the interim budget for FY 2024-25  the major income tax slab remains unchanged. The budget focuses on achieving the mission of “Viksit Bharat” by 2047 with a focus on infrastructural development and about 2 crore more houses under the Pradhan Mantri Awas Yojana - Gramin ( PMAY-G). So homes will become much more affordable. In order to encourage the private sector to scale up research and innovation, a corpus of Rs 1 lakh crore will be established with a 50-year interest-free loan. This is a welcome move for the millennials.  The budget also unveiled a comprehensive plan to achieve a Net  Zero Target by  2070."

Promises to boost overall economic growth

Nidheesh Saxena, Sr Director - Admissions, Gitam Deemed to be University said, "Despite limited allocations for education, the focus on promoting key sectors in the interim budget promises to boost overall economic growth. The Skill India Mission's efforts to train 14 million young, along with the upskilling and re-skilling of 5.4 million youth, complemented by the establishment of 3,000 new Industrial Training Institutes (ITIs), will be an integral part of strengthening the PLI and Make in India initiatives.

Budget guarantees emphasis on governance, development, & performance

Prof. Abhradeep Maiti, Chairperson – Admissions, Economics, IIM Kashipur said, "Declaring that the Skill India Mission had been successfully adopted, the interim budget 2024 guaranteed that the government would place equal emphasis on governance, development, and performance. The mission has successfully trained 1.4 crore youth, upskilled and re-skilled 54 lakh youth, established 3000 new ITIs, 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS, and 390 universities. With the union government placing a strong emphasis on funding the National Research Fund and establishing the Higher Education Commission to improve ed-tech resources like digital infrastructure, digital repositories, and hybrid models of in-person and online learning to meet the growing demand, the higher education sector has experienced robust growth."

Number of women enrolled in higher education has increased by 28%

Dr Prabina Rajib, Director at Birla Institute of Management Technology (BIMTECH), "Declaring 2024–25 to be a "golden year" for tech enthusiasts, the finance minister announced in Interim Budget 2024 the government's priorities of empowering women, youth, farmers, and the impoverished. In addition, I'm pleased to see that, in the last ten years, the number of women enrolled in higher education has increased by 28%. The last three years have seen a rise in the amount of money allocated to the education sector, particularly to 2023, which was awarded a staggering grant of Rs. 44094.62 crore for higher education in order to support multi-mode access to education. Budget 2022 and 2023 aimed to advance upskilling and reskilling, technology integrated teacher training, and the incorporation of digital, online, and on-air education. Additionally, they established Centers of Excellence in some of the top universities, enabling futuristic young minds and creating a world-class education ecosystem. While Budget 2021 focused on making education accessible, available, and affordable for everyone, the budgets of 2022 and 2023 focused on incorporating digital education.

Read More:

• Interim Union Budget 2024 Allocation for IIMs further decreased to INR 212.21 Crore