Budget 2022: Education sector seeks higher allocations, tax concessions

The education sector is expecting from the Union Budget 2022 a series of benefits ranging from GST concession to low-cost education infrastructure loans and an expansion of the income tax provision under Section 80C for deduction of education expenses.

To implement the new National Education Policy (NEP), the education sector is seeking support for building infrastructure, a corpus for mainstream education, access to better technology for rural areas, and ease of doing business for ed-tech players.

Also Read | Budget 2022: Key financial terms you should know

Experts will have an eye on the budget allocation for education  and the government’s vision for the sector in 2022-23. Last year, the government reduced its allocation towards education in the annual budget by 6%, amounting to a total allocation of Rs. 93,223 crore, against Rs. 99,311 crore in the year before that. The 6% cut was attributed to fund allocation towards healthcare and other emergency services.

Also Read | Budget 2022: Infra sector expects investment push for NPE, Make-in-India

According to Harivansh Chaturvedi, director of Birla Institute of Management Technology (BIMTECH), public institutions are looking for bigger budget allocations and the private sector is seeking low-cost loans to broaden  investment in new departments, facilities, and  faculty. 

Chaturvedi also said that education is a feeder sector of the economy and creates millions of job opportunities. For two years, the sector is struggling and is expecting handholding and a clear policy path from the budget.

Also Read | Budget 2022 likely to rein in inflationary expectations

Direct Benefit Transfer (DBT) for poor students for skill training and competitive exam preparation could be a big new initiative like the LPG initiative, said Satya Narayan R, founder, and chairman of CL Educate, a listed education company. To meet the gross enrollment ratio (GER) and higher education quality goals, there should be  accelerated implementation of the mega-campuses programme.

Also Read | Budget 2022: Health sector seeks investment push

Maninder Singh Bajwa, CEO, and founder, iScuela, expects the budget to make some announcements on regulation and the framework to help the ed-tech sector flourish. He added that there should be increased support towards small and medium enterprises. “We are hopeful that there will be various initiatives accelerating e-learning programmes across the nation. This will slowly but surely go a long way in bridging the digital divide” he said.  

Also Read | Budget 2022: Online gaming industry seeks regulatory clarity and lower tax rates

According to Rajiv V. Shah, a professor of economics at TA Pai Management Institute in Manipal,  a parent is allowed to deduct payment of school tuition fees for up to two children subject to the overall deduction of Rs 1.5 lakh in sections 80C, 80CCC and 80CCD. The government should allow full deduction of tuition fees of up to two children under a separate section that does not fall within the limit of Rs 1.5 lakh and support fee-paying parents and the education sector.

Also Read | Budget 2022: MSMEs seek lower taxes, easier compliance

He added that considering the current scenario, the scope of payment could be expanded to part-time and distance education also. Fees paid for the education of self or spouse should also be considered.