The 2014 Union Budget is likely to focus on issues like fiscal consolidation, economic growth, investment and tax policies. Higher-education advocates across the nation are hopeful of a good budget that will benefit academia, faculty and the society as a whole, says Dr Sandeep Goel
The world economy has witnessed a sliding trend in growth, from 3.9 per cent in 2011 to 3.1 per cent in 2012 and 3 per cent in 2013. Despite the global recession and the economic challenges faced, India has successfully managed to sail through this period of crisis. Growth of India’s education sector during the past decade also deserves its share of recognition. The expenditure on education reaching Rs 79,451 crore from Rs 10,145 ten years ago is an evidence of the fact.
The 21st century has brought with it profound challenges to the need of higher education globally. India is no exception to it. As budget is round the corner and that too from a new Government, expectations are soaring high. The Government is expected to present the 2014-15 Budget in the second week of July. It is likely to focus on key issues, like fiscal consolidation, economic growth and investment and tax policies. Higher-education advocates prepare for the same across the country for a ‘good budget.’
low interest on edu loans
Students have their own share of expectations from the budget which would benefit them. The rate of interest on educational loans should be reduced in order to make foreign and domestic education more affordable. The procedure of getting education loan should be simplified. Faculty fraternity expect to have a better education machinery and support system. Society hopes for an overall improvement in the education system. The recent Delhi University’s Four Year Undergraduate Programme (FYUP) fiasco raises the level of expectations further from the new Government for better governance and processes in higher education.
Expectations for higher education from the budget basically revolve around three basic issues— what, why, and whomIJ
Expectations of academia
A large amount of money needs to be allocated to higher education. New universities should be set up and global courses should be offered. Opening of more Government run institutions is a priority. But at the time opening is no solution. Regular mentoring and counselling of these institutions is must. Opening of new IIMs and IITs in the recent past is a prime example of this.
State appropriations for higher education requires a hike, especially for Government run colleges for better imparting of education to all. But, colleges also have to prove to lawmakers that they deserve them. There should be ‘Accountability’ by way of tying performance standards for them.
High education focus
Higher education system of the country is one which keeps the economy going. Therefore, State funding for higher education in totality should be enhanced. It also becomes crucial for the simple reason of growing privatisation of public colleges and universities and a more commercialised research systemIJ Higher education is the largest discretionary item in States’ budgets, and this is the time when Indian economy is gearing up for new challenges in higher education, so state support is vital.
In every corner, you have private colleges mushrooming up without any control. States today have become ‘name partners’ in the private colleges and universities that typically bear their names. This has resulted in deterioration of overall quality of education. There is an urgent need to check this race of higher education ‘privatisation’ and to tighten these institutions by way of ‘enforcement machinery’ at the national level, not on paper but in practice in the budget. Governance and control in higher education is the need of the hour.
Who are the beneficiaries
Students, faculty and society in total! Decline in State funding and support raises the following two questions—
Access & success: How will further tuition increase affect student access to and success in higher educationIJ Unless required need-based financial aid is provided, low-income students and underprivileged groups may be deprived. This issue needs to be taken up in the budget in the form of State financing to Govt. institutions and even quality private institutions.
Financing schemes and loan facility should be introduced for the students to facilitate the learning process. A moratorium period was proposed under Interim budget, 2014-15 for all education loans taken up to March 31, 2009 and outstanding on December 31, 2013. Government will take over the liability for outstanding interest as on December 31, 2013 but the borrower would have to pay interest for the period after January 1, 2014. An amount of Rs 2,600 crore was proposed to benefit nearly 9 lakh student borrowers. This can be continued for future.
Impact on faculty: Over the next decade, increasing number of faculty will be needed, both to replace the large numbers of expected retirements and to teach the growing numbers of students.
The conflicting forces of budget constraints and the need for new faculty are surely going to affect the hiring of new faculty at different positions. In this environment, both public and private institutions may hire an increasing proportion of incompetent faculty at lower salaries than quality faculty.
Faculty is the key resource in any education system. There has been a huge faculty crunch in the institutes, including instates of excellence. Getting right faculty is a universal problem. Every year, thousands of faculty are appointed but only one-tenth are retained at the end of the year.
We talk of faculty freedom, conducive academic environment and their learning and growth. But the most important factor is completely ignored— ‘Due recognition to the faculty for their work, calibre, output and performance.’
Mixing apples with rotten oranges can never fill this void, unless as management says, there are right men on the right job.
Every Government focuses on building, exteriors but need of the hour is to focus on people. This is the time that budget should come out with initiatives for faculty at the National level in terms of resources, incentives and support system for retaining and attracting the talent in academia.
On a holistic note, the requirement is of measures that can stimulate the growth of the economy and take it to around 7-8 per cent and higher education can be a stimulus in this direction of economic growth of the country.
The writer is professor of Finance at MDI, Gurgaon.