Rs One Lakh crore allocated in education Budget 2018

Finance minister Arun Jaitley said that education is a priority area for the government and allocated Rs85,010 crore for education budget 2018 starting 1 April.

The budget allocation for 2018-19 is, however, less than 4% higher than the revised budget estimate of the current year. The 2017-18 budget estimate had pegged an outlay of Rs79,685.95 crore, which was later revised to Rs81,868 crore. Also the prevalent 3% education cess will be replaced with a 4% education and health cess. This will help the government garner Rs11,000 crore per annum from taxpayers.

From a thematic point of view, the Union budget focused on two key areas of education—integration and fiscal accountability.


The human resource development ministry is working on a plan to integrate several flagship school schemes including the Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and teacher education. As of now, SSA and RMAS have a joint mandate to make school education universal.

On fiscal accountability part, Jaitley said the country is looking to spend Rs1 trillion to revitalize the infrastructure of higher educational institutions.


In his Budget 2018 speech, Jaitley unveiled a new scheme called Revitalising Infrastructure and Systems in Education or RISE.

The RISE scheme will be financed via a restructured higher education financing agency (HEFA) that is functioning for the last two months as a non-banking financial company. It aims to lend low-cost funds to government higher educational institutions. Right now HEFA is looking to raise Rs20,000 crore and Thursday’s announcement hikes this number to Rs1 trillion.

While HEFA was granted a budgetary allocation of Rs250 crore in fiscal year 2018, in FY19, the lending body will be provided a budget of Rs2,750 crore.

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