Union Budget 2021-22 Expectations for Education: One of the areas that has changed the most due to the coronavirus epidemic is the education sector. Traditional learning has now changed to digital learning. Traditional learning has helped in the development of edtech start-ups and existing companies through the methods of transition to digital learning and is expected to continue. In such a situation, the allocation for the education sector in the Union Budget should be increased by 7-8 per cent as compared to last year.
Last year, schools, colleges and institutes were completely closed in lockdown due to Coronavirus epidemic. After which, students and teachers had no other option but to go into the digital medium. Both teachers and students adopted methods of online education. It opens new Horizon for edtech start-ups. NEP 2020 focuses on extracurricular and vocational learning with no separation from academic streams across the country. According to NASSCOM, India’s EdTech space will be $ 350 million by 2022.
The edtech sector is currently taxed at a rate of 18 percent, which can be reduced in the budget. This enabled Quality Digital Education to be a better option for students from all sections of society. The Adtech sector has seen the highest funding during this epidemic in recent months, which is a result of increased awareness. Lower taxation can help in expansion of edtech sector and bring revolutions in the education system.
Education budget priority
Although the institutes have adopted the online learning system better, the general situation in the education sector is still far away. Despite the efforts being made by private companies and the government, we still lack a uniform solution for all students. Because e-learning is still a challenge for students coming from socio-economically weaker sections of the society. The education sector should be given more priority in the Union Budget 2021 so that the effects of COVID-19 can be normalized.
Underprivileged students may be given opportunities to adapt to more learning tools and digital learning methods. Strong platforms should be developed and curated for such students. In addition, problems such as problem-solving, creativity, and computational thinking are important for 21st-century children to face such a problem in the future. Regular classes of basic education should be in the focus of the government. Keeping all these points in mind, the Union Budget 2021 should be inclined towards the education sector.
The importance of MSMEs on the Indian economy is evident from the fact that MSMEs provide a lot of employment and attract foreign investment. They also have a significant contribution to GDP. There are around 63 million start-ups in India (according to MSME ministry data), employing about 120 million people and contributing 45 per cent to exports. In the Union Budget 2021, the taxation scheme for MSMEs should be revised and reduced, as it will provide more opportunities for MSMEs and start-ups to grow.
In addition, the loan approval process for MSMEs should be simplified, and start-ups and collateral-free loans should be given to MSMEs. Record-breaking funding was seen in the EdTech domain last year, and the sector should be included under the beneficial scheme for MSMEs. Because it will provide a better eco-system to scale start-ups and promote quality education.