India: Budget proposal for the financial year 2016-2017
The planned budget for the financial year 2016-2017 was recently announced by India’s Finance Minister, Mr Arun Jaitley. With elections to big states coming up in the next twelve months, there was a strong thrust towards spending in rural India.
The agenda for the Government is to ‘Transform India’ and the budget proposals have been built on 9 distinct pillars, one of which is Education, Skills and Job Creation, where the intention is to make India a knowledge based and productive society.
Our Senior Thematic Advisor, Dr. Indraneel Ghose has summarised the key features of the budget in the areas of education, research and innovation. Take a look!
Highlights of the budget in the areas of education and skill development include:
- increasing focus on quality in primary education
- Providing a regulatory architecture to ten public and ten private institutions to emerge as world-class Teaching and Research Institutions
- Setting up a Higher Education Financing Agency to be set-up with initial capital base of INR 1000 Crores (CHF 148M approx.)
- Setting up of 1500 Multi Skill Training Institutes
- Setting up a National Board for Skill Development Certification in partnership with the industry and academia
- Promoting Entrepreneurship Education and Training through Massive Open Online Courses
As far as budgetary allocations are concerned the science, technology and environment sector has been allocated INR 20,926 crores (CHF 3.1B approx.), an increase of about 17% over the previous year.
For various ministries related to education, research and innovation the allocations are as follows:
- Higher education: INR 15,245 crores (CHF 2.2B approx.), an increase of about 14% over the previous year
- Atomic energy: INR 15,762 crores (CHF 2.3B approx.), an increase of about 17.5% over the previous year
- Space: INR 6000 crores (CHF 886M approx.), an increase of about 7.1% over the previous year
- Science and technology: INR 8100 crores (CHF 1.2B approx.), an increase of about 12.5% over the previous year
- Earth Sciences: INR 1200 crores (CHF 177M approx.), an increase of about 18.5% over the previous year
- Environment and climate change: INR 1143 crores (CHF 169M approx.), an increase of about 18.6% over the previous year
- Health research: INR 750 crores (CHF 111M approx.), an increase of about 12.3% over the previous year
- Skill development and entrepreneurship: INR 1700 crores (CHF 251M approx.), an increase of about 70% over the previous year
The increase in allocation for these sectors has been less than the general increase in he proposed outlays for the entire budget, which grew by 21.2% over the previous year.
For the new Start up and stand up scheme, which is intended to create the next generation of Indian entrepreneurs, a sum of INR 1100 crores (CHF 162M approx.) has been allocated. These startups will be eligible for a 100% deduction of profits from taxes for 3 out of 5 years for startups set up between April 2016 and March 2019. In addition, they will pay only 10% tax on income from worldwide exploitation of patents developed and registered in India by a resident.
These figures have been taken from the official website of the budget: http://indiabudget.nic.in. swissnex India and its employees assume no responsibility for errors and omissions related to the data, calculations, or analysis contained herein and in no event will swissnex India be liable for direct, special, incidental, or consequential damages arising directly or indirectly from the use of this information.