Budget from Higher Education Perspective

By Mohit Choudhary|Updated : February 2nd, 2021

UGC NET Exam is conducted twice a year by NTA. There are ten units in Paper-1 and each unit has equal weightage in the examination. Most Important Topics in UGC NET Environment, Logical Reasoning, Teaching Aptitude, Research Aptitude, Communication, ICT, Higher Education.

The first ever digital Union Budget ( Budget 2021), Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman stated that India’s fight against COVID-19 continues into 2021 and that this moment in history, when the political, economic, and strategic relations in the post-COVID world are changing, is the dawn of a new era – one in which India is well-poised to truly be the land of promise and hope.

This is Sitharaman's third budget under the National Democratic Alliance (NDA) government led by Prime Minister Narendra Modi. In a significant departure from the tradition, this year’s Budget is unique as it is paperless. The papers did not get printed for the first time since Independence, due to the COVID-19 pandemic. Last year, the Finance Minister had ditched the leather briefcase for a traditional “bahi khaata” — or red, handmade ledger — saying that it was “high time we move on from the British hangover, to do something on our own”.

The Union Budget 2021-22 proposals rest on following Six pillars:

  • Health and well-being

  • Physical and financial capital and infrastructure

  • Inclusive development for aspirational India

  • Reinvigorating human capital

  • Innovation and R&D

  • Minimum government and maximum governance.


  • The Union Finance Minister announced a total expenditure estimate of Rs 93,224 crore for education in 2021-22.
  • This consists of Rs 54,874 crore for the Department of School Education and Literacy and Rs 38,350 crore for the Department of Higher Education.
  • The Union Government decreased the budgetary allocation for the Ministry of Education by 6.13% when compared with the allocation in 2020-21. 
  • Rs. 1,500 crores opposed for scheme to promote Digital Modes of Payments.

Highlights of the education sector from the Budget 2021

These are important for your UGCNET examination Paper 1, Higher Education Section.

Finance Minister Nirmala Sitharaman on Monday marked the start of post COVID world in her budget speech, by quoting “Rabindranath Tagore” at the beginning of the Union Budget 2021, -- she termed as the ''dawn of a new era".

  • Central University in Leh

For accessible higher education in Ladakh, the Finance Minister proposed to set up a central university in Leh

  • 100 new Sainik schools
    100 new Sainik schools will be set up in partnership with NGOs, private schools, and states.

The private-public partnership schools will help the expansion of the Sainik School network but this time the financial burden will be shared by the government and private players.

  • Higher Education Commission of India
    Legislation to be introduced to setup Higher Education Commission of India as an umbrella body with 4 separate vehicles for standard-setting, accreditation, regulation, and funding

  • Strengthening of schools as per NEP
    The Union Cabinet approved NEP 2020 on July 29. Now under the NEP, more than 15,000 schools will be strengthened.

  • A National Digital Educational Architecture (NDEAR) will be set up to support teaching and learning activities.
    The digital architecture set up under this will also help in educational planning, governance and administrative activities of the Centre and the States/ Union Territories.
  • National Initiative for School Heads and Teachers for Holistic Advancement (NISTHA) will train 56 lakh school teachers in 2021-22 digitally

  • Nine cities will have a “higher education cluster" each for better coordination among institutions and aiding collective growth without infringing their individual autonomy.

The higher education clusters will be “net positive" in terms of 

  • better coordination
  • Resource sharing, and 
  • collaboration for teaching learning
  • Research and development (R&D).

The move will allow good private and public institutions in a city to collaborate and edge out the existing silos between the institutions.
For example, 40 higher education institutions and universities in Hyderabad can learn from each other and improve education outcomes.

  • 15,000 schools to be converted to “exemplar schools" in 2021-22.
    The 15,000 exemplar schools will create a pool of quality schools and may be helpful in rolling out the new education policy in a phased manner in the coming academic session.

Finance Minister Nirmala Sitharaman proposed an outlay of Rs. 50,000 crore for the National Research Foundation spread for the next five years. 
It will ensure that 

  • overall research ecosystem of the country is strengthened with
  • focus on identified national-priority thrust areas.

National Language Translation Mission (NTLM)

A new initiative called National Language Translation Mission (NTLM) has been proposed that will 

  • Digitise the wealth of governance-and-policy related knowledge on the Internet and 
  • be made available in major Indian languages.

Scheduled Castes and Scheduled Tribes Welfare

  • 750 Eklavya model residential schools in tribal areas:
  • Unit cost of each school to be increased to Rs. 38 crore
  • For hilly and difficult areas, to Rs. 48 crore
  • Focus on creation of robust infrastructure facilities for tribal students
  • Revamped Post Matric Scholarship Scheme for welfare of SCs
  • Rs. 35,219 crore enhanced Central Assistance for 6 years till 2025-2026
  • 4 crore SC students to benefit

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We hope you all understood the Budget from Higher Education Perspective for Paper-1 for UGC NET Exam 2023.

Thank you, Team BYJU'S Exam Prep.


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