Union Budget 2023 Expected to Give EdTech Sector Higher Rebate, Focus on Skill Courses
The EdTech sector is seeking higher tax rebates, increased budget allocation, and focus on skill courses in the upcoming Union Budget 2023. The Union Budget 2023 will be presented on Feb 01.
The Union Finance Minister Nirmala Sitharaman will present the Union Budget 2023 on Feb 01, 2023. The EdTech sector is anticipating significant transformations and substantial reforms in terms of tax rebates and support from the government in this year's budget. The education sector expects the push from the government by decreasing the tax on educational programmes and promoting the "Internationalisation" of Indian education. Setting up the digital library ecosystem and focusing on employment-driven career programmes are some substantial changes, Edtech sectors hope from Union Budget 2023.
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Union Budget 2023 - EdTech Sector Expectations
The EdTech sector eyes the upcoming Union budget for enhanced support for e-learning and facilitating students with easy education/study loans. Furthermore, the following are some significant expectations of the EdTech sector from Union Budget 2023:
- Increased Budget Allocation: The increased budget allocation demand is a long and persistent demand of the education sector. The National Education Policy (NEP) suggests that there should be a 6% investment in education from the country's overall GDP. However, according to the economic survey, only 3.1% was allocated to the education sector in the financial year 2021-22. With Union Budget 2023 around the corner, the education sector expects a higher budget allocation.
- Lowering of GST on Educational Services: The EdTech industry is taxable at the GST rate of 18%. To promote and encourage affordable higher educational services, the government should lower the GST rates on educational services and promote public-private partnerships.
- Enhanced Support for E-Learing: With the continuous rise in e-learning platforms, it is very hard for middle-class students to cope with technology upgrades. The union budget 2023 should focus on the enhanced investment in digital teaching and supporting students by making electronic gadgets more affordable
- Easy Education Loans: The union budget 2023 should focus on facilitating education and study loans for students from low socio-economic backgrounds. Lowering the interest rates on student loans will be a crucial step in enhancing the growth of the education sector.
- Increased Funds for Research Students: According to a report, 42.8 percent of researchers cite the lack of funding as the main problem. 14.6 percent of those who received fund partially, and 28.2 percent reports that they received no money at all throughout the pandemic. The upcoming union budget for this financial year is expected to solve the funding problem of research students enrolled in the higher institutes across the country.
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