Published On: Wed, Mar 14th, 2012

Experts expect incentives to private firms for investing in Education : Budget

EduShine Academic Search

With a lot of economists, industrialists and experts emphasising the need to improve the provision and standards of education in the economy, the Union Budget 2012 is being looked at provide a major boost in that direction.

The government has set a huge target of achieving a Gross Enrollment Ration (GER) of 30% by 2020 from a GER of 12% recorded in 2010. According to DTZ, this target will need significant participation from private sector. DTZ has recommended provision of incentives to private players for development of higher education infrastructure.

According to DTZ the government should provide a road map which gives clarity on quantum of investments in each field of education. The Union Budget 2012 should also look at the passage of Foreign Education Bill.

On the issue of tax relief for promoting education, FICCI has recommended one for Universities & Colleges who opt for Capacity Building of Higher Education (HE) Staff. FICCI has highlighted that there is currently a shortage of 70,000 faculties in Higher Education Institutions.

FICCI has also expressed the need to promote specific scheme for skill development of university teachers and for the day to day academic and research activity. The tax relief could be 50% of the amount spent on capacity building of their staff.

Need for creation of skilled personnel for global requirements has also been highlighted by the chamber. For this purpose FIICI feels that any Educational service provider opening a skills Centre in a backward area should be given an incentive like exemption from income tax for 5 years.