Government Announces Major Financial Support for Education and Skill Development in 2024-25 Budget

Union Finance Minister Nirmala Sitharaman announced financial support for loans up to Rs 10 lakh for higher education, e-vouchers for one lakh students, and interest subvention. The 2024-25 budget allocates Rs 1.48 lakh crore for education, employment, and skill development. Upgrading 1,000 ITIs and revising the model skill loan scheme were also highlighted.

Union Finance Minister Nirmala Sitharaman declared government financial support for education loans up to Rs 10 lakh in domestic institutions during the 2024-25 budget presentation on Tuesday. Additionally, one lakh students will receive e-vouchers with a 3 percent interest subvention annually.

The budget allocates Rs 1.48 lakh crore for education, employment, and skill development sectors. Key initiatives include upgrading 1,000 Industrial Training Institutes (ITIs) under a hub-and-spoke model to meet industry skill requirements and revised model skill loan schemes.

Sitharaman revealed that the revised skill loan scheme will offer loans up to Rs 7.5 lakh with government guarantee, benefiting 25,000 students annually. Furthermore, a new centrally sponsored scheme aims to skill 20 lakh youth over five years.