The budget 2022 season relies on people and similar to every year the experts from the sectors are sharing their list of wants within the Finance minister towards her acknowledgement. The education industry requires more attention because it influences the development and prosperity of the country.
In the former budget, the government has made a decision to proceed towards the fraction of funds from education to make the infrastructure of healthcare effective. In the current year, people hope that the government would furnish higher allocation to education to bridge the gap of the former year.
The school was closed in the pandemic which results in job loss for teachers and staff, also the education discontinuity for children from poor families. Despite various government supports the schools need to stop functioning because of the non-availability of effective devices, network problems, and the teacher’s inability to teach their online students. For the private school’s government furnished the solutions of reduction in the fees that negatively influenced the school’s financial structure also some schools have invested harder to provide the services regarding e-learning infrastructure, furnish training towards teachers and paying the staff salaries.
On a good note, our existing position is effective to fight the pandemic and other glitches also we would draw our focus back to education. Below are the mentioned points that are needed to consider:
GST Exemption on School Rentals
In the countries such as the UAE, the UK, and the US, schools get privileged from GST or are permitted to avail of the refund of the GST furnished. However, in India the provided high cost of land, various schools trusts pose a long-term lease through the 3rd party and furnish the lease rentals towards the formerly decided duration when they do not own land. Under GST the rent gets taxed and the school trusts need to furnish it to the owner of the land. However, opposite to the other industries, the schools would not able to avail the credit for that because the fees they accumulate from the students get privileged from GST. no option is then left for the schools excluding increasing the fees which is the major load on the parents.
Low-interest Rates on Loans
The education industry must be on the priority for lending the loan. In the pandemic, the school fees get reduced to support the parents who lose their jobs, permit EMI payments for them. However, schools have not ignored their responsibility towards teachers and non-teaching staff and had to pay them salaries. To carry on the education service the schools are needed to invest in the tech-enabled infrastructure that would not make any surplus as the schools come beneath the not-for-profit category.
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From this scenario, banks are not interested in giving them loans as seeing their repayment inability. Thus the school’s trusts should get permitted to take up the loans at a concessional interest rate.
RTE (Right to Education) Repayments
The same is a concern to the state because of lesser funds in the state treasury the schools are needed to wait multiple times for RTE reimbursements. Seeing the pandemic it is a request that the central government provide special funds to support states for RTE repayments so that schools could prevent the issues of funds.
Youth empowerment is the key towards the growth of the country and to perform that we are liable to furnish a good educational infrastructure whatever be the condition.
