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Education and Healthcare: Budget Allocations and the Impact on Marginalized Communities


Implications for Gen Z of Marginalized Communities

Why it matters: The Union Budget for 2025-26 has allocated ₹1.28 lakh crore to education, representing 2.6% of the total budget, and ₹90,171 crore to healthcare, accounting for 1.9% of the total budget. While these figures surpass previous years' estimates, they fall short of national policy targets.

Driving the news: The National Education Policy 2020 recommends spending 6% of GDP on education, and the National Health Policy of 2017 aims to boost public health expenditure to at least 2.5% of GDP by 2025.

The big picture:

  • Education: Despite increases, funding remains inadequate, with marginalized communities disproportionately affected. Limited resources result in overcrowded classrooms, insufficient teaching materials, and inadequate infrastructure, hindering academic performance and future opportunities.

  • Healthcare: Underfunded systems struggle to provide comprehensive services, particularly in rural and underserved areas, leading to unmet healthcare needs and poorer health outcomes. Preventive care and health education are limited, increasing rates of preventable diseases.

Gen Z Impact:

  • Education: Insufficient investment in skill development programs limits access to vocational training and job-oriented education, crucial for improving employability and economic independence among marginalized youth.

  • Healthcare: Marginalized communities face systemic barriers to quality healthcare services, perpetuating cycles of poverty and social exclusion.

What to watch: The government continues to focus on expanding programs like the National Health Mission and increasing funding for education, particularly in skill development and infrastructure. However, the share as a percentage of the total budget or GDP has not seen proportional increases to meet these policy goals.

Conclusion: While there have been increases in absolute terms for both education and healthcare, the percentages of the total budget allocated to these critical sectors remain below the targets set by national policies. The focus should be on harnessing more resources to benefit marginalized communities and ensuring sustainable development through improved access, quality, and equity in education and health services.

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