The budget has increased total allocation for the education sector by 20 per cent from Rs28,674 crore in 2007-08 to Rs34,400 crore in 2008-09.

Of this, Sarva Shiksha Abhiyan (SSA) will get Rs13,100 crore; the mid-day meal scheme will be provided Rs8,000 crore; and secondary education will be allocated Rs4,554 crore.

In the area of school education, a model school programme with the aim of establishing 6,000 high quality model schools has been announced. The budget also proposed to extend the mid-day meal scheme to upper primary classes in government and government-aided schools in all blocks of the country.

Nehru Yuva Kendras will be opened in all the 123 districts which at present do not have an NYK.

In higher education, three IITs are to be set up in Andhra Pradesh, Bihar and Rajasthan; two IISERs at Bhopal and Thiruvananthapuram; two Schools of Planning and Architecture at Bhopal and Vijayawada; and one Central University in each of the hitherto uncovered states.

To encourage children to take up science and R&D, scholarships will be given to students under a new scheme, Innovation in Science Pursuit for Inspired Research (INSPIRE).

Highlighting the need for launching a world-class skill development programme in mission mode, the budget seeks to establish a non-profit corporation. The government will put Rs1,000 crore as initial equity in the corporation. Continuing the scheme of upgradation of ITIs, the budget provides Rs750 crore for upgrading 300 more ITIs in 2008-09.

The schemes announced for the welfare of the minorities include a multi sectoral development plan to be drawn for each of the minority concentration district and a scheme for modernising Madrassa education. The allocation for the ministry of minority affairs has been doubled to Rs1,000 crore.

The finance minister has provided Rs624 crore for the commonwealth games and Rs75 crore to ICCR to promote India's music literature, dance, art and films.

Sarva Shiksha Abhiyan (SSA): Sarva Shiksha Abhiyan provided Rs13,100 crore with the focus to shift from access and infrastructure at the primary level to enhancing retention and improving quality of learning. Mid-day Meal to get Rs8,000 crore; secondary education will get Rs4,554 crore.

Jawahar Navodaya Vidyalaya: Rs130 crore provided in 2008-09 to establish Navodaya Vidyalayas in 20 districts having large concentration of scheduled castes and scheduled tribes.

Kasturba Gandhi Balika Vidyalaya: Funds (as part of SSA) provided for additional 410 Vidyalayas in educationally backward areas. Rs80 crore allocated to set up new or upgrade existing hostels attached to Balika Vidyalayas.

National Means-cum-Merit Scholarship: Rs750 crore allocated to build a corpus of Rs3,000 crore in four years. 1,00,000 scholarship to be awarded beginning 2008-09.

Nehru Yuva Kendra: Rs10 crore allocated in 2008-09 to set up kendras in 123 districts, and to cover recurring expenditure in the first year.

Mid-day meal scheme: Extended to upper primary classes in government and government-aided schools in all blocks which will benefit 25 million children taking the total number of children covered under the scheme to 139 million.

Institutes of higher education: India to become a knowledge society - three IISERs at Mohali, Pune and Kolkata and an IIIT at Kanchipuram have started functioning.

Government to set up 16 central universities in each of the hitherto uncovered states; three IITs in Andhra Pradesh, Bihar and Rajasthan; two IISERs at Bhopal and Tiruvananthapuram; and two schools of planning and architecture at Bhopal and Vijayawada: Rs5 crore grant provided to Deccan College and Postgraduate and Research Institute, Pune.

Science and technology: Rs85 crore allocated for Innovation in Science Pursuit for Inspired Research (INSPIRE); which will include scholarships for young learners (10-17 years), scholarships for continuing science education (17-22 years) and opportunities for research careers (22-32 years); Rs100 crore provided for establishing the National Knowledge Network.

Besides, the ministry of culture proposes to engage scholars from Indian and foreign institutions to work on specific projects. The terms of engagement will provide freedom and flexibility to the scholars. "I intend to make an initial grant of Rs5 crore to encourage this effort", Chidambaram said.

Grant to Agricultural Universities: Chidambaram also proposed to continue the special grant of Rs100 crore to agriculturaal universities to recognise excellence.

The government has selected the Govind Ballabh Pant University of Agriculture & Technology, Pantnagar and the Tamil Nadu Agricultural University, Coimbatore, and each will be given Rs50 crore.

Upgradation of 500 ITIs: The implementation of the scheme of vocational training improvement with World Bank assistance has been approved. Loan agreement between World Bank and the Government of India was signed on November 2, 2007.

Chidambaram said 100 ITIs have been identified for upgradation during 2006-07 and another 138 during 2007-08.

The government had taken up a programme for upgradation of 500 ITIs over five years beginning 2005. Revised courses in the first lot of 100 upgraded ITIs were started in August 2005 and in the second lot of 100 upgraded ITIs in August 2006. Chidambaram said he expected another 300 ITIs to be covered by August 2009. That would still leave 1,396 government ITIs.

The government proposes to upgrade 1,396 ITIs into centres of excellence in specific trades and skills under public-private partnership.

Under the proposed scheme, the state government, as the owner of the ITI, will continue to regulate admissions and fees; the new management will be given academic and financial autonomy; and the central government will provide financial assistance by way of seed money. ITIs will be encouraged to start a second shift. Once a tripartite MoU is signed among the three stakeholders, I propose to grant an interest free loan up to Rs2.5 crore to each ITI for upgradation and revision of courses, Chidambaram said.

He sought the cooperation of state governments in upgrading at least 300 ITIs every year, beginning 2007-08, under the PPP mode. "I have kept aside Rs750 crore for this purpose," he said.

The scheme has been launched and guidelines for implementation of the scheme have been issued. The scheme has a proposed outlay of Rs.3,665 crore, he said.

Task Force on Skill Development: For sustaining a high level of economic growth the government proposes to create a reservoir of skilled and trained manpower for creating the right governance and institutional mechanisms, core infrastructure, policies & standards and the necessary legal framework for adoption of e-governance. The National E-Governance Programme (NeGP) was approved in May 2006.