The discussion surrounding education funding has gained momentum as various stakeholders voice their perspectives on the effectiveness of tax contributions in the sector.
Recent debates highlighted the differences between public and private educational systems, particularly in Spain and the United States. Factors such as scholarships, resources, infrastructure, and digital transformation are significantly influenced by tax allocations, which many students appreciate despite existing shortcomings.
Antonio Barbeito, CEO of Mundoestudiante, a national and international chain of academies, criticized the current tax framework. He expressed concerns about the heavy tax burden he faces as an entrepreneur, stating, 'I have to pay 25% corporate tax and personal income tax, while also being taxed on dividends.' He argued that the education system does not reflect the value of the taxes paid.
In response, a public university student defended the role of taxes in education, stating, 'Over a million students are enrolled in public universities, and many of us depend on scholarships funded by taxes.' This student emphasized the need for increased investment in education to enhance its quality.
Barbeito maintained his stance, suggesting that while taxes are necessary, they do not function as effectively as they should in education. The student countered by advocating for higher taxes to improve educational funding, stating, 'To achieve a more efficient education, we need greater investment.' He urged Barbeito to witness the impact of these taxes firsthand in public universities.
Meanwhile, in Indonesia, SMP Muhammadiyah Al Mujahidin Gunungkidul received recognition as a leading educational institution. The award was presented by the Central Leadership of Muhammadiyah's Basic and Secondary Education and Non-Formal Education Council. The school was selected from 1,599 Muhammadiyah schools across Indonesia, with only 14 achieving this prestigious status.
Agus Suroyo, the school's head, explained that the evaluation was based on 70 indicators across three assessment aspects: Muhammadiyah character, organizational management, and learning quality. This recognition underscores the institution's commitment to producing competent graduates ready to face future challenges.
Additionally, the Confederation of Indian Industry (CII) has called for reforms in India's Priority Sector Lending (PSL) framework to support emerging sectors like digital infrastructure and green initiatives. The CII emphasized the need for a review of PSL allocations to align with the changing economic landscape and to ensure that vital sectors receive adequate financial support.
The PSL framework, mandated by the Reserve Bank of India, requires banks to allocate a percentage of their loans to key sectors, ensuring equitable credit distribution. CII Director General Chandrajit Banerjee highlighted the importance of adjusting PSL norms to reflect the evolving economic contributions of various sectors.