Union Budget 2025-16: Full Speech of FM [PDF, February 1, 2025]
Demands for Grants School Education & Literacy Budget 2025-26
Demands for Grants: Higher Education Union Budget 2025-26
Union Budget at a Glance 2025-26
Analysis of Department of School Education Budget Allocations (2025-2026)
Union Budget 2025-26: Implications for the Education Sector in India
Brief Observations by Prof. Arun C Mehta
- Creating a Centre of Excellence in AI (IndiaAI Mission)for Education is a welcome step.
- The proposal to provide broadband connectivity for all secondary government schools is a welcome step and need of the hour; it is expected to bridge the digital divide gap. However, only 53.9 percent of the total 14,17,891 schools and 46.2 percent of the total 10,17,660 government schools had internet facilities in the schools. Because of the several digital programs, such as UDISEPlus, SDMIS, PEN, APAAR etc. computers and broadband connectivity should be provided to all schools.
- The proposal to raise 10,000 new medical seats in 2025-26 is a step in the right direction.
- The budget demonstrates clear prioritization of Universal education through Samagra Shiksha, Nutritional support through mid-day meals, and Quality of Education.
- Samagra Shiksha remains the most significant scheme for School education, with allocations of ₹41,250.00 crores in 2025-26 compared to ₹37,010.00 crores (Budgeted) in the previous year.
- Samagra Shiksha got the lion’s share of 52.5% of the Department of School Education & Literacy budget.
- PM POSHAN (Mid-Day Meal Scheme) got ₹12,500/- crores in 2025-26 against ₹10,000.00 crores in 2024-25 (Budget), an increase of ₹ 2,500/- crores.
- Samagra Shiksha and PM SHRI indicate a push towards implementing the National Education Policy 2020
- No significant allocation increase in the National Merit Scholarship Scheme.
- The Actual Expenditure on Samagra Shiksha in 2023-24 (₹32,830/- crores) was close to Revised 2024-25 Estimates (₹37,010/- crores), but ₹4,180 crores (11.3 percent) couldn’t be utilized; thus raises questions about the ability to use funds fully.
- Because of the drastic decline of 6.7 million (2.77 percent) enrolment from 2022-23 to 2023-24, a thorough study must be undertaken, state-wise, to know how funds allocated to Samagra Shiksha are effectively utilized. The decline was to the tune of 14 million during 2022-23 to 2023-24.
Abstract: Union Budget 2025-26, Education Sector
The Union Budget 2025-26 presents a transformative approach to the education sector in India, emphasizing technological integration, infrastructure expansion, and skill development. This article critically examines the budget’s key allocations, including ₹500 crore for a Centre of Excellence in Artificial Intelligence (AI) for Education, ₹2,000 crore for the IndiaAI Mission, infrastructural upgrades in five Indian Institutes of Technology (IITs), and an additional 10,000 medical seats. It also explores the potential of initiatives such as establishing 50,000 Atal Tinkering Labs and broadband connectivity in government schools. While these provisions signal a shift towards digital and AI-driven Education, challenges related to equity, accessibility, and implementation remain. This paper comprehensively analyses the budget’s impact on the education sector, focusing on higher Education, school education, and skill development.
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Introduction
The education sector has witnessed significant policy reforms and budgetary allocations recently, particularly integrating digital and AI-driven learning. The Union Budget 2025-26 continues this trend by prioritizing technological advancements, infrastructure expansion, and skill development. This Brief Note examines the key provisions of the budget concerning Education and evaluates their potential impact on the sector.
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Key Budgetary Allocations for Education
2.1. Investment in AI and Emerging Technologies
One of the most significant announcements in the budget is the establishment of a Centre of Excellence in AI for Education, with an allocation of ₹500 crore. This initiative uses AI for personalized learning, automated assessments, and educational administrative efficiency. The IndiaAI Mission has also been allocated ₹2,000 crore to strengthen AI research and infrastructure, particularly by facilitating access to high-performance computing resources like Graphics Processing Units (GPUs). These initiatives align with India’s broader goal of integrating AI-driven solutions into Education, yet their success will depend on how effectively the budget proposals are implemented across various institutions.
2.2. Expansion of Higher Education Institutions
The government has proposed infrastructure development in five IITs to enhance research and accommodate a more extensive student base. While this move is commendable, the absence of new IITs raises concerns about equitable access to premier technical Education, particularly in underserved regions. Additionally, the budget addresses India’s shortage of medical professionals by introducing 10,000 new medical seats in 2025-26, aiming to increase this number by 75,000 over the next five years. While this expansion is necessary, maintaining quality standards in faculty recruitment, infrastructure, and clinical training will be challenging.
2.3. School Education and Digital Learning
The budget’s focus on digital Education is reflected in the establishment 50,000 Atal Tinkering Labs in government schools. These labs aim to foster innovation, creativity, and practical STEM education. Additionally, the broadband connectivity initiative for all government schools seeks to bridge the digital divide by providing access to digital learning resources. However, for these initiatives to be effective, teachers and students must be provided adequate training to facilitate the adoption of digital tools.
2.4. Skill Development and Vocational Training
The budget proposes the establishment of five National Centres for Excellence in Skilling, which will focus on industry-relevant vocational training. The PM Research Fellowship Program will also offer 10,000 fellowships at IITs and the Indian Institute of Science (IISc) Bangalore to promote advanced research. These initiatives aim to align Education with the demand raised by the industry, ensuring that graduates are equipped with the necessary skills. However, their effectiveness will depend on industry collaboration and curriculum alignment with evolving job market trends.
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Critical Analysis and Challenges
3.1. Equity in Educational Access
While the budget prioritizes AI and research-oriented initiatives, it primarily focuses on higher Education and advanced technologies. However, primary and secondary Education requires greater attention, especially in rural areas. Issues such as teacher shortages, outdated curricula, and inadequate school infrastructure remain significant challenges that were not comprehensively addressed in the budget.
3.2. Implementation and Capacity Building
The success of these initiatives hinges on their execution. For instance, AI-driven education requires trained educators, robust digital infrastructure, and contextual adaptation to Indian learning environments. Similarly, increasing medical seats necessitates parallel investments in hospital infrastructure, faculty recruitment, and hands-on clinical training.
3.3. Balancing Quantity with Quality
While expanding IITs and medical colleges increases capacity, ensuring quality education and research output is crucial. Rapid expansion without adequate planning may lead to resource constraints and compromised academic standards. A balanced approach is essential, incorporating faculty development, student support systems, and continuous monitoring.
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Concluding Observations
The Union Budget 2025-26 takes a forward-looking approach by integrating AI and emerging technologies into Education, expanding higher education infrastructure, and promoting skill development. While these measures align with India’s long-term vision, their success depends on practical implementation, equitable access, and sustained faculty training and infrastructure investment. To maximize the benefits of these initiatives, the government should:
- Strengthen primary and secondary Education by allocating resources to teacher training, infrastructure, and curriculum updates.
- Ensure that AI adoption in Education is inclusive by providing digital literacy programs for students and teachers.
- Improve monitoring and evaluation mechanisms for expanding IITs and medical colleges to maintain quality.
- Enhance industry collaboration in vocational training to ensure alignment with job market needs.
By addressing these challenges, India can create a more robust and equitable education system that meets the demands of the 21st-century knowledge economy.
FAQs: Union Budget 2025-26, School Education Sector
Q1: What is the total budget allocation for School Education in 2025-26?
A: The total net budget allocation is ₹78,572.10 crores, with ₹78,571.30 crores under revenue and ₹0.80 crores under capital expenditure.
Q2: Which is the largest scheme in terms of budget allocation?
A: Samagra Shiksha is the largest scheme with an allocation of ₹41,249.98 crores in BE 2025-26, which represents over 52% of the total budget.
Q3: What is PM SHRI and how much is allocated for it?
A: PM SHRI (PM Schools for Rising India), earlier known as Exemplar, aims to develop over 15,000 schools of excellence to showcase NEP 2020 implementation. It has been allocated ₹7,500 crores in BE 2025-26.
Q4: How much is allocated for the Mid-day Meal scheme?
A: The Mid-day Meal scheme, now known as Pradhan Mantri Poshan Shakti Nirman (PM POSHAN), has been allocated ₹12,500 crores in BE 2025-26.
Q5: What are the major autonomous bodies funded under this budget?
A: The major autonomous bodies are:
- Kendriya Vidyalaya Sangathan (KVS): ₹9,503.84 crores
- Navodaya Vidyalaya Samiti (NVS): ₹5,305.23 crores
- NCERT: ₹593.71 crores
- National Bal Bhawan: ₹27.80 crores
Q6: What is the allocation for scholarships?
A: The National Means cum Merit Scholarship Scheme has been allocated ₹374 crores in BE 2025-26. It provides scholarships of ₹6,000 per annum to meritorious students from economically weaker sections.
Q7: Is there any special allocation for tribal education?
A: Yes, under Samagra Shiksha:
- ₹538.11 crores for PM-JANMAN (Pradhan Mantri Janjatiya Adivasi Nyaya Maha Abhiyan)
- ₹688.00 crores for Dharti Aaba Janjatiya Gram Utkarsh Abhiyan in BE 2025-26
Q8: What is the budget for adult education programs?
A: The New India Literacy Programme (NILP)/ULLAS has been allocated ₹160 crores in BE 2025-26.
Q9: How much is allocated for North Eastern Areas?
A: ₹7,497.45 crores has been allocated for North Eastern Areas in BE 2025-26.
Q10: What is STARS and its allocation?
A: Strengthening Teaching-Learning and Results for States (STARS) project supports states in developing and implementing education outcome improvement strategies. It has been allocated ₹1,250 crores in BE 2025-26.
Q11: Has there been an increase in the overall budget from previous year?
A: Yes, there is an increase of about 16.3% from RE 2024-25 (₹67,571.20 crores) to BE 2025-26 (₹78,572.10 crores).
Q12: How much is allocated for direct transfers to states/UTs?
A: For 2025-26:
- Grants-in-aid to State Governments: ₹51,505.21 crores
- Grants-in-aid to Union Territory Governments: ₹2,191.61 crores