Budget 2025: Education sector gets 6.65% hike; focus on AI, skill development, more IITs, medical seats

NEW DELHI: Union finance minister Nirmala Sitharaman presented the Union Budget 2025 on Saturday. As per the budget 2025, a total of Rs 1.28 lakh crore has been allotted to the education sector, reflecting a 6.65% rise from the previous fiscal year. The department of school education and literacy under the education ministry has been allocated Rs 78,572 crore, a 7.62% increase from the previous year. Budget 2025 LIVE

The union finance minister has allotted Rs 41,250 crore to Samagra Shiksha Abhiyan which is an 11.46% increase over last year's allocation. The Prime Minister’s Schools for Rising India (PM SHRI) scheme, which aims to prepare more than 15,000 schools of excellence which will help showcase the implementation of the National Education Policy 2020, has also received Rs 7,500 crore this year. Last year, the PM SHRI scheme was allotted Rs 4,500 crore.

Budget 2025: Funds cut for JNVs

The government also plans to establish 50 thousand Atal Tinkering Labs in government schools over the next five years to promote innovation and scientific temper among students. Government secondary schools and primary health centres in rural areas will receive broadband connectivity under the Bharatnet project.

The budget for Navodaya Vidyalayas (JNVs) has been reduced by Rs 495 crore to Rs 5,305 crore, while Kendriya Vidyalaya Sangathan (KVS) funding has seen a marginal increase of Rs 200 crore to Rs 9,504 crore. As per the budget 2025, the broadband connectivity will be extended to all government secondary schools and primary health centres in rural areas under the Bharatnet project.

The budget allocation for the Pradhan Mantri Poshan Shakti Nirman (PM - POSHAN) earlier known as the national programme of mid-day meals in schools saw a slight increase to Rs 12,500 crore. Funding for the National Means-cum-Merit Scholarship (NMMS) remains nearly unchanged at Rs 374 crore, while the allocation for the new India literacy programme stays steady at Rs 160 crore.

Higher Education Budget 2025: Key allocation

According to budget 2025, the higher education sector has been allocated Rs 50,077.95 crore, reflecting a 5.16% increase. A significant portion of this funding will be allotted to expanding infrastructure in Indian Institutes of Technology (IITs). The government also plans to add 6,500 new seats , particularly in IITs established after 2014.

The finance minister also said that the government will provide 10,000 research fellowships in IITs and Indian Institutes of Science (IISCs). Union Education Minister Dharmendra Pradhan in his speech on budget 2025 said that the completion of PMRF phase 1 played a key role in promoting research at IITs and the IISC and now the government is set to launch PMRF 2.0 in 2025-26.

The budget allocation for educational institutions for this year compared to last year is detailed below.

Medical education and skilling initiatives

While presenting the budget 2025, the government has announced the addition of 10 thousand seats in medical colleges and hospitals, with a target of reaching 75,000 seats over the next five years.

Speaking about the medical seat increment, Vikas V, a neurosurgeon at the National Institute of Mental Health and Neurosciences (NIMHANS), said, "Simply increasing the number of MBBS graduates may not resolve this imbalance. However, as overall saturation rises, smaller cities may gradually become better equipped. Despite this, the World Health Organization (WHO) still points out significant gaps in India's doctor-to-population ratio, indicating a broader systemic issue."

In order to provide young people with the skills necessary for "Make for India, Make for the World" manufacturing, the budget also places an emphasis on skills, establishing five National Centres of Excellence for skilling with partnerships and global expertise. The government also introduced a new initiative that will offer term loans of up to Rs 2 crore to 5 lakh first-time entrepreneurs, including women from Scheduled Castes (SC) and Scheduled Tribes (ST), over the next five years.

Digital and language initiatives

The budget allocation for the digital e-learning scheme saw an increased allocation of Rs 681 crore from Rs 505 crore last year. The government has also proposed the implementation of the Bharatiya Bhasha Pustak Scheme to provide digital-form Indian language books for schools and higher education.

Financial aid and research funding

In budget 2025, allotments for student financial aid have increased to Rs 2,160 crore, but funding for research has decreased. The budget for various research schemes has been reduced to Rs 327 crore, down from Rs 355 crore in the previous year. With its funding rising by 49% to Rs 1,178 crore, the National Apprenticeship Training Scheme (NATS) has seen a notable increase. The budget also includes the establishment of three Centres of Excellence in Artificial Intelligence (AI) for education, with an outlay of Rs 500 crore.

The budget for the upcoming fiscal year significantly reduced the amount allotted to a number of minority and tribal student scholarships. According to budget 2025, minority pre-matric scholarships were reduced by 39.9%, with only Rs 197.50 crore set up for 2025–2026. The budget for minorities' post-matric scholarship (PMS) has also been reduced by Rs 731.39 crore or 63.8%.