Higher Education Budget 2025: Outlay crosses Rs 50,000 crore; massive PMRF boost; IITs to add 6,500 seats

NEW DELHI: The budget 2025-26 presented by the finance minister Nirmala Sitharaman on Saturday saw a 5.16% increased allocation to higher education, 7.7% if calculated over the revised estimate. There has been a Rs 50,077.95 crore allocation to the sector with a massive 71% increase in the Prime Minister Research Fellowship (PMRF). Following a cut in the last budget, the allocations to financial aid and regulatory body, University Grants Commission, have increased.

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Presenting the 8th consecutive budget, Sitharaman said the government will provide 10,000 research fellowships in Indian Institute of Technology (IIT) and Indian Institute of Science (IISC) and expansion of capacity in IIT’s with a special focus on the IIT’s built after 2014.

“The total number of students in 23 IITs has increased 100% per cent from 65,000 to 1.35 lakh in the past 10 years. Additional infrastructure will be created in the 5 IITs started after 2014 to facilitate education for 6,500 more students. Hostel and other infrastructure capacity at IIT, Patna will also be expanded,” said Sitharaman.

She also announced 10,000 additional seats in medical colleges and hospitals, towards the goal of adding 75,000 seats in the next 5 years.

There was also an announcement of setting up the Centre of Excellence in Artificial Intelligence (AI) for Education with an outlay of Rs 500 crore.

Education Budget 2025: Higher education allocation

The higher education budget was revised to Rs 46,482.35 crore from Rs 47,619.77 crore in 2023-24. Similarly the allocation to financial aid was revised to Rs 1,282.40 crore from Rs 1,908.00 crore.

Though there has been an increase in budget allocation, the 2024-25 allocation was a higher 7.4% increased allocation.

Overall the education sector's budget allocation stands at Rs.1,28,650.05 crore, an increase from Rs 1,20,627.87 crore, in 2024-25 budget.

Education Budget 2025: Higher education outlay

Education Budget 2025: IIT, IIM, central universities

Continuing the past few years trend, the central universities have the highest allocation of Rs 1,6691.31 crore, an increase from Rs 15,928 crore, in 2024-25 budget. Out of the allocation, Rs 462.14 crore from the outlay is for repayment of principal loan to Higher Education Funding Agency (HEFA) .

The Institute of Eminence scheme has also seen a fund cut to Rs.475.12 crore from Rs.1800 crore in 2024-25 budget.

In the 2025-26 financial year, the allocation for UGC stands at Rs 3,335.97 crore from Rs 2,500 crore in 2024-25. However, the allocation had been revised to Rs 3,014 crore. The allocation to the body is still the lowest in the last few years.

Another regulatory body, the All India Council for Technical Education (AICTE) has an increased allocation of Rs 200 crore from Rs 135.77 crore in 2024-25 budget.

Education Budget 2025: IIT, IIM, NIT, IISER, universities, UGC (In Rs Cr)

However, for two institutes, Indian Institute of Science (IISc Bangalore) and Indian Institute of Science, Education and Research (IISER) there is a substantial cut in allocation.

Along with the IIT’s even the Indian Institute of Information Technology has seen an increase in the allocation to Rs.522.00, following a cut in the 2024-25 budget.

The government also announced the implementation of a Bharatiya Bhasha Pustak Scheme to provide digital-form Indian language books for school and higher education.

Budget 2025: Financial aid rises; research funds cut

The different financial aid provided to students has witnessed an increased allocation for 2-25-26 financial year to Rs 2,160 crore, from 1,908 crore in 2024-25. The revised estimate however, shows a drop to Rs 1,282.40 crore.

Another student financial aid, which is under the PM Uchchatar Shiksha Protsahan (PM-USP) Yojna, has received an allocation of Rs 1,560 crore, a marginal increase from the current financial year’s outlay of Rs 1,558.00 crore.

The cut in research funding continues. In the 2025-26 financial year the various research schemes saw an allocation of Rs 327.00 crore, from Rs.355 crore in 2024-25. However the revised budget for these schemes saw a massive drop to Rs 74.50 crore.

The budget for Impacting Research Innovation and Technology (IMPRINT), a pan-IIT and Indian Institute of Science (IISc) joint research initiative, has not seen an allocation this year. The budget for it in 2024-25 had doubled to Rs 10 crore, however, the revised budget just showed Rs. 2.50 crore allocation.

The Scheme for Promotion of Academic and Research Collaboration (SPARC) which facilitates academic and research collaborations between Indian and foreign institutions has received an allocation Rs. 50 crore, a cut from Rs.100 in 2024-25 budget. Here too the revised budget for the scheme stood at Rs.40 crore.

The Scheme for Transformational and Advanced Research in Sciences (STARS), which aims to integrate science education and research, has received Rs 40 crore, a small increase from Rs.30 crore over the current financial-years budget estimate. However, the revised estimate just stood at Rs.15 crore.

Higher Education Budget 2025: Major schemes, research (in Rs Cr)

The Multidisciplinary Education and Research Improvement in Technical Education (MERITE) scheme saw an allocation of Rs 220 crore from Rs 200 crore in 2024-25. This scheme had in 2023-24 budget seen its allocation rise from Rs 2 crore to Rs 100 crore. It is supported by the World Bank.

With a focus on vocational and skill education, the National Apprenticeship Training Scheme (NATS) has been allocated Rs 1,178 crore, an almost 49% increase from 2024-25 budget.

Education Budget 2025-26: PM-USHA, RUSA

Rashtriya Uchhatar Shiksha Abhiyan (RUSA), now named Pradhan Mantri Uchchatar Shiksha Abhiyan (PM-USHA), has been allocated Rs.1815 crore. In the current financial year the allocation stood at 1,814.94 crore, however the revised budget for it was a drop to Rs.895 crore.

A centrally-sponsored scheme, PM USHA – and RUSA before it – supports state higher and technical education institutions. The scheme had been witnessing a continuous fund cut, the largest in 2022-23 when it dropped to Rs 2,042.95 crore from Rs 3,000 crore the previous year.

Education Budget 2025-26: Digital E-learning

The budget allocation for the digital e-learning scheme has seen an increased allocation of Rs.681.00 crore from Rs.505.00 crore in 2024-25 budget. Interestingly the revised budget was much higher at Rs.1595.00 crore.

National Mission in Education Through ICT, Higher Education Statistics and Public Information System (HESPIS)and Academic Bank of Credits (ABC) constitute the digital e-learning schemes.