Budget 2025: Education gets Rs 1.28 lakh crore; IIT expansion; 75,000 more medical seats in 5 years

NEW DELHI: The Union Finance Minister Nirmala Sitharaman announced major initiatives for the education sector including setting up of Centre of Excellence in Artificial Intelligence (AI) for education with an outlay of Rs 500 crore, expansion of IITs, and additional 10,000 seats in medical colleges. Education Budget 2025 LIVE Updates

Nirmala Sitharaman is presenting the 8th consecutive Union Budget 2025 speech in the Lok Sabha. This year’s Budget focuses on reforms in 6 domains - taxation, urban development, mining, financial sector, power and regulatory reforms.

For the current financial year 2024-25, the government has allocated a total budget outlay of Rs 1.48 lakh crore for education, employment, and skilling. Of which, the School Education and Literacy Department got an allocation of Rs 73,498 crore and Higher Education Department received Rs 47,619.77 crore for this year. The Budget 2025 PDF is now available.

As per the Budget highlights 2025-26, the education sector will get a total outlay of Rs 1.28 lakh crore, which is a 6.65% increase compared to the current fiscal year 2024-25.

Also read Economic Survey 2024-25 highlights skills mismatch; over 50% graduates, 40% postgraduates underemployed

Budget 2025 Highlights: Major announcements for education

Here are the major announcements made for the education sector by the Union finance minister Nirmala Sitharaman.

Expansion of IITs - Additional infrastructure for 5 Indian Institutes of Technology (IITs) and 6,500 new seats will be added. IIT Patna will increase hostels and infrastructure capacity.

Scholarships - The Centre will provide 10,000 PM Research Fellowship for students in IITs and IISc Bangalore.

Centres of Excellence for AI - The government is planning to set up 3 Centres of Excellence in Artificial Intelligence for Education to be set up with outlay of Rs 500 crore.

Medical colleges - 10,000 seats will be added in medical colleges to achieve the target of 75,000 in next 5 years.

School education - 50,000 Atal Tinkering Labs will be established in government schools in the next 5 years to cultivate spirit of curiosity and innovation, and foster scientific temper among young minds. Broadband connectivity to be provided to all government secondary schools and primary health centres in rural areas, under Bharatnet project.

Indian language books - The finance minister said that the Centre will implement Bharatiya Bhasha Pustak Scheme to provide digital-form Indian language books.

Centres of Excellence for Skilling - Five National Centres of Excellence for skilling to be set up with global expertise and partnerships to equip youth with skills required for “Make for India, Make for the World” manufacturing.

New scheme for entrepreneurs - For 5 lakh first-time entrepreneurs, including women, belonging to Scheduled Castes (SC) and Scheduled Tribes (ST), a new scheme will provide term loans of up to Rs 2 crore during the next 5 years.