In her presentation of the Union Budget 2025 on February 1, Finance Minister Nirmala Sitharaman allocated INR 1,28,650.05 crore to the education sector, underscoring the government’s commitment to enhancing both school and higher education in India. The funding will be distributed between the School Education and Literacy, and the Department of Higher Education, with new initiatives and strengthened schemes set to transform the nation’s educational landscape.
School Education Receives Major Boost
The Department of School Education and Literacy has been allocated INR 78,572.10 crore, which represents 61% of the total education budget for 2025-26. Key schemes such as the PM Schools for Rising India (PM SHRI) initiative saw a substantial increase in funding, now set at INR 7,500 crore. This will help upgrade over 15,000 schools in line with the National Education Policy (NEP) 2020. Additionally, the Pradhan Mantri Poshan Shakti Nirman (PM POSHAN) scheme, aimed at providing nutritious mid-day meals to children, received an enhanced allocation of INR 12,500 crore.
Strengthening Higher Education
For higher education, INR 50,077.95 crore has been earmarked, accounting for 39% of the total education budget. This funding will bolster the growth and development of India’s higher education institutions, supporting an increasingly globalised educational environment.
Focus on Holistic Education and Teacher Development
Significant funding has been directed towards the Samagra Shiksha scheme, receiving INR 41,249.98 crore to promote holistic education. The STARS project, backed by the World Bank, will continue with an allocation of INR 1,250 crore to enhance learning outcomes across various states.
The Union Budget 2025 lays the groundwork for a comprehensive transformation of India’s education sector, with a focus on sustainability, inclusion, and technological integration. This robust budget reflects a clear path towards a brighter educational future for all.
