Union Budget 2025: Education gets better Budget allocation, more money for IITs, central universities

Union Budget 2025-26 boosts education funding, introduces Bharatiya Bhasha Pustak Scheme, and focuses on AI and infrastructure development.

The Union Budget 2025-26 has increased the allocation for school and higher education and has announced Bharatiya Bhasha Pustak Scheme to provide digital-form Indian language books for students. “This aims to help students understand their subjects better,” Union Finance Minister Nirmala Sitharaman said in her Budget presentation. Welcoming the budget, Union Education Minister Dharmendra Pradhan told reporters that it will make education more accessible and will strengthen the culture of research and education.

The Finance Minister said the total number of students in 23 IITs has increased 100% from 65,000 to 1.35 lakh in the past 10 years. “Additional infrastructure will be created in the five IITs started after 2014 to facilitate education for 6,500 more students. Hostel and other infrastructure capacity at IIT Patna will also be expanded,” she said. She also announced the setting up of a Centre of Excellence in Artificial Intelligence for education with a total outlay of ₹500 crore. “By harnessing artificial intelligence, it seeks to address disparities and inefficiencies, ensuring equitable and high-quality education across the nation,” the Union Education Ministry said.

The allocation for school education is ₹78,572 crore, which according to the Centre is the highest ever for the department. “There has been an overall increase of ₹5,074 crore (7%) in the budget allocation for the Department of School Education and Literacy in 2025-26 from the budget estimates of 2024-25. As compared to the revised estimates of 2024-25, there has been an increase of ₹11,000 crore (16.28 %),” the Ministry said. Kendriya Vidyalaya Sangathan has been allocated ₹9,503 crore, an increase of ₹776 crore as compared to the revised estimates of 2024-25.

In the next five years, 50,000 Atal Tinkering Labs (ALT) will be set up in government schools to cultivate the spirit of curiosity and innovation, and foster scientific temper among young minds, the Budget announced, adding that broadband connectivity will be provided to all government secondary schools under BharatNet project in the next three years.

The Higher Education Department has received a total allocation of ₹50,077.95 crore. In the last revised estimates, it was ₹46,482.35 crore. Grants to central universities and IITs have also bee increased. “The budget for centrally sponsored schemes has also increased to ₹1,815 crore, which will strengthen the PM-USHA and RUSA [Rashtriya Uchchatar Shiksha Abhiyan], ultimately benefiting students. The substantial increase in student financial aid to ₹2,160 crore in the Union Budget 2025-26 is commendable,” said University Grants Commission Chairman M Jagadesh Kumar.