On the Union Budget and Education

February 5, 2025

GS Paper II Government Budgeting Issues Relating to Education

Budget 2025 has promised higher allocations for education compared to last year’s revised estimates.

Education in Budget 2025

Increased Financial Allocation: Budget 2025 has allocated higher funding for education compared to last year’s revised estimates. 7% increase in higher education spending, though the actual expenditure in 2023-24 was 10% higher than the current estimates.
Key Announcements: ₹500 crore allocation for AI Centre of Excellence to enhance education through artificial intelligence.
- Broadband connectivity for schools, improving digital infrastructure.
- Expansion of five third-generation IITs, strengthening higher education. Increased funding for Indian knowledge systems, promoting indigenous learning.
Increase in School Education Funding: ₹11,000 crore increase over the 2024-25 revised estimates, reflecting a 16% rise in school education funding.
- Despite this, as a percentage of the total Budget, the allocation increased by only 0.12 percentage points to 1.55%.
- Higher education allocation remains stagnant at 0.99% of the Budget.
Implementation: Higher inflows to States, which play a key role in implementing school education programs. Kendriya Vidyalaya Sangathan (KVS) and other national institutions continue to receive significant funding.

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Challenges in Education Sector

Underfunding: The University Grants Commission (UGC) reforms, inspired by global models, require significant financial investment. Key reforms such as:
- Four-year degree programmes
- Multi-institutional course selection
- Bi-annual admissions
- Structural academic changes
Inadequate support: State governments bear the financial burden, yet Budget 2025 does not provide adequate support for these transitions.
Post-COVID learning recovery: Learning losses have been addressed, with foundational literacy and numeracy (FLN) reaching its highest levels.
Gaps in FLN: India still falls short of achieving full FLN, a key goal under the NIPUN Bharat scheme (target: 2026-27).
Underpayment: NEP 2020 introduces a 5+3+3+4 structure, emphasizing five years of early education up to Class 3. Early education is critical for achieving full FLN, a key prerequisite for long-term workforce development.
- Anganwadi workers handle pre-primary education (two years before Class 1).
- They are underpaid, overburdened, and often lack adequate training to deliver quality FLN education.

Foundational Stage (5 years)

Covers ages 3 to 8 (Pre-school to Class 2)
Includes: 3 years of pre-primary (Anganwadi/Balvatika) and Classes 1-2
Focus on play-based, activity-based, and discovery-based learning
Emphasis on early childhood care and education (ECCE)

Preparatory Stage (3 years)

Covers ages 8 to 11 (Classes 3 to 5)
Introduction of structured learning, formal subjects, and interactive classroom activities
Focus on experiential learning in subjects like language, mathematics, science, and arts

Middle Stage (3 years)

Covers ages 11 to 14 (Classes 6 to 8)
Introduction of subject-specific learning
Hands-on experiments and exposure to vocational education from Class 6 onwards
Multidisciplinary approach with focus on critical thinking

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Conclusion

Addressing these challenges urgently and effectively will be key to ensuring India’s long-term human capital development and global competitiveness.

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