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.

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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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