The Department of School Education & Literacy has received an outlay of ₹78,572 crore, while that of Higher Education received ₹50,077 crore.
Budget allocation to the Ministry of Education in past 5 years
| Fiscal year | Budget allocation |
| 2025-26 | Rs 1.2 lakh crore |
| 2024-25 BE | ₹1,20,628 crore |
| 2023-24 RE | ₹1,29,718 crore |
| 2023-24 BE | ₹1,12,899 crore |
| 2022-23 Actual | ₹97,196 crore |
FM Sitharaman announced that 50,000 Atal Tinkering Labs will be set up in government schools in the next 5 years to foster a scientific temper among young minds. The Centre also plans to provide broadband connectivity to all government secondary schools and primary health centres in rural areas under the Bharatnet project.
Sitharaman also proposed to implement a Bharatiya Bhasha Pustak Scheme to provide digital-form Indian language books for school and higher education. The aim of the scheme is to “help students understand their subjects better”, the FM said.
The government will also create additional infrastructure in the 5 IITs started after 2014 to facilitate education for 6,500 more students. 10,000 additional seats will be added in medical colleges and hospitals in the next year. This is being done with the goal of adding 75,000 seats in the next 5 years.
The Union Budget is also pushing for Artificial Intelligence in education. Sitharaman said that a Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of ₹500 crore.
During her Budget speech in July 2024, Sitharaman announced financial support for loans up to Rs 10 lakh for higher education in domestic institutions. However, this facility was for youth who have not been eligible for any benefit under government schemes and policies. She said that E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3% of the loan amount.
Vinay Singh, Executive Director & CEO of Thomson Digital and Q&I, described the initiative as a significant step in transforming India’s learning ecosystem. Singh noted that AI could bridge learning gaps, enhance student engagement, and equip learners with the skills needed for the 21st century.
Singh also highlighted the Budget 2025’s provisions for healthcare, specifically the announcement of 10,000 new seats in medical colleges and hospitals in the coming year.
Adil Meraj, CEO of Gurucool, said that these initiatives would foster innovation, skill development, and critical thinking among young students. Meraj further welcomed the Bhartiya Bhaskar Pustak Yojana, noting that it would promote access to quality educational resources and encourage reading habits across diverse learner groups.
First Published: Feb 1, 2025 3:02 PM IST
