Budget 2025-26: Major Highlights for Education Sector

February saw the unveiling of Budget 2025-26 by Finance Minister Nirmala Sitharaman and meeting the high expectations of the education sector. For 2025-26, the total budget allocation for the Ministry of Education is ₹1,28,650 crore, reflecting a 6.22% increase over the previous year’s budget.

Education Minister Dharmendra Pradhan highlighted the budget’s increased allocation for both school and higher education, along with a strong focus on establishing Atal Tinkering Labs and an AI Centre of Excellence.

In this blog, we will look at the highlights of Budget 2025-26 for the education sector and in particular allocations for department of School Education and Literacy. Take a look at it below:

1. The Budget 2025-26 has earmarked ₹78,572 crore for the Department of School Education & Literacy, marking the highest-ever allocation. This represents a 7% increase of ₹5,074 crore compared to the previous year’s budget, reinforcing the government's commitment to strengthening the education sector.

2. The government's key education schemes saw a boost in funding, with an increase of ₹3,750 crore for Samagra Shiksha Abhiyan, ₹32 crore for the Pradhan Mantri Poshak Shakti Nirman (PM-POSHAN) scheme and ₹1,450 crore for PM SHRI Schools.

3. From the total budget allocation of ₹78,572 crore, the central government has earmarked ₹63,089 crore for various government schemes, while ₹15,483 crore has been set aside for non-scheme expenditures.

4. As part of this Budget, 50,000 Atal Tinkering Labs (ATLs) will be established in government schools over the next five years. These labs are designed to ignite curiosity, encourage innovation and nurture a scientific mindset among young learners.

5. Under the BharatNet project, the Budget has also proposed to make internet provision in all government secondary schools and primary health centres in rural areas.

6. A new AI Centre of Excellence in Education will be established with an investment of ₹500 crore. As the fourth such centre in the country, it aims to transform India's education system across all levels, from pre-primary to professional and research domains.

7. By promoting artificial intelligence, the AI Centre of Excellence in Education also seeks to address disparities and inefficiencies, ensuring equitable and high-quality education across India.

8. The central government will also set up a National Digital Repository of Indian knowledge systems for knowledge sharing.

Conclusion

Apart from the increased allocation to Department of School Education and Literacy, Budget 2025-26 has also generously granted a higher percentage to the Department of Higher Education and to major autonomous bodies. Higher education institutes such as IITs, IIMs and NITs have received a significant increased allocation. As many as 5 National Centres of Excellence for skilling will be set up in the coming years with a focus on partnerships and equipping youth with skills needed to meet industry demands. The partnerships will cover curriculum design, training of trainers, a skills certification framework and periodic reviews.

The Budget 2025-26 has reinforced the government's commitment to strengthening India’s education sector with increased funding and strategic initiatives. With a record allocation for school and higher education, the emphasis on digital learning, AI integration, and skill development marks a progressive shift towards future-ready education.

While there is always room for further investment in education, these measures indicate a positive trajectory toward making quality education more accessible and aligned with global standards.

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Frequently Asked Questions

Q1. What are the pillars of National Education Policy?

The five pillars of NEP 2020 are Access, Equity, Quality, Affordability and Accountability. These pillars serve as the foundation for the NEP 2020’s vision of making India a global knowledge superpower.

Q2. What are the 4C’s of the National Education Policy 2020?

The 4C’s of NEP 2020 are Critical Thinking, Creativity, Collaboration and Communication. These 4 C’s align with the 21st-century learning framework, ensuring that students develop holistic skills beyond rote learning and excel in a dynamic global landscape.

Q3. What are the highlights of NEP?

The National Education Policy 2020 revised India’s education structure and introduced the 5+3+3+4 model. It also focuses on Foundational Literacy and Numeracy, holistic and multilingual education, global expansion and digital learning.