Budget 2025-26: Key Highlights for Education Sector [2 min read]

Let’s come to the point straight… 😃 
The Union Budget 2025-26 has brought some changes to India’s education sector in 2025/26, focusing on expanding access, fostering innovation, and bridging gaps in school and higher education. Below is a detailed breakdown of the key allocations, initiatives, and reforms you need to know:

1. Total Budget Overview

• Ministry of Education Allocation: ₹1.28 lakh crore (16% increase from 2024-25 revised estimates).

  • School Education & Literacy: ₹78,572 crore (↑16% from 2024-25).

  • Higher Education: ₹50,078 crore (↑7.74% from 2024-25).

• Share in Total Government Spending: 2.54% (up from 2.42% in 2024-25).

2. School Education & Literacy: Major Investments

• Samagra Shiksha (SS): ₹41,250 crore (↑11% from 2024-25) to strengthen school infrastructure and access.

• PM POSHAN: ₹12,500 crore (↑25%) for mid-day meals and nutritional support.

• PM SHRI Schools: ₹7,500 crore (↑67%) to develop 15,000+ schools as “excellence hubs” under NEP 2020.

• Atal Tinkering Labs: 50,000 labs to be set up in government schools over 5 years to promote innovation.

• Digital Learning:

  • BharatNet to provide broadband connectivity to all rural government secondary schools.

  • Bharatiya Bhasha Pustak Scheme for digital Indian-language textbooks.

3. Higher Education: Key Allocations

• IITs & IISc:

  • Infrastructure expansion for 6,500+ students across 5 IITs.

  • ₹11,349 crore allocated to IITs (↑8%).

• Medical Education: 10,000 new MBBS seats added in 2025-26 (part of a 75,000-seat target over 5 years).

• Research & Skills:

  • PM Research Fellowship: 10,000 fellowships for tech research in IITs/IISc.

  • National Centres of Excellence: 5 global-partnered hubs for skilling youth in manufacturing.

• Autonomous Institutions: ₹39,196 crore for central universities, IIMs, NITs, and IISERs.

4. New Initiatives Announced

• AI for Education: ₹500 crore for a Centre of Excellence in Artificial Intelligence.

• Student Financial Aid: Budget doubled to ₹2,160 crore.

• Apprenticeships: ₹1,178 crore for the National Apprenticeship Training Program (NATS).

• Indian Knowledge Systems: ₹50 crore to promote traditional knowledge (vs. ₹10 crore in 2024-25).

5. Tax Relief for Students Abroad

• TCS Threshold Increased: From ₹7 lakh to ₹10 lakh for education remittances under RBI’s LRS.

• TCS Exemption: Remittances via education loans from financial institutions will no longer attract TCS.

6. What’s Reduced?

• World-Class Institutions: Budget cut to ₹475 crore (from 2024-25 revised estimates).

• ICT in Education: Allocation reduced to ₹655 crore (from ₹1,575 crore).

• Internationalization of Higher Education: No funds allocated (vs. ₹104 crore in 2024-25).

7. The Bigger Picture

• Focus Areas: Digital learning, STEM education, research, and bridging rural-urban gaps.

• Long-Term Goals:

  • Transform 15,000+ schools into NEP 2020 model institutions.

  • Make India a global hub for skilled manpower and AI-driven education.

Closing Thoughts
The 2025-26 budget signals a strong push toward equitable access, innovation, and quality in education. While new schemes like PM SHRI schools and AI centers grab headlines, sustaining funding for critical areas like teacher training and rural connectivity remains vital.

this summary has been Data Source: Careers360 Budget Analysis 2025-26