Education Sector Gets Largest Budget Ever: Insights from Industry Leaders

Education is vital for human development, enhancing quality of life and creating skilled manpower for the economy. It empowers the poor to be self-reliant and contribute to national growth. As a concurrent subject, it involves both the Union and State Governments. According to the National Policy on Education (1986), the Union Government ensures education’s national character, quality, and standards, monitors manpower needs, supports research, addresses international educational aspects, and promotes excellence at all levels.

While presenting the Union Budget on February 1, 2025, Finance Minister Nirmala Sitharaman announced a range of bold initiatives designed to transform India’s education sector. The budget highlights the government’s dedication to promoting innovation, strengthening digital infrastructure, and preparing the youth with skills for the future. In this regard, ObserveNow interacted with industry experts to know their perspectives on the recently announced budget.

The Ministry of Education has received a total allocation of ₹128,650 crore, marking a 6.22% increase over the Budget Estimates (BE) of 2024-25. This increment underscores the government’s priority towards expanding educational opportunities and improving infrastructure across the country.

“In a bold initiative to transform the educational sector, the government has introduced a comprehensive strategy in its 2025 budget designed to foster innovation, enhance skill development, and expand educational infrastructure at all levels. Placing a strong focus on education with an allocation of INR 1,28,650.05 crore, this allocation builds on the government’s ongoing commitment to education, as established in previous budgets. Of the total, INR 78,572.10 crore, accounting for 61% of the educational funds, is dedicated to the Department of School Education and Literacy. These funds are specifically targeted to strengthen school education and support various initiatives aimed at improving the quality of education nationwide” said Dr. Shashiranjan Jha, Associate Vice President, Education and Skill Development, IPE Global.

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