2025 Education Budget Pushes for 100 New Model Colleges. The government is continuously putting forth efforts to improve the educational system and make education better and more affordable for everyone, irrespective of their caste, creed, or gender. The educational budget for 2025-26 has provided a significant amount to develop the quality of education, curriculum, staff members, and infrastructure of schools and colleges. Many new schemes have been launched for the benefit of students. To know more about the topic “2025 Education Budget Pushes for 100 New Model Colleges,” read the complete article.
2025 Education Budget Pushes for 100 New Model Colleges
Union Budget 2025-26 allocated Rs 1.28 trillion to the education sector, a 6.5 percent hike compared to the previous year and the lowest in the past years. However, the overall spending on education remained below the suggested 6 percent of Gross Domestic Product (GDP) spending in the National Education Policy (NEP) 2020. The allocation to the educational sector was $1.20 trillion in 2024-25, a 7.14 percent increase from Rs 1.12 trillion in 2023-24. The allocation was Rs 1.04 trillion in 2022-2023. Notably, in this year’s budget, the government announced new initiatives towards improving the quality of education in the country, with emphasis particularly on artificial intelligence (AI) and the IITs.
Education Budget: The Education Budget reflects the financial resources provided by the government to support and improve the country’s education system. This comprises funding for primary, secondary, and higher education, as well as vocational and technical training programs. Depreciation, financing costs, hours lost due to continuing education of staff, training allowances and pensions for retired education staff are not included.
Highlights of Education Budget 2025-26
The key highlights of the education budget of India for 2025-26 are
Expansion of Capacity in IITs
While announcing Union Budget 2025, Ms. Sitharaman noted that the number of students has increased in 23 IITs by 100 percent in the last 10 years. The Budget proposed to divert funds for the creation of additional infrastructure in the five IITs established after 2014 for 6,500 students. The government also plans to expand IIT Patna in the country.
Expansion of Medical Education
The Union Budget 2025-26 allocates major resources to medical education, adding 10,000 new seats in medical colleges across India. This will be further expanded with an additional 75,000 seats over the next five years, offering more opportunities for aspiring healthcare professionals. By enhancing the reach of medical education and enhancing the quality, India is setting the stage for a more skilled workforce capable of addressing the rising healthcare demands.
Establishment of National Centres of Excellence
Building on the initiative announced in the Union Education Budget, five National Centres of Excellence for skilling will be set up with global expertise and partnerships to equip our youth with the skills required for “Make for India, Make for the World” manufacturing. The partnerships will cover curriculum design, training of trainers, a skills certification framework, and periodic reviews.
AI Centre of Excellence in Education
Finance Minister announced three Centers of Excellence in Artificial Intelligence for agriculture, health, and sustainable cities in 2023. Now a Center of Excellence in Artificial Intelligence for education will be set up with a total outlay of $500 crore.
Atal Tinkering Labs
In this new initiative, 50,000 Atal Tinkering Labs will be set up in government schools “to cultivate the spirit of curiosity and innovation and foster a scientific temper among young minds.” This will come over and above providing broadband connectivity to all government secondary schools and Primary Health Centres in rural areas.
Broadband Connectivity
Union Finance Minister Nirmala Sitharaman on Saturday announced that broadband connections will be provided to all government secondary and primary schools, as well as primary healthcare centers in rural areas. She made the announcement while presenting the Union Budget 2025-26 in Parliament.
Tech Research Fellowships
The finance minister announced 10,000 fellowships will be offered for technology research in IITs and IISs over the next five years. “Five national centers for excellence for skilling with global expertise and partnerships will be set up and 50,000 Atal Tinkering Labs will be set up in government schools in the next five years.”
Strengthening Urban Livelihoods
Our government has been giving emphasis to assisting urban poor and vulnerable groups. A scheme for socio-economic upliftment of urban workers will be launched to help them enhance their incomes, have viable livelihoods and a better quality of life.

Mark Delyn focuses on education, learning methods, and academic trends. Her work supports students, educators, and lifelong learners with practical and timely insights.