Five-Year Review: How India’s Education Budget Has Evolved (2021–2025)
As the Union Budget for fiscal year 2026-27 is set to be tabled in Parliament on February 1, all eyes are on the allocations earmarked for education and higher learning. Finance Minister Nirmala Sitharaman’s upcoming presentation is expected to bring a host of announcements for the sector. To put things in perspective, let’s take a closer look at how education spending has fared over the past five budgets—tracking the funds allocated, the schemes prioritized, and the structural shifts that have shaped India’s learning landscape.
Budget Allocation Trends: A Year-on-Year Snapshot
- 2021-22: ₹93,224.31 crore
- 2022-23: ₹1,04,277.72 crore
- 2023-24: ₹1,12,899.47 crore
- 2024-25: ₹1,48,000 crore (combined education and skill development)
- 2025-26: ₹1,28,650.05 crore
Union Budget 2021-22: Laying the Groundwork for NEP
In the financial year 2021, the Ministry of Education received an allocation of ₹93,224 crore—a modest 2.1% increase over the previous year’s actual expenditure. This budget marked the initial implementation phase of the National Education Policy (NEP), with plans to establish new schools and a central university in Leh to broaden access to both school-level and higher education.
School education accounted for ₹54,874 crore, reflecting a 2.2% rise from the prior year’s spending. Higher education received ₹38,351 crore, up 1.9% from the actual expenditure recorded in the previous fiscal. While the increments were modest, the budget set the tone for NEP-driven reforms that would gain momentum in subsequent years.
Union Budget 2022-23: A Significant Leap Forward
The 2022 budget brought a substantial boost, with the education ministry receiving ₹1.04 lakh crore—an 18.5% jump over the revised estimates of 2021-22. The focus was clearly on improving educational infrastructure and expanding access across the country.
School education saw an allocation of ₹63,449.37 crore, a sharp 22.1% increase from the revised figures of the previous year. Higher education received ₹40,828 crore, up 13.3% from revised estimates. Special emphasis was placed on model schools, teacher training programs, and scholarships for students at select institutions. The budget signaled a clear intent to strengthen the foundational pillars of the education system.
Union Budget 2023-24: Prioritizing Holistic Education
The 2023 budget allocated ₹1,12,899 crore to the education ministry, marking a 13% increase from the previous year. This figure represented approximately 2.9% of the government’s total estimated expenditure for the fiscal year. Notably, the Samagra Shiksha Abhiyan—the flagship scheme for school education—received a dedicated allocation of ₹37,453 crore.
School education was allotted ₹68,805 crore, a 16.5% increase over the revised estimates of 2022-23. Higher education received ₹44,095 crore, reflecting an 8% rise from earlier projections. In a significant move, the budget also announced the recruitment of over 38,000 teachers for Eklavya Model Residential Schools, aimed at strengthening education for tribal communities.
Union Budget 2024-25: Expanding Reach and Skill Development
The 2024 budget took a broader approach, focusing not just on academic education but also on employability. Under the Skill India Mission, the government trained and upskilled 1.4 crore young individuals during this period. The higher education landscape also witnessed notable expansion, with the establishment of 7 new IITs, 16 IIITs, 15 AIIMS, and 7 IIMs.
The overarching objective of this budget was twofold: widen access to quality education and prepare a skilled, job-ready workforce. The emphasis on vocational training and institutional expansion reflected a shift toward aligning education with market demands and economic growth.
Union Budget 2025-26: Continued Growth with a Focus on Quality
In the most recent budget, education received an allocation of ₹1,28,650.05 crore, registering a 6.65% increase from the previous fiscal year. This followed the combined allocation of ₹1.48 lakh crore for education, employment, and skill development in 2024, of which approximately ₹1.21 lakh crore was dedicated to school and higher education.
The 2025 budget continued the upward trajectory in education spending, with a clear emphasis on improving learning outcomes, modernizing curricula, and bridging gaps in access. While the year-on-year growth was more measured compared to earlier spikes, the sustained investment signals a long-term commitment to transforming India’s education ecosystem.
Key Takeaways from Five Years of Education Budgets
Over the past five years, India’s education budget has grown by nearly 38%, from ₹93,224 crore in 2021-22 to ₹1,28,650 crore in 2025-26. This period has been marked by several important trends:
- Consistent year-on-year growth: Despite economic fluctuations, education spending has never been cut, reflecting its status as a national priority.
- NEP-driven reforms: Budget allocations have increasingly aligned with the goals of the National Education Policy, focusing on foundational literacy, teacher training, and digital integration.
- Expansion of higher education: The establishment of new IITs, IIMs, AIIMS, and central universities has been a recurring theme, aimed at improving access to quality higher education.
- Skill development integration: The blending of education with vocational training and skill development has become a central pillar of budget planning.
- Focus on underserved regions: Initiatives like Eklavya schools and the central university in Leh highlight efforts to bring education to remote and marginalized communities.
As the 2026 budget approaches, stakeholders across the education sector will be watching closely to see how these trends evolve. With the continued push for digital learning, research innovation, and global competitiveness, the upcoming budget is expected to build on the foundations laid over the past five years—shaping the future of education for millions of students across the country.
