Union Budget 2025: Significant Increase in Higher Education Funding

Synopsis
On February 1, the Union government announced a notable increase of 7.74% in the higher education budget for 2025-26, raising it to Rs 50,077.95 crore. This funding aims to enhance educational quality, support research, and expand access to learning across the country.
Key Takeaways
- 7.74% increase in higher education budget
- Allocation of Rs 50,077.95 crore for 2025-26
- Support for Central Universities raised to Rs 16,146.11 crore
- New initiatives for AI and skilling centers
- Boost in Student Financial Aid by 68%
New Delhi, Feb 1 (NationPress) In a significant initiative, the Union government has elevated the budget for higher education by 7.74 percent, increasing it from Rs 46,482.35 crore in 2024-25 to Rs 50,077.95 crore for the fiscal year 2025-26.
According to UGC Chairman Prof. M. Jagadesh Kumar, this augmented budget will empower higher educational institutions to further improve the quality of education, foster research and innovation, and broaden access to higher learning for all.
The Union Budget 2025-26 has earmarked Rs 16,146.11 crore for Central Universities, up from Rs 15,538.23 crore in the prior financial year.
The UGC emphasized that this additional financing will enable institutions to enhance their infrastructure, support research initiatives, and provide quality education nationwide.
“Funding for Centrally Sponsored Schemes has also risen to Rs 1815 crore, which will strengthen the PM-USHA and RUSA programs, ultimately benefiting students,” noted the UGC Chairman.
He remarked that the notable rise in Student Financial Aid to Rs 2160 crore in the Union Budget 2025-26 is noteworthy.
“This remarkable increase of over 68 percent highlights the government's dedication to making higher education accessible to all, irrespective of their financial situation,” he added.
The UGC Chairman also welcomed the Bharatiya Bhasha Pustak scheme, which aims to ensure access to digital learning resources in Indian languages, thereby promoting inclusivity and enhancing the educational experience.
“An increase in funding for the Indian Knowledge System, rising from Rs 10 crore to Rs 50 crore in the 2025-26 budget, will empower researchers and institutions to further explore, document, and share India’s invaluable intellectual contributions. This initiative will significantly support UGC's efforts in preparing 22,000 textbooks for UG and PG studies in 22 Indian languages,” he explained.
He further noted that the establishment of five National Centers of Excellence for Skilling, equipped with global expertise, is a major step towards equipping youth with industry-relevant skills and improving their employability.
“The formation of a Centre of Excellence for AI in education, with an investment of Rs 500 crore, reflects the government’s acknowledgment of AI's transformative role in the future of learning,” he said.
Kumar highlighted that expanding and adding new infrastructure for five IITs and creating 5,000 additional seats will significantly improve access to quality higher education.
“Funding for digitizing the storage system for academic credits via the Academic Bank of Credits has also been raised to Rs 16 crore,” he noted.
Kumar pointed out that the PM Research Fellowship program, which offers 10,000 scholarships over the next five years, will enhance technological research in premier institutions like IITs and IISc, fostering a culture of innovation and research excellence.
“UGC is dedicated to collaborating with all stakeholders to ensure effective implementation of these initiatives and achieve the vision of the National Education Policy 2020,” he stated.
Kumar emphasized that UGC, as a leading implementation agency of the NEP 2020, is optimistic about building a future where education empowers and innovation flourishes.
“Our youth will lead the way towards a brighter tomorrow. This budget reinforces the spirit of Viksit Bharat,” Kumar concluded.