A broader view of education budget

While debating education funding, we tend to focus only on the ministry of education’s budgetary allotment. But knowledge creation is supported by multiple ministries, missions and R&D institutions. And funding alone does not ensure outcomes. We must also focus on implementation, state-level absorption and institutional governance
Human capital and knowledge creation emanate from across general education, health, science and technology and skilling
Human capital and knowledge creation emanate from across general education, health, science and technology and skilling(Photo | AFP)
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When the Union Budget is presented every year, we hear a familiar argument: education is underfunded. We all agree on one point: education is the best long-term investment a nation can make. But in these debates, some focus only on the ministry of education (MoE) and ignore funding in education and research that comes through multiple ministries, mission agencies, and research and development institutions.

To keep our discussion balanced, we must therefore focus on the ecosystem as a whole and the direction we have set for ourselves as a nation through steady budgetary allocations for school education, higher education and research capacity, aligned with the National Education Policy, 2020 goals of access, equity, quality and excellence.

Human capital and knowledge creation emanate from across general education, health, agriculture, defence, atomic energy, space, science and technology, and skilling. Budget support also flows through large national missions, scholarship pipelines, institutional grants and research funding structures. We must underline that this support is not provided solely by MoE. Multiple ministries are involved in building a future-ready workforce and a strong research base.

Let us start with the most visible indicator: the MoE allocation itself. In 2024-25, the MoE was allocated ₹1,20,628 crore, which rose to ₹1,28,650 crore in 2025-26. Within this, school education gets the largest share and rightly so. In 2024-25, the department of school education and literacy received ₹73,008 crore, rising in 2025-26 to ₹78,572 crore.

Flagship programmes receive sustained support. For instance, the Samagra Shiksha Abhiyan received ₹41,250 crore in 2025-26, and PM Poshan was funded at ₹12,500 crore. These schemes support foundational learning, teacher capacity, school infrastructure and inclusion. They directly inform retention, learning outcomes and equity, especially for rural children and students from socio-economically weaker sections.

Let’s now look at higher education. In 2025-26, the MoE department of higher education was allocated ₹50,078 crore. Out of this, the share for central universities was ₹16,691 crore, and for IITs ₹11,349 crore. This funding supports capacity, laboratories, faculty positions and student services in nationally important institutions and central universities. Importantly, the Budget also backs state universities through PM-Usha, which focuses on upgrading teaching, research facilities and student support.

But funding alone does not result in outcomes. What is required is better execution capacity. We must also focus on implementation, state-level absorption and institutional governance. 

Funding through sectoral systems is a common practice in modern economies. Medical education and healthcare training involve large central institutions and public health systems. Agriculture education and research are vital for food security and rural livelihoods. There are dedicated institutions for defence education, strategy and advanced technology training. Space and atomic energy maintain world-class scientific establishments that train and employ thousands of researchers and engineers. So, to answer ‘How much does India spend on education and research?’, we must take a holistic view including these diverse channels.

The department of science and technology’s (DST) budget for 2025-26 is ₹28,508.90 crore. This allocation includes a major push through the Research, Development and Innovation scheme, a deliberate effort to crowd in private R&D and accelerate lab-to-market innovation in priority sectors.

The department of atomic energy has a gross outlay of ₹37,482.93 crore for 2025-26. Beyond power projects and strategic programmes, the department supports research training, specialised higher education institutions and research boards. All these funding channels also support higher education and research funding, even when they do not fall under the MoE. 

Another incomplete habit in public debate is treating ‘research funding’ as if it were only about one grant programme. In reality, capacity grows when the country funds researchers, labs and infrastructure, mission programmes, translation mechanisms and predictable institutions.

The Anusandhan National Research Foundation (ANRF) is one such institutionalised mechanism. ANRF, allotted ₹966 crore in 2024-25, is for building a national-level funding and coordination capability. It aims for industry partnerships, competitiveness and inclusive participation. Similarly, the DST funds modern, high-impact programmes such as cyber-physical systems, quantum mission and supercomputing. These areas define India’s competitiveness in the AI age. 

For the country, funding education and research ecosystems is aimed at building economic and strategic capability. When higher education improves employability, India gets a stronger workforce. Increasing research funding can increase patent filings, improve industrial processes, develop stronger health technologies and deliver climate-resilient solutions.

The message from recent budget announcements is clear. India is funding education and research through multiple ministries. MoE funds schools, universities, scholarships, and research; DST and the national missions fund frontier R&D and translation mechanisms, including significant provisions such as the RDI scheme; DAE and strategic science establishments focus on deep research and advanced training ecosystems; and ANRF stands as a national research-funding pillar. 

Therefore, the question we should ask is not what India is spending on education and research, but whether we are spending smartly so that Viksit Bharat 2047 becomes a practical goal.

Mamidala Jagadesh Kumar | Former Chairman, UGC and former Vice Chancellor, JNU

(Views are personal)

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