Budget allocations undercut vision of New Education Policy
Incremental increases in education spending will not address key challenges.
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The Union Budget 2025 presented on February 1 increased allocations for the education sector only marginally and is unlikely to realise the ambitious goals set out in the New Education Policy, 2020. The allocation of Rs 1.28 lakh crore out of a total outlay of Rs 50.65 lakh crore is 6.65% higher than the previous year. But it is merely 2.54% total budget (0.4% of the gross domestic product, as per current estimates).
The New Education Policy seeks to fundamentally restructure India’s education system. Yet, as per the Ministry of Education’s budget estimates, public spending on education (by both state and Centre) has been stagnant at 4.2%-4.6% of the gross domestic product since 2019.
The Reserve Bank of India estimates that spending on education is even lower, at 2.7% of GDP. This is well below the benchmark of 6% recommended decades ago by the Kothari Commission on Education in 1966.
The mid-day meal programme, crucial for retaining children and ensuring regular attendance in elementary schools, has also not been given funds to adequately compensate for inflation and rising costs.
In this article, the budget estimates for 2024-’25 have been compared with the allocations proposed in the budget for 2025-’26.
Education funding
Among ministries, the education ranks 10th with allocations lower than the funds for road, transport...
