Union Budget 2025: Focus on Education, Health, and Middle-Class Tax Relief Expected

In Union Budget 2024, the government allocated ₹1.48 lakh crore to education, employment, and skilling

Union Finance Minister Nirmala Sitharaman will present the Union Budget 2025-26 today, with a strong emphasis on education, healthcare, and potential tax relief for the middle class. The education sector, in particular, is looking for a substantial increase in budgetary allocations to meet the National Education Policy (NEP) 2020 target of 6% of GDP for public education spending.

₹1.48 Lakh Crore Allocated to Education, Employment, and Skilling Last Year

In Union Budget 2024, the government allocated ₹1.48 lakh crore to education, employment, and skilling, a significant rise aimed at strengthening human capital development. Out of this, ₹1.12 lakh crore was specifically earmarked for the education sector, reflecting a 13% increase from the previous year. Despite this boost, experts argue that further investments are needed to improve school infrastructure, digital learning accessibility, and research funding. Stakeholders are pushing for increased spending to bridge the urban-rural education divide, strengthen internet connectivity, and expand vocational training to equip students with industry-relevant skills.

A day before the budget presentation, Nirmala Sitharaman tabled the Economic Survey 2024-25 in Parliament. The survey highlighted that India’s school system serves 24.8 crore students across 14.72 lakh schools, with government schools making up 69% of the total institutions. However, private schools enroll 32.6% of students, reflecting the increasing demand for quality education. The Gross Enrolment Ratio (GER) has reached 93% in primary education, but challenges remain at the secondary (77.4%) and higher secondary (56.2%) levels. The NEP 2020 aims for 100% GER by 2030, making higher budgetary allocations essential to achieve inclusive and equitable education.

Skill Development and Research in Focus

The Union Budget 2025 is also expected to emphasize vocational training and skilling programs, particularly in artificial intelligence, green energy, and financial technology. As India transitions toward a knowledge-driven economy, increased funding for research, innovation, and digital skilling will be crucial. Experts suggest that scholarship programs, interest-free education loans, and research grants should be expanded to encourage greater student participation in higher education and cutting-edge research.

High Cost of Medical Education a Concern

The Economic Survey 2024-25 also flagged the high cost of medical education in India, which continues to push thousands of students to pursue MBBS degrees abroad in China, Russia, Ukraine, the Philippines, and Bangladesh. Private sector MBBS fees range from ₹60 lakh to over ₹1 crore, making it unaffordable for many aspirants. The survey called for greater affordability in medical education to reduce students' dependence on foreign universities and the licensing challenges they face upon returning to India.

As Nirmala Sitharaman presents the Union Budget 2025, expectations are high for transformative investments in education, skill development, and healthcare, which will play a key role in shaping India’s workforce and economic future.

Read More:

• School Dropout Decline to 1.9% for Primary, 5.2% for Upper Primary, 14.1% for Secondary: Economic Survey 2024-25
• Industry Association Seeks Cost Reduction, Tax Reforms in Education Sector Ahead of Union Budget 2025