Why Education Funding Must Be Seen as an Ecosystem, Not Just a Ministry’s Allocation

Opinion
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

While we are discussing the issue of education funding, the first thing that comes to our mind is the expenditure of the ministry of education only. However, the creation of knowledge is not the responsibility of one ministry only but many ministries, missions and research & development institutions are involved and the result of their work may not only come through the availability of funds but also their implementation, absorption at the state, level and institutional governance.

Every year as the Union Budget is presented, the same old argument is heard: education does not get enough funding. We agree on one point only; a nation's most valuable long, term investment is in education. However, some people during the debate only focus on the ministry of education (MoE) and thus neglect the funding of education and research through various ministries, mission agencies, and research and development institutions.

Hence, we should not lose sight of the bigger picture and focus on the whole ecosystem as well as the path we have chosen as a nation through consistent budgetary allocations for school education, higher education and research capacity, in line with the National Education Policy, 2020 which sets the 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's start with the most obvious indication: the MoE budget itself. In the year 2024, 25, the MoE was given a budget of 1, 20, 628 crores, which rose to 1, 28, 650 crores in 2025, 26. Out of these funds, school education is granted the largest share and rightly so. In 2024, 25, the department of school education and literacy was given the allocation of 73, 008 crores, which rose to 78, 572 crores in 2025, 26.

Flagship programmes are given a solid funding base. Take the Samagra Shiksha Abhiyan, for example, it was given a 41, 250 crore budget in 2025, 26, and PM Poshan was granted 12, 500 crore. These programmes are designed for foundation learning, teacher capacity, school infrastructure and inclusion. They influence retention, learning outcomes and equity, especially for rural children and those students belonging to the socio, economically weaker sections.

So, what about higher education? In 2025, 26, the MoE department of higher education got a budget of 50, 078 crore. Of this, 16, 691 crore was set aside for central universities and 11, 349 crore for IITs. These grants enable nationally important institutions and central universities to maintain their capacity, labs, faculty positions and student services. Notably, through PM, Usha, the Budget also supports state universities and their goal to improve teaching, research facilities and student support.

However, financial resources only do not translate into results. 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 investing in education and research through various ministries. The Ministry of Education (MoE) is the major source of funding to educational institutions such as schools and universities as well as scholarships and research; the Department of Science and Technology (DST) along with the national missions support the cutting, edge R&D and the system of translation, which also carries major provisions such as the RDI scheme; the Department of Atomic Energy (DAE) and the strategic science establishments mainly focus on deep research and advanced training ecosystems; while the Advanced Nuclear Research Facility (ANRF) is a landmark national research, funding pillar.

Hence, we should not be asking how much India is spending on education and research but rather whether we are spending in a smart way so that Viksit Bharat 2047 can be a viable goal.

EdInbox is a leading platform specializing in comprehensive entrance exam management services, guiding students toward academic success. Catering to a diverse audience, EdInbox covers a wide spectrum of topics ranging from educational policy updates to innovations in teaching methodologies. Whether you're a student, educator, or education enthusiast, EdInbox offers curated content that keeps you informed and engaged.

With a user-friendly interface and a commitment to delivering accurate and relevant information, EdInbox ensures that its readers stay ahead in the dynamic field of education. Whether it's the latest trends in digital learning or expert analyses on global educational developments, EdInbox serves as a reliable resource for anyone passionate about staying informed in the realm of education. For education news seekers, EdInbox is your go-to platform for staying connected and informed in today's fast-paced educational landscape.