In FY25, the government is expected to spend ₹47,619 crores on higher education. The allocation declined by ₹9,624 crore, when compared with the revised estimates for the year FY24. The reduction in overall spending on higher education, when compared with the revised estimates, is reflected in the money spent on the Indian Institute of Technology (IITs) and the Indian Institute of Management (IIMs). The allocations to these institutes also declined.
In absolute terms, the government is expected to spend ₹10,324 crore on IITs and ₹212 crore on IIMs, a reduction of ₹60 crore and ₹119 crore respectively, compared with FY24’s revised estimates. While absolute change in allocation gives an idea of what the government is focussing on, analysing the allocations as a share of the total Budget is more prudent.
Chart 1 shows the allocation to higher education as a share of the total Budget, across years.
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In FY25, the government is expected to spend 1% of its total Budget on higher education. The share decreased from 1.27% in FY24 (revised estimates).
Chart 2 shows the allocation to IITs as a share of the total Budget, across years.
In FY25, the government is expected to spend 0.22% of its total Budget on IITs. The share marginally decreased from 0.23% in FY24 (revised estimate).
Chart 3 shows the allocation to IIMs as a share of the total Budget, across years. In FY25, the government is expected to spend 0.004% of its total Budget on higher education.
The share marginally decreased from 0.007% in FY24 (revised estimate).
If the pandemic years and the recovery period are not considered, the proposed spending in FY25 on higher education (including IIMs and IITs) is the lowest in the recent past, as a share of the total Budget.
Also read: Interim Budget 2024-2025 documents presented by FM Nirmala Sitharaman