The Ministry of Education provided a detailed overview of funding patterns in higher education in response to a Rajya Sabha question. Education being in the Concurrent List, both Central and State Governments share responsibility for increasing expenditure in education. The Central Government has consistently increased budget allocation for the Department of Higher Education from ₹34,006.39 crore in 2021-22 to ₹50,747.66 crore in 2025-26, representing significant growth in education funding.
Key Schemes and Initiatives
The Department of Higher Education implements Rashtriya Uchchatar Shiksha Abhiyan (RUSA), a Centrally Sponsored Scheme aimed at funding specific State government universities and colleges to improve quality and ensure conformity to prescribed norms and standards. In alignment with National Education Policy 2020, the government launched the third phase of RUSA in June 2023 as Pradhan Mantri Uchchatar Shiksha Abhiyan (PM-USHA) with an outlay of ₹12,926.10 crore for the period 2023-24 to 2025-26 to cater to educationally unserved/underserved areas. The scheme has been extended until March 31, 2028.
Under PM-USHA, priority is given to Focus Districts identified by States/UTs based on criteria including low Gross Enrolment Ratio, Gender Parity, population and enrollment proportions for females, transgenders, Scheduled Castes, Scheduled Tribes, and Other Backward Classes, as well as Aspirational/Border Area/Left Wing Extremism prone districts. Support is provided for strengthening infrastructure including construction of hostels, academic and administrative buildings, laboratories, and other facilities required for improving access and quality in higher education.
State-wise Fund Allocation
The annexure provides detailed state-wise central share releases under RUSA/PM-USHA over the last five fiscal years (2021-22 to 2025-26). The total releases were ₹249.13 crore in 2021-22, ₹359.50 crore in 2022-23, ₹181.06 crore in 2023-24, ₹350.83 crore in 2024-25, and ₹864.25 crore in 2025-26, making a grand total of ₹2,004.77 crore over the five-year period. Maharashtra received the highest allocation in 2025-26 at ₹92.49 crore, followed by Uttar Pradesh at ₹98.99 crore and Assam at ₹64.34 crore.
Expansion Initiatives
In pursuance of the Budget announcement 2025-26, the government approved expansion of academic and infrastructure capacity including creation of Research Park at five new IITs established in Andhra Pradesh (IIT Tirupati), Kerala (IIT Palakkad), Chhattisgarh (IIT Bhilai), Jammu & Kashmir (IIT Jammu), and Karnataka (IIT Dharwad) with a total outlay of ₹11,828.79 crore, which would facilitate education for additional 6,500 students.
Union Budget 2026-27 announced setting up of 5 University Townships in the vicinity of major industrial and logistic corridors and 1 girls' hostel in every district through Viability Gap Funding/capital support to encourage enrollment of girls in STEM institutes/courses. The information was provided by the Minister of State for Education, Dr. Sukanta Majumdar, in a written reply in the Rajya Sabha.