Education and skilling have been placed at the centre of India’s long-term growth plan in the Union Budget 2026–27. The government has allocated Rs 1.39 lakh crore to the education ministry, an increase of 8.27 per cent compared to last year.Click Here To Follow Our WhatsApp Channel
The allocation makes up around 2.6 per cent of the total estimated expenditure of Rs 53.5 lakh crore for 2026–27.
Presenting the budget in Parliament, Union Finance Minister Nirmala Sitharaman announced several major steps for the education and skilling sector. These include plans to develop five University Townships, set up veterinary and para-veterinary colleges, establish Animation, Visual Effects, Gaming and Comics (AVGC) Content Creator Labs, and create a National Institute of Hospitality.
Out of the total allocation, Rs 83,562.26 crore has been set aside for school education, while Rs 55,727 crore has been allocated for higher education. School education funding has grown by 6.35 per cent, while higher education has seen a bigger rise of 11.28 per cent.
In the previous financial year 2025–26, the education ministry was allocated Rs 1.28 lakh crore.
Welcoming the higher allocation, Union Education Minister Dharmendra Pradhan said the budget reflects the vision of Prime Minister Narendra Modi and the Finance Minister to achieve the goal of a developed India.
He said the education budget has increased from Rs 1.28 lakh crore last year to nearly Rs 1.39 lakh crore this year. He also announced plans to build girls’ hostels in every state with the support of state governments, especially to encourage women in science and technology. A university council will also be developed to improve education infrastructure and support a knowledge-based economy.
Among key announcements, the government proposed setting up a high-powered Education-to-Employment and Enterprise Standing Committee. This body will help align education with job creation, services growth, and new technologies such as artificial intelligence.
The Finance Minister also announced plans to upgrade telescope facilities and create new centres at four locations to support studies in astrophysics and astronomy.
For students, the budget brought major relief by reducing Tax Collected at Source (TCS) under the Liberalised Remittance Scheme for education and medical purposes from 5 per cent to 2 per cent. TCS on overseas tour packages has also been cut to 2 per cent, with no minimum limit.
To strengthen higher education, the budget proposed developing five University Townships near major industrial and logistics corridors. These townships aim to combine education, research, and skill training in one place.
The budget also focuses on inclusivity, with a proposal to build one girls’ hostel in every district, especially to support women studying STEM subjects.
To address the shortage of veterinary professionals, the government announced a loan-linked capital subsidy to support private veterinary and para-veterinary colleges, hospitals, labs, and breeding centres. This move aims to add more than 20,000 professionals.
Recognising the fast-growing AVGC sector, which is expected to need two million professionals by 2030, the Finance Minister proposed support for the Indian Institute of Creative Technologies, Mumbai, to set up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges.
The budget also proposed upgrading the National Council for Hotel Management and Catering Technology into a National Institute of Hospitality. A pilot scheme will also train 10,000 tourist guides across 20 tourist sites through a 12-week hybrid programme, in collaboration with an Indian Institute of Management.
Reacting to the budget, former UGC Chairman Mamidala Jagadesh Kumar said the higher allocation shows India’s strong commitment to investing in people, knowledge, and skills in line with the National Education Policy.
He added that key schemes continue to receive strong support, including Rs 42,100 crore for Samagra Shiksha, Rs 12,750 crore for PM POSHAN, and Rs 7,500 crore for PM SHRI Schools.
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