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Union Education Minister Dharmendra Pradhan, while praising Budget 2026-27, described it as a youth-powered budget. He said the Budget would boost education and employment generation and define the direction for the country’s next phase of growth. The minister stated that the total allocation for the Ministry of Education has increased to ₹139,289.48 crore, which is 8.27 per cent higher than in 2025-26.
Pradhan said the Union Budget 2026-27 is a strong roadmap to fully utilise India’s growth potential, ensure inclusive development for all sections of society and achieve the goal of a Developed India. Thanking Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, he said the Budget has been prepared with a future-oriented approach that will empower youth, promote employment and serve the interests of the common people. He added that the Budget will bring relief and happiness to poor and middle-class families.
The minister said the Budget is inspired by three key objectives: accelerating and sustaining economic growth, fulfilling people’s aspirations and ensuring access to opportunities and resources for all. He noted that the Budget will strengthen education, innovation and skill development, empower the MSME sector, boost tourism, improve healthcare services and transform Tier-II and Tier-III cities into new growth centres. This will accelerate the pace of reforms and ensure direct benefits for 1.4 billion citizens.
He further said that the three duties outlined by the Finance Minister, among other things, focus on strengthening the capabilities of youth to achieve the goal of Aatmanirbhar Bharat.
The minister highlighted that India has achieved one of the highest levels of women’s participation in STEM education globally. To further increase and encourage the enrolment of girls in STEM institutions and courses, the government will establish one girls’ hostel in every district through viability gap funding and capital support.
Pradhan also said the Budget proposes the establishment of five university townships near major industrial and logistics corridors. These planned education zones will house multiple universities, colleges, research institutions, skill centres and residential facilities.
He stated that a high-level standing committee on Education to Employment and Enterprise has been proposed, with a special focus on the services sector. This committee will play a crucial role in advancing the vision of Developed India. It will study the impact of emerging technologies such as artificial intelligence (AI) on employment and skill requirements, and will recommend measures such as introducing AI into school curricula and strengthening SCERT institutions for teacher training.
The Education Minister also welcomed the proposal to set up Animation, Visual Effects, Gaming and Comics (AVGC) content creator labs in 15,000 secondary schools and 500 colleges. He said the initiative aims to prepare and provide a strong platform for 2 million professionals for the rapidly growing AVGC sector by 2030.
Key Budget Allocations 2026-27
Higher Education
For FY 2026-27, the total budget allocation for higher education is ₹55,727.22 crore, including ₹10,142.40 crore under plan expenditure and ₹45,584.82 crore under non-plan expenditure. This represents an increase of ₹5,649.27 crore (11.28 per cent) compared to FY 2025-26.
Allocations to Major Autonomous Bodies (Higher Education)
Central universities have been allocated ₹17,440.00 crore, which is ₹748.69 crore (4.49 per cent) higher than in 2025-26. The University Grants Commission (UGC) has received ₹3,709.00 crore for 2026-27, an increase of ₹373.03 crore (11.18 per cent).
The Indian Institutes of Technology (IITs) have been allocated ₹12,123.00 crore for 2026-27, which is ₹774.00 crore (6.82 per cent) more than the previous year. National Institutes of Technology (NITs) have received ₹6,260.00 crore, reflecting an increase of ₹572.53 crore (10.07 per cent). Deemed universities have been allocated ₹650.00 crore, ₹46 crore (7.62 per cent) higher than in 2025-26, while ₹292.00 crore has been earmarked to support Indian Institutes of Management (IIMs), an increase of ₹40.11 crore (15.92 per cent).
Allocations for Key Schemes (Higher Education)
The PM One Nation One Subscription (PM-ONOS) scheme has been allocated ₹2,200.00 crore for FY 2026-27. The PM Research Chair (PMRC) scheme is a new initiative launched in 2026-27 with an allocation of ₹200.00 crore.
A new scheme for Centres of Excellence (CoEs) in Artificial Intelligence for education has been introduced with an allocation of ₹100.00 crore. World-class institutions have been allocated ₹900.00 crore, which is ₹424.88 crore (89.43 per cent) higher than in 2025-26.
Under the Multidisciplinary Education and Research Improvement in Technical Education – EAP (MERITE) scheme, ₹300 crore has been allocated for FY 2026-27, an increase of ₹80.00 crore (36.36 per cent). The scheme for establishing three Centres of Excellence in AI has been allocated ₹250 crore, which is ₹50.00 crore (25.00 per cent) higher than last year. The PM-USHA scheme has received ₹1,850 crore, up by ₹35.00 crore (1.93 per cent), while the PM-USP scheme has been allocated ₹1,560 crore.
The National Apprenticeship Training Scheme (NATS) has received ₹1,250.00 crore for FY 2026-27, an increase of ₹72.00 crore (6.11 per cent). The PM Research Fellowship (PMRF) scheme has been allocated ₹600 crore and ₹650 crore has been earmarked for the National Mission on Education through ICT.
School Education and Literacy
For FY 2026-27, the School Education and Literacy Department has been allocated a total of ₹83,562 crore, the highest ever. This represents an increase of ₹4,990 crore (6.35 per cent) compared to the 2025-26 budget estimate, and an increase of ₹12,995 crore (18.42 percent) compared to the revised estimate of 2025–26.
The Kendriya Vidyalaya Sangathan (KVS) and Navodaya Vidyalaya Samiti (NVS) have also received their highest-ever allocations, with ₹10,129.41 crore for KVS and ₹6,025 crore for NVS. This is ₹625.57 crore more for KVS and ₹719.77 crore more for NVS compared to 2025-26.
Major schemes have also seen increased allocations in FY 2026-27. Compared to the 2025–26 budget estimate, Samagra Shiksha has received an additional ₹850.02 crore and PM-Poshan an additional ₹250 crore. Compared to the revised estimates of 2025-26, allocations have increased by ₹4,100 crore (10.79 per cent) for Samagra Shiksha, ₹2,150 crore (20.28 per cent) for PM-Poshan, and ₹3,000 crore (66.67 per cent) for the PM-SHRI scheme.
A new flagship initiative, Atal Tinkering Labs (ATL), has been launched under the central sector schemes of the School Education and Literacy Department. The scheme was introduced in the revised estimate stage of 2025–26 and has been allocated ₹3,200 crore for FY 2026-27.
Out of the total budget of ₹83,562.26 crore for FY 2026-27, ₹66,641.02 crore has been earmarked for plan expenditure and ₹16,921.24 crore for non-plan expenditure. Plan expenditure has increased by ₹3,552.02 crore (5.63 per cent) compared to 2025-26, while compared to the revised estimate of 2025-26, plan expenditure has risen by ₹12,032 crore (22.03 per cent) and non-plan expenditure by ₹963.12 crore (6.04 per cent).
Key Decisions of Budget 2026-27
The Union Education Minister praised the historic Budget 2026-27 presented on Sunday, calling it a youth-driven budget. With this, the total allocation for the Ministry of Education has reached ₹139,289.48 crore, marking an increase of 8.27 per cent over the 2025-26 budget estimate.
This allocation will enable the establishment of five university townships comprising universities, colleges, research institutions, skill centres and residential complexes, the setting up of one girls’ hostel in every district and the formation of a high-level standing committee on Education to Employment and Enterprise focused on the services sector.
Overall, the education budget for 2026-27 will empower youth, give new direction to education and employment and play a significant role in achieving the goal of Aatmanirbhar Bharat.
