New Delhi [India], February 1 : With education and skilling placed at the core of India's long-term growth strategy in the Union Budget 2026-27, the government has allocated Rs 1.39 lakh crore to the education ministry, marking an 8.27 per cent increase over the previous financial year.
The allocation accounts for around 2.6 per cent of the total estimated expenditure of Rs 53.5 lakh crore for 2026-27.
Presenting the Union Budget in Parliament, Union Finance Minister Nirmala Sitharaman announced a slew of measures for the education and skilling sector, including the development of five University Townships, establishment of veterinary and para-veterinary colleges, setting up Animation, Visual Effects, Gaming and Comics (AVGC) Content Creator Labs, and creation of a National Institute of Hospitality.
Of the total allocation, Rs 83,562.26 crore has been earmarked for school education, while Rs 55,727 crore has been allocated for higher education. The budgets for school and higher education registered growth of 6.35 per cent and 11.28 per cent, respectively.
The education ministry was allocated Rs 1.28 lakh crore in FY 25-26.
Welcoming the enhanced allocation, Union Education Minister Dharmendra Pradhan said the budget reflects the vision of Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to achieve the goal of a developed India.
"To achieve the goal of a developed India, the budget this time is reflected in the excellent arrangements of the Prime Minister's vision and the Minister of Finance, Nirmala Sitharaman. I would like to congratulate them on some points from the Education Department. The budget this time is bigger than the budget last time," he said.
"Last year's budget allocation was Rs 1 lakh 28 thousand 650 crore, which has now been increased to Rs 1 lakh 39 thousand 299 crore, 8.27% rise compared to the last budget... Women have contributed significantly to the field of science and technology, more so than in many other nations. To further promote this growth, we plan to establish girls' hostels in every state in collaboration with the respective state governments... We also plan to develop university council for the overall advancement of educational infrastructure and to create a knowledge-based economy," he added.
Among key announcements, the government proposed setting up a high-powered Education-to-Employment and Enterprise Standing Committee to align education with jobs, services growth, and emerging technologies such as artificial intelligence.
The Finance Minister also announced plans to upgrade telescope infrastructure facilities and establish new setups at four locations to promote studies in astrophysics and astronomy.
In a major relief for students, the government proposed reducing Tax Collected at Source (TCS) under the Liberalised Remittance Scheme (LRS) for education and medical purposes from 5 per cent to 2 per cent. TCS on overseas tour packages has also been reduced to 2 per cent, without any threshold limit.
To strengthen higher education infrastructure, the Budget proposed the development of five University Townships near major industrial and logistics corridors, aimed at creating integrated hubs of education, research, and skilling.
The Budget also prioritises inclusivity, proposing the establishment of one girls' hostel in every district, particularly to support women pursuing higher education in STEM fields.
To address the shortage of veterinary professionals, a loan-linked capital subsidy has been proposed to support the establishment of veterinary and para-veterinary colleges, hospitals, diagnostic laboratories, and breeding facilities in the private sector, with the aim of adding over 20,000 professionals.
Recognising the growing potential of India's Animation, Visual Effects, Gaming and Comics (AVGC) sector, projected to require 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, envisioned as a bridge between academia, industry, and government. Additionally, a pilot scheme has been announced to upskill 10,000 tourist guides across 20 tourist sites through a 12-week hybrid training programme in collaboration with an Indian Institute of Management.
Reacting to the Budget, former UGC Chairman Mamidala Jagadesh Kumar said the enhanced allocation signals India's commitment to investing in people, knowledge, and skills in line with the goals of the National Education Policy.
"The Ministry of Education's Budget has risen from ₹1,28,650 crore in 2025-26 to ₹1,39,289 crore in 2026-27, which is a positive sign," he said.
He noted that flagship 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.