The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, has allocated a record Rs 1.39 lakh crore to the Ministry of Education, marking an increase of approximately 8.27% from the previous year’s Rs 1.28 lakh crore. This represents the highest-ever budgetary support for the sector, with a strong emphasis on skilling, employability, innovation, and alignment with the National Education Policy (NEP) 2020.
The allocation breaks down as follows:
- Department of School Education and Literacy: Rs 83,562.26 crore (up around 6.35% from the prior year), focusing on foundational learning, infrastructure, and schemes like Samagra Shiksha.
- Department of Higher Education: Rs 55,727.22 crore (reflecting an 11.28% rise in key areas), prioritizing research, training, and future-ready initiatives.
Despite the nominal increase and record figures, experts and stakeholders have criticized the allocation as falling short of the NEP 2020’s long-standing recommendation to devote 6% of GDP to public education (including combined central and state spending). Current public expenditure on education hovers around 4-4.6% of GDP, with the Union Budget’s share at roughly 2.6% of total government expenditure (against a total budget outlay of Rs 53.5 lakh crore for FY27). Critics argue this remains inadequate to address India’s scale of challenges in human capital development, teacher training, infrastructure gaps, and achieving goals like raising the higher education Gross Enrolment Ratio to 50% by 2035.
Key Highlights and Initiatives in Education
The Budget emphasizes linking education to employment, enterprise, and emerging sectors:
- Establishment of five University Townships to integrate universities, research institutions, skill centers, and residential facilities.
- One girls’ hostel in every district to boost access to STEM education for female students and address gender disparities in higher education.
- Support for the Indian Institute of Creative Technologies, Mumbai, to set up AVGC (Animation, Visual Effects, Gaming, Comics) Content Creator Labs in 15,000 secondary schools and 500 colleges.
- Creation of a high-powered “Education to Employment and Enterprise” Standing Committee to align curricula with industry needs and emerging skills in services and technology sectors.
- Additional focus on medical and allied education, design innovation, and content creation labs.
Other notable points include expansions in schemes like Kendriya Vidyalaya Sangathan (Rs 10,129 crore) and Navodaya Vidyalaya Samiti (Rs 6,025 crore), alongside targeted boosts in research and innovation under higher education.
Reactions and Concerns
Education Minister Dharmendra Pradhan described the proposals as a “Yuva Shakti-driven budget” aimed at youth empowerment, employment, and the next phase of development.
However, education advocates and analysts have expressed disappointment over the persistent shortfall from the 6% GDP target. “Despite clear recommendations by NEP-2020 and UNESCO that 6% of India’s GDP be allocated to school education, the sector continues to remain grossly underfunded,” noted one analysis from The Indian Express coverage. Implementation challenges, such as under-utilization in flagship schemes like PM-USHA in prior years, and modest growth rates relative to inflation and population needs, have fueled calls for more transformative investments.
As the government advances its ‘Viksit Bharat’ vision by 2047, the education allocation underscores incremental progress in access and skilling but highlights ongoing debates about whether it sufficiently meets the scale required for equitable, high-quality education nationwide. Live reactions continue to pour in from stakeholders, with further details expected as the Budget documents are analyzed in depth.