Education Budget 2026–27 Explained: Allocations, Schemes, and Impact

Indian Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 on February 1, 2026, in the Parliament. The present Union Budget has highlighted the education budget of India as one of the significant drivers. It is important for long-term growth and human capital development in our country. Special focus is on the National Education Policy 2020. It is running on the visionary lines of Viksit Bharat. The aim of the education budget India is to promote digital literacy and strengthen basic learning. It also ensures equitable access to schooling facilities. 

The Ministry of Education is allocated a significant share of the budget. It received INR 139279.48 crores. The aim is to achieve better educational standards. The budget has also raised concerns for the educational policy and the barriers to it. It may be due to economic pressures or inequitable access to services. With this blog, we shall have a look at the Education Budget 2026 and dive into more details of it. So, without wasting any more time, let’s get started.

A Look at 2026-27 Education Budget

As we know, each year the financial budget is presented in the Parliament by the Finance Minister. Each sector is allocated a specific budget estimate. School education is one of the primary concerns with regard to the development of a nation. For the Education Budget 2026–2027, the total budget allocation for the Ministry of Education stands at INR 139,289 crore. An approximate 8.7% rise has been seen from the previous education budget of India, 2025–2026, where INR 1,28,650 crore had been allocated. This significant rise shows a greater focus on improving school education and the broader reforms that are to be implemented. The increased budget is an attempt to modernise the education offered in schools. Learning also has to align with digital and technological facilities.

Breaking Down the Education Policy 2026

Regarding the Ministry of Education budget of India, there are various schemes implemented. These schemes help to achieve the overall educational motto. Let's discuss the major schemes under the Department of School Education and Literacy. These schemes have also been allocated budgets to upgrade infrastructure and teacher training.

INR 83,562 crore is allocated to the Department of School Education and Literacy. There is a significant 6.35% rise from the previous year’s budget. Let’s have a look at the major schemes under this department.

•  Samagra Shiksha Abhiyan- The scheme has received a budget of INR 42,100 crore. The focus has been directed towards primary and secondary education, along with teacher education. It also puts emphasis on quality, infrastructure improvements and making education more equitable. It also includes state-level initiatives, including girls’ hostels and district-level initiatives.
• District-level initiatives and girls’ hostels- The scheme focuses specifically on girls’ education. The government scheme has dedicated funds to establish one girls’ hostel per district. This scheme targets better educational services for girls in rural areas. The initiative also aims to support girls’ education in STEM fields. This is to drive more enrollment of girl children into the schools.
• PM Poshan Scheme- In the Education Budget of India, 2026–2027, funding of INR 12,750 crore has been allocated to this scheme. It aims to provide better nutritional support and care to learners. Over 11 crore children are targeted across schools in India. It aims to boost attendance and increase student enrolment. It would also improve health facilities for young learners.

Apart from this, there are various other provisions and welfare programmes to which budgets have been allocated. All these various schemes have focused on improving overall educational standards. They especially target child welfare, gender inclusivity, and students belonging to reserved categories.

Key Features of the Education Budget 2026–2027

As discussed previously, in comparison to previous years, a larger share of funds has been allocated to the education budget of India in the present year. This has been done not only to improve educational facilities in the country but also to achieve a better gross enrolment ratio (GER). Apart from this, let’s have a look at the various measures that are to be implemented to enhance school facilities and align them with the new objectives.

1. Special emphasis is placed on integrating digital and technological approaches into the education system. The Indian Institute of Creative Technologies (IICT) in Mumbai shall create audio-visual, gaming, comics, etc.
2. It shall also set up content-creator laboratories in 1,500 secondary schools. This shall foster greater creativity and AI-based learning. This shall overall improve digital literacy among young learners.
3. ‘Education to Employment and Enterprise’, a new standing committee, has been formed. The committee shall work to synchronise the curriculum across schools with industry demands. This is especially in relation to the services and manufacturing sectors. This is so that learners, after passing school, can be job-ready. This shall also increase employment avenues for learners.
4. Budget for the National Institute of Design – The National Institute of Design would be established in the eastern region of the country. It shall also receive funding for tribal-focused schemes such as Dharti Aba JanJati Gram Utkarsh Abhiyan or PMJANMAN. It aims to improve the school infrastructure, especially in remote areas.
5. Internet services across schools shall be provided.  Special focus in the budget is given to improve internet services across schools. It has been promised that BharatNet shall be expanded. Better and high-speed internet shall be made available to all government secondary schools. Particular attention is devoted to connecting primary health centres at schools.
6. Advanced teaching methods and teaching aids would be implemented nationwide. Distinct and structured teaching methods and teaching aids have been promised on the ground. Atal Tinkering Labs are to be expanded to more than 50,000 schools. Provisions for expanding Artificial Intelligence Centres of Excellence are to be made. A separate budget is allocated to the expansion of digital textbooks, especially in Indian languages.

Deconstructing Educational Budget: Who Gets How Much?

The education sector is a large entity. It comprises schools, universities to grants and whatnot. Under the Education Ministry, we have separate funding for school education and higher education. Here is a simple breakdown of the education budget 2026–2027 to understand investment in the future regarding education budget India.

• INR 83,562 crores is allocated as the net education budget India for the education sector under the Department of School Education and Literacy.
• The Department of Higher Education has been allocated INR 55,727 crore.
• INR 63,010 crore has been allocated to centrally sponsored schemes. These account for most of the department’s budget and funding for national programmes.
• INR 41,302 crore has been allocated to autonomous educational bodies.
• Around 74% of the department’s budget is to support higher education institutions in India.
• INR 41,100 crore has been allocated to Samagra Shiksha. This is to promote holistic education through a single scheme.
• The largest expenditure of INR 29,563 crore has been allocated to top universities and technological institutes in India.
• Central Universities have received INR 17,400 crore. The Indian Institutes of Technology have received INR 12,123 crore.
• As for schools in India, they have been allocated INR 15,415 crore. Under this, Kendriya Vidyalayas have received a budget of INR 10,129 crores. Navodaya Vidyalayas have received INR 6,025 crore.
• INR 250 crore to establish 3 centres of Excellence for AI research
• INR 2,200 crore to improve digital learning access under the ‘PM One Nation One Subscription’ scheme.
• Establishment of NIMHANS institutes in the northeast region to cope with mental stress among learners
• Central schemes and projects are allocated INR 2,920 crore to research activities. This includes funding for research, innovation, e-learning, and student financial aid.
• The Khelo India Mission, to support talent through training centres, coaches, etc., is also in line with the budget's aims.
• Setting up 3 new All India Institutes of Ayurveda for higher standards of the certification ecosystem.

What Should We Know About the Budget?

Summarising the latest education budget of 2026–27, significant improvements are seen. Funding, structured learning approaches and handling educational barriers are talked about. AI is being incorporated into the curriculum. We can also witness a targeted push for integrating digital tools into the education system. Tangible measures are outlined to bridge gaps for equitable access to education, or the gender gap. More focus is to be shifted to reduce school dropouts. The budget has also outlined the aim to promote good health among young learners. Laboratories shall be opened across the country, along with improved infrastructure.

All initiatives are to achieve the long-term goal of improving educational services. There lies a large urban–rural divide and inequitable access to educational facilities. Girl children or learners from remote backgrounds or reserved categories still face issues. Education is still not an easy path for all. Apart from this, the curriculum is to be improved as per industry demands. More focus and emphasis are placed on upskilling students and introducing digital literacy.

Concluding Notes

The Union has allocated a higher budget to the education department. It is using a balanced and cautious approach to improve the education system in the country. It aligns with the goal to achieve universal education by 2030. However, there still lies a gap between vision and application. 

However, with the current education budget in India and policies, the focus is on providing equitable access to education. Budget allocations are aimed at improving infrastructure at institutions. They also aim to reduce the gender gap and offer better digital facilities. We hope that the current and future budgets shall translate into actual outcomes. We are able to achieve our educational goals. We can have higher enrolment ratios, better infrastructure, improved learning standards, etc.

FAQ’s

Q.1 When was the financial budget for 2026-2027 announced? 

Indian Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 on February 1, 2026, in the Parliament.

Q.2 How much funding did the education sector get under the latest financial budget of 2026-27?

The total budget allocation for the Ministry of Education stands at INR 1,39,289 crore. There is a significant 8.7% rise from the previous year. INR 56.20 crores has been allocated as the net budget for the education sector under the Department of School Education and Literacy. The Department of Higher Education has been allocated INR 55,727 crore.

Q.3 What is the goal of the education budget as per the latest financial budget 2027-27?

The goal of the latest education budget is to achieve universal literacy by 2030. Special emphasis would be on improving educational standards and equitable access to learning. The Department of School Education and Higher Education have both allocated separate budgets. 

Q.4 Is digital education a part of a new approach under the education budget for the financial year 2026–27?

The present year's financial budget highlights digital education with special focus. To inculcate Digital and technological approaches into the learning system is mentioned. The curriculum is to be updated to match the industry standards. This would make learners job-ready.