Presenting the Budget for 2020-21, Sitharaman said Rs 99,300 crore has been allocated for the education sector and Rs 3,000 crore for skill development for the next fiscal.
Steps will be be taken to attract external commercial borrowing and FDI in the education sector, the finance minister said.
She further said the government plans to start a programme for urban local bodies to provide opportunities for internship to young engineers.
She also said National Police University and National Forensic University are being proposed, while planning to allow degree level full-fledged online education programme by institutions ranked in top 100.
The government has also proposed to attach medical colleges with district hospitals on PPP model to deal with shortage of doctors, she added.
Special bridge courses will be designed for teachers, nurses, para medical staff, caregivers, she said.
Allocation for Swachh Bharat for 2020-21 stands at Rs 12,300 crore, and the government is proposing Rs 3.6 lakh crore towards piped water supply to households.