Education Budget jumps to ₹1.39 trillion, school learning gets record push

School education and learning receive their highest-ever allocation as Budget 2026-27 raises overall education spending by over 8 per cent, with higher outlays for KVs, IITs and new initiatives

With an eye on improving India’s learning ecosystem, the Union education ministry received ₹1.39 trillion from the Union Budget 2026-27, an 8.27 per cent rise from the budget estimates (BE) of last year.

 

How has school education funding changed in Budget 2026-27?

 

This marks a 14.2 per cent increase from the ministry’s revised estimates (RE) of ₹1.21 trillion for FY26. The rise this year was primarily driven by a 6 per cent increase in the outlay for the Department of School Education and Literacy (DoSEL) on a BE basis. DoSEL’s budgetary allocation stood at ₹83,562 crore, the highest ever for the department, Union education minister Dharmendra Pradhan said in a statement on Sunday. On an RE basis, the allocation grew by 18.4 per cent from ₹70,567 crore last year.

 

 

The increase was supported by the highest-ever budgetary allocation for autonomous bodies such as the Kendriya Vidyalaya Sangathan (KVS) and Navodaya Vidyalaya Samiti (NVS) at ₹10,129 crore and ₹6,025 crore, respectively. Similarly, allocations for flagship schemes such as Samagra Shiksha and PM-Poshan also rose compared to the BE of FY26.

 

What does the Budget provide for higher education?

 

The Department of Higher Education (DHE) also saw an 11 per cent rise compared to last year’s BE figures. On an RE basis, the DHE allocation increased by 8.4 per cent from ₹51,381 crore in FY26.

 

This includes an 11.1 per cent rise in allocation for the University Grants Commission (UGC) to ₹3,709 crore on a BE basis. Indian Institutes of Technology (IITs) also recorded a 6.8 per cent increase in allocation to ₹12,123 crore. Major schemes such as PM-One Nation One Subscription (ONOS) and PM Research Chair (PMRC) received significant outlays of ₹2,200 crore and ₹200 crore, respectively.

 

What new initiatives were announced for education and skills?

 

The department has also received an allocation of ₹100 crore for the establishment of a Centre of Excellence (CoE) in artificial intelligence for education. In addition, the government has proposed setting up five university townships along major industrial and logistics corridors, aimed at integrating universities, research centres, residential facilities and industry partnerships.

 

The Budget also proposes setting up a new National Institute of Design (NID) in eastern India to strengthen design education and innovation in the region.

 

Does the allocation meet long-term education goals?

 

While the increased allocations signal continued policy attention to the sector, experts note that the rise remains modest when adjusted for inflation and measured against long-standing funding commitments. Overall spending still falls short of the National Education Policy (NEP) target of 6 per cent of the country’s gross domestic product (GDP), a gap that remains unaddressed this year as well.

 

Calling it a Yuva Shakti-driven Budget, Pradhan said it gives a boost to education and employment creation and presents a blueprint for the next phase of development.