In the Union Budget for FY27, the central government gave the Education Ministry over ₹1.4 lakh crore, which is more than 14% more than the revised estimate of ₹1.21 lakh crore for FY26. However, the allocation remains below the National Education Policy’s recommendation of spending 6% of GDP on education. Higher Education received ₹55,727 crore, and the Department of School Education and Literacy received ₹83,562 crore. The PM-POSHAN (Mid-Day Meal) Scheme, which offers wholesome meals to elementary school pupils, was awarded ₹12,750 crore, a 20% increase over the updated FY26 projection. The PM Internship scheme, initially proposed in the Budget for 2024-25, was granted ₹4788.45 crore for the following financial year.
The PM SHRI initiative, which aims to modernize government schools, cost ₹7,500 crore, as opposed to ₹4,500 crore in FY26. Meanwhile, Samagra Shiksha Abhiyaan, the National Education Mission aimed at providing equitable access and learning outcomes, received an allocation of ₹42,100 crore. On Sunday, February 1, the Union Budget suggested establishing three new Ayurvedic institutes in addition to plans to modernize laboratories and AYUSH pharmacies to promote Ayurvedic product exports and education. She announced the establishment of a new National Institute of Design (NID) in the eastern region to promote design and creative education.
Additionally, she declared her support for the establishment of Animation, Visual Effects, Gaming and Comics (AVGC) content creator laboratories in 5,000 universities and 15,000 schools across the country by the Indian Institute of Creative Technologies. Additionally, three new All India Institutes of Ayurveda and three new National Institutes of Pharmaceutical Education and Research would be constructed. In order to improve access to higher education for women, Finance Minister Nirmala Sitharaman announced the construction of one girls’ hostel in each district and proposed the development of five university townships along industrial corridors.
The Finance Minister also recommended cutting the Tax Collected at Source (TCS) rate on international education and medical expenses under the Liberalised Remittance Scheme from 5% to 2%. Students and families sending money overseas for healthcare and education are anticipated to benefit from this action. In order to support scientific research and give students and researchers access to cutting-edge observational equipment, the government also intends to establish or modernize four Telescope Infrastructure sites. A total education budget of ₹1,39,289 crore was recommended by the government for FY27, an increase of 14.22% over the revised estimates of ₹1,21,949 crore for FY26.
Prof. Indranil Manna, Vice Chancellor, Birla Institute of Technology, Mesra, says, “Budget 2026’s announcement of a new National Institute of Design in eastern India, along with the establishment and upgradation of four telescope infrastructure facilities for astronomy and astrophysics, underlines the growing importance of multidisciplinary education.”
“Combined with sustained investment in AI, quantum technologies, and deep-tech research, these measures create pathways for students to engage in high-impact, future-oriented careers,” he added.
