The Union Budget 2026–27 announced by Finance Minister Nirmala Sitharaman has set aside a historic Rs 83,562 crore for the Department of School Education and Literacy, underscoring the government’s focus on foundational learning and school transformation initiatives. This represents a 6.35 per cent increase over the previous year’s allocation and builds on ongoing efforts to improve access, infrastructure and learning outcomes in schools nationwide.
Record Outlay for School Education and Literacy
The Rs 83,562 crore budget for school education in 2026–27 is the highest ever for the department, and includes funding across key flagship programmes and autonomous bodies. The increase reflects the government’s commitment to enhancing school education as part of its broader vision for inclusive and quality learning under the National Education Policy (NEP) framework Among the notable beneficiaries are central school systems and schemes that support students, teachers and infrastructure across India.
Major Scheme Allocations and Increases
The 2026–27 Budget provides higher allocations for several flagship education programmes:
- Samagra Shiksha Abhiyan — Budgetary support raised to Rs 42,100 crore, empowering foundational to secondary education with additional grants compared with the previous year.
- PM POSHAN (Mid-Day Meal Scheme) — Allocation increased to Rs 12,750 crore to sustain nutrition support and improve attendance
- Kendriya Vidyalaya Sangathan (KVS) — Central school system sees Rs 10,129 crore for operations, infrastructure and academic expenses.
- Navodaya Vidyalaya Samiti (NVS) — Funding raised to Rs 6,025 crore, strengthening rural and residential schooling.
- NCERT (National Council of Educational Research and Training) — Funding increased to Rs 682 crore to support curriculum development and teacher resources
- PM SHRI (Prime Minister School for Rising India) — Maintains Rs 7,500 crore, supporting model schools under NEP implementation.
- National Means-cum-Merit Scholarship (NMMS) — Slight increase to Rs 381 crore to support meritorious students from disadvantaged backgrounds.
Innovation and Skill Focus: Atal Tinkering Labs and AVGC
A standout feature of the 2026–27 education budget is the major push for innovation in schools. The Atal Tinkering Labs (ATL) scheme, designed to promote hands-on STEM learning, has been introduced as a new budget head with an outlay of Rs 3,200 crore, aiming to establish 50,000 new ATL facilities across government schools over the next five years. ATL provides students with equipment and kits for science, electronics, robotics and creativity. In addition, the government plans to introduce Animation, Visual Effects, Gaming and Comics (AVGC) Content Creator Labs in about 15,000 secondary schools and colleges, aiming to tap into the growing demand for digital and creative industry skills.
Broader Focus and Policy Direction
Budget documents also indicate increased emphasis on linking school education with employment and enterprise, including through a proposed standing committee on Education to Employment and Enterprise. This aligns school learning with future job markets and emerging technologies such as artificial intelligence and digital learning tools Despite positive overall growth, some programmes like the STARS initiative have seen static or reduced allocations, reflecting shifting priorities within school education funding.