Union Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026-27 in Parliament today with the education sector anticipated to retain a priority position. Following substantial allocations in the 2025-26 Budget, policymakers, educators, and institutions are expecting further support in areas such as school infrastructure, higher education funding, digital learning, artificial intelligence integration, and skill development initiatives.
Education Sector Allocations in Union Budget 2025-26
In the Union Budget 2025-26, the education sector received a total allocation of INR 1,28,650 crore, marking a 6.22% increase over the 2024-25 Budget Estimates. This increment underlined the government’s commitment to strengthening education across levels and integrating modern learning models.
School Education and Foundational Learning Funding
Of the total allocation, INR 78,572 crore was earmarked for the Department of School Education and Literacy, registering an increase of nearly 7% year-on-year. Funds were directed toward implementing the National Education Policy (NEP) 2020, expanding Samagra Shiksha, and scaling up digital and foundational learning initiatives.
A significant announcement in 2025-26 was the plan to establish 50,000 Atal Tinkering Labs (ATL) in government schools over five years. These labs aim to promote innovation, STEM learning, and problem-solving skills among students at the school level. Budget emphasis also remained on reinforcing the 5+3+3+4 curricular structure, improving teacher training, and deploying technology and AI to enhance learning outcomes.
Higher Education, Technical Learning and Skill Development
The Department of Higher Education received INR 50,078 crore, reflecting a 5.16% increase over the previous year. Technical education institutions, including the Indian Institutes of Technology (IITs), saw enhanced support with INR 1,025 crore allocated for development and capacity building.
Funding for skill-linked learning also increased, with the National Apprenticeship Training Scheme (NATS) allocation raised to INR 1,178 crore, indicating continued focus on employability and industry-academia linkages.
AI, Innovation, and Indian Knowledge Systems
The 2025-26 Budget placed strong emphasis on AI-led learning, digital education platforms, and innovation-driven teaching models. A dedicated allocation of INR 50 crore for Indian Knowledge Systems was introduced to integrate traditional knowledge with modern education frameworks.
What to Watch in Union Budget 2026-27?
As the Union Budget 2026-27 is unveiled, stakeholders will closely monitor whether education sector allocations see further enhancement. Key areas of interest include:
- School infrastructure and foundational learning support
- Higher education funding increases
- Digital learning and artificial intelligence integration
- Stronger skill development and apprenticeship schemes
Education experts and institutional leaders are expecting budgetary measures that further reinforce quality, accessibility, and innovation across India’s education landscape. The final allocations and new policy initiatives announced today will set the direction for education reform and investment in the coming financial year.