Key Points
- ₹1,39,289.48 crore allocated to education in Budget 2026, an 8.2% increase.
- 15,000 schools to get AVGC Content Creator Labs by 2026 for creative skills.
- Girls' hostels in every district to boost STEM education access by 2026.
Union Budget 2026-2027: In Budget 2026 Finance Minister placed the "Yuva Shakti" (Youth Power) at the centre of India's economic growth by raising a record-breaking allocation of ₹1,39,289.48 crore, a steady more than 8.2% increase from last year for the education sector, emerged as a key pillar for the "Viksit Bharat" vision.
Education Budget 2026 Highlights
The Budget 2026 moves focus on the "Orange Economy" with AVGC Content Creator Labs in 15,000 schools and ensuring safety and access which incudes:
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High-Powered ‘Education to Employment and Enterprise’ Standing Committee to focus on the Services Sector as a core driver of Viksit Bharat.
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Upgrade and establish new institutions for Allied Health Professionals (AHPs) in ten selected disciplines.
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Setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges.
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Setting up of a new National Institute of Design through the Challenge route in the eastern region of India.
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5 University Townships in the vicinity of major industrial and logistic corridors
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A girls’ hostel in Higher Education STEM institutions in every district.
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Setting up or upgrading of four Telescope Infrastructure facilities.
Union Finance Minister @nsitharaman proposed multiple steps in towards setting up new institutes, University townships, girls hostel and telescope infrastructure facilities in #investment in higher education sector#ViksitBharatBudget #Budget2026 pic.twitter.com/fESnKcKGii
— PIB India (@PIB_India) February 1, 2026
Sector-wise Allocation Table
The Ministry of Education has received a record allocation of ₹1,39,289.48 crore for the fiscal year 2026-27, representing a steady 8.2% increase over the previous year.
| Sector/Department | Allocation 2025-26 (₹ Cr) | Allocation 2026-27 (₹ Cr) | Growth (%) |
| Total Education Budget | 1,28,650.05 | 1,39,289.48 | +8.27% |
| School Education & Literacy | 78,572.00 | 83,562.26 | +6.35% |
| Higher Education | 50,078.00 | 55,727.22 | +11.28% |
| Indian Institutes of Technology (IITs) | 11,349.00 | 12,123.00 | +6.82% |
| Central Universities | 16,691.00 | 17,740.00 | +6.28% |
Also Read: Budget 2026 Highlights: Summary, Key Points and Download PDF
New Schemes in Budget 2026:
Girls’ Hostels in Every District: To address the "access gap" in Higher Education—specifically in STEM (Science, Technology, Engineering, and Math)—the government will establish one girls' hostel in every district. Funded through Viability Gap Funding (VGF), this initiative ensures female students from rural backgrounds can safely pursue research and laboratory-intensive courses.
15,000 AVGC Content Creator Labs: In a push for the "Orange Economy" (Creative Economy), the Indian Institute of Creative Technology (IICT), Mumbai, will lead the setup of Animation, Visual Effects, Gaming, and Comics (AVGC) labs in 15,000 secondary schools and 500 colleges. The goal is to prepare 2 million professionals for the global creative market by 2030.
Five New "University Townships":The Centre will support States in developing five integrated university townships located near industrial and logistics corridors. These townships will cluster universities and research centers to provide shared infrastructure and foster direct industry-academia collaboration.
Healthcare Education: 3 New NIPERs & Ayurveda Boost:Medical education expands with three new National Institutes of Pharmaceutical Education and Research (NIPERs), bringing the total to 10. The budget also targets training 1 lakh Allied Health Professionals and 1.5 lakh caregivers under NSQF-aligned pathways.
NIMHANS-2 & Upgradation: Recognizing the rising mental health burden which is also flagged in the Economic Survey 2026, the government announced:
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NIMHANS-2: A second campus of the National Institute of Mental Health and Neuro Sciences to be established in North India.
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Upgrades: The National Mental Health Institutes in Ranchi (CIP) and Tezpur (LGBRIMH) will be upgraded to Regional Apex Institutions, increasing capacity by 50%.
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Space Science & Telescope Infrastructure:To promote Astrophysics, four major facilities including the National Large Solar Telescope and COSMOS-2 Planetarium will be upgraded, positioning India as a global hub for immersive space education.
What is the Impact of Budget 2026 on Higher Education and Study Abroad Loans
The 2026 Budget brings significant relief for students pursuing global education, the Tax Collected at Source (TCS) reduction on remittances for education and medical purposes has been slashed from 5% to 2% and Loan Exemption on education expenses financed through formal loans from specified financial institutions remain fully exempt from TCS, continuing to ease the cash-flow burden on middle-class families, A ₹10 lakh cumulative threshold for LRS transactions remains, but the lower 2% rate significantly reduces the upfront tax impact for self-funded students.
What do the Stakeholders say about Budget 2026?
Industry Experts and Leading CEOs have lauded the focus on AI-ready workforces and the "Education to Employment" Standing Committee and Academicians welcomed hike in Higher Education sector while some stakeholders expressed concern over the lack of new IIT/IIM announcements, noting a shift toward strengthening existing capacity rather than elite expansion. Health Leaders highlighted the focus on allied health and mental health sends a signal that "healthcare is central to India's resilience."
Also Read: Budget 2026 Tax Slabs: Check Income Tax Rates and What is New Tax Act
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