Union Budget 2026-27 Today: Education Likely to Stay in Focus After ₹1.28 Lakh Crore Allocation Last Year

Union Budget 2026-27 to be presented today by Finance Minister Nirmala Sitharaman. Here’s what last year’s INR 1.28 lakh crore education allocation signals for schools, higher education, AI learning and skill development.

Union Finance Minister Nirmala Sitharaman will present Union Budget 2026-27 in Parliament today, with education sector expected to remain priority, building on substantial allocations made in previous financial year.

In Union Budget 2025-26, Modi govt allocated INR 1,28,650 crore to Ministry of Education, marking a 6.22% increase over 2024-25 Budget Estimates. 

Strong Push for School Education

Of total allocation, INR 78,572 crore was earmarked for Department of School Education and Literacy, registering a nearly 7% rise. The funding was directed towards the implementation of NEP 2020, expansion of Samagra Shiksha, and scaling up digital and foundational learning initiatives.

A major announcement in 2025-26 Budget was plan to set up 50,000 Atal Tinkering Labs (ATL) in government schools over five years to promote innovation, problem solving and STEM learning at school level.

Budget also laid emphasis on the 5+3+3+4 curricular structure, teacher training reforms and the use of technology and artificial intelligence to improve learning outcomes.

Higher Education, IITs and Technical Learning

Department of Higher Education received ₹50,078 crore, a 5.16% increase over previous year. Technical education institutions, including IITs, saw enhanced support with ₹1,025 crore allocated for IIT related development and capacity building.

The government also increased funding for skill-linked learning, including a rise in allocation for the National Apprenticeship Training Scheme (NATS) to ₹1,178 crore, signalling a 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 ₹50 crore allocation for Indian Knowledge Systems was introduced to integrate traditional knowledge with modern education frameworks.

What to Watch in Budget 2026-27

As Finance Minister will presents Budget 2026-27 today, stakeholders will closely track whether allocations for education see another upward revision, particularly for school infrastructure, higher education funding, digital learning, AI integration and skill development.