Union Budget 2026: Govt Allocates 83,562 Cr for Schools, 55,727 Cr for Higher Ed; IIT Funding Rises, IISc, IIIT see Cuts

Nirmala Sitharaman has allocated INR 139,290 Cr for education sector, which was 128,650 Cr in 2025-26 Budget. IIM funding rises after year.

Union Finance Minister in her 9th Budget has allocated over 1,39,000 Crores for education sector

Union Finance Minister Nirmala Sitharaman on Saturday presented the Union Budget 2026-27 in Parliament, allocating ₹83,562.26 crore for school education and ₹55,727 crore for higher education, reaffirming the government’s focus on strengthening foundational learning, central universities and key higher education institutions. 

Nirmala Sitharaman has allocated INR 139,290 Cr for education sector, which was 128,650 Cr in 2025-26 Budget.

The allocation for the Department of School Education and Literacy has increased from ₹78,572 crore in 2025-26, while funding for the Department of Higher Education has gone up from ₹50,078 crore last year.

School Education Allocation Increased

The higher outlay for school education is aimed at supporting the implementation of the National Education Policy (NEP), strengthening Samagra Shiksha, improving digital infrastructure in government schools and enhancing foundational learning outcomes.

The Budget continues to emphasise STEM education, innovation and teacher training, including support for initiatives such as Atal Tinkering Labs (ATL) in government schools.

Higher Education: IITs Gain, IISc and IIITs See Reduction

In higher education, Budget 2026-27 reflects a mixed funding trend, with increased support for IITs, central universities and management education, alongside reduced allocations for IISc and IIITs.

• Indian Institutes of Technology (IITs) have received ₹12,123 crore, up from ₹11,349 crore in 2025-26.
• Central Universities have been allocated ₹17,740 crore, compared to ₹16,691 crore last year.
• Indian Institutes of Management (IIMs) have received ₹292 crore, up from ₹251 crore, marking an increase after several years.
• Allocation for the Indian Institute of Science (IISc) has been reduced to ₹845 crore, from ₹900 crore in the previous budget.
• Indian Institutes of Information Technology (IIITs) have seen their allocation cut to ₹441 crore, down from ₹522 crore last year.

The funding pattern indicates a calibrated approach, with higher allocations for large technical institutions and universities, while select research and IT-focused institutions face moderation in support.

Focus on Skills, Technology and Employability

The Union Budget 2026-27 reiterates the importance of linking education with employability, with continued emphasis on skill development, apprenticeships and the integration of emerging technologies, including AI-led learning, across schools and higher education institutions.

Education and the 2047 Vision

With increased spending on school education and higher allocations for IITs, central universities and IIMs, the Budget aligns education funding with the government’s broader objective of building a developed India by 2047.

Further scheme-wise and institution-wise details are expected in the detailed Budget documents.

Union Budget 2026-27: Education Allocation at a Glance

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