Union Budget 2026-27: Education Minister Highlights UGC Boost, AI Push & Research Funding as Higher Education Allocation

Union Budget 2026-27 announcement signal higher education spending with increased support for UGC, artificial intelligence initiatives, digital learning infrastructure and skill development across universities and institutions.

Union Education Minister Dharmendra Pradhan has said that the Union Budget 2026-27 marks a decisive shift in India’s education policy, with higher allocations for universities, research bodies and emerging technology programmes aimed at aligning education with employment and economic growth.

In Budget 2026-27, Ministry of Education has been allocated ₹1.39 lakh crore for 2026-27, an increase of over 8% compared with previous year. Of this, ₹55,727 crore has been earmarked for higher education, reflecting a year-on-year rise of 11%.

UGC, IITs, IIMs see higher allocations

Among regulatory bodies, the University Grants Commission (UGC) has been allocated ₹3,709 crore, registering a double-digit increase over last year. This funding is expected to support fellowships, academic infrastructure and regulatory reforms in universities.

Allocations for centrally funded institutions have also gone up:

• IITs: ₹12,123 crore
• NITs: ₹6,260 crore
• Central Universities: ₹17,440 crore
• IIMs: ₹292 crore

Artificial Intelligence and research get targeted support

This budget has introduced dedicated funding for artificial intelligence and research-linked initiatives, underlining the government’s focus on future technologies.

A Centre of Excellence in Artificial Intelligence for education has received ₹100 crore, while funding has also been set aside for setting up three AI Centres of Excellence to support curriculum development, research and skill training.

In addition, allocations have been made for:

• PM Research Fellowship (PMRF): ₹600 crore
• PM Research Chair scheme: ₹200 crore
• World Class Institutions programme: ₹900 crore
• National Mission on Education through ICT: ₹650 crore

Education ministry officials said these schemes are intended to improve India’s research ecosystem and enhance global competitiveness of Indian universities.

Access to research material and digital learning

To improve access to global academic resources, government has allocated ₹2,200 crore for One Nation One Subscription initiative. Programme is expected to provide students and researchers across institutions with access to high-quality international journals and databases through a common platform.

School education allocation hits record high

Department of School Education and Literacy has received ₹83,562 crore, highest ever allocation for department. Funding for flagship schemes such as Samagra Shiksha, PM POSHAN and PM-SHRI Schools has been increased with a focus on foundational learning, infrastructure and innovation.

Union Budget also provides for expansion of Atal Tinkering Labs and content creation facilities in schools and colleges to promote innovation and creativity at school level.

Structural reforms: university townships and girls’ hostels

In his statement, Education minister highlighted proposals to establish five university townships aimed at integrating higher education, research and skill development within industrial and economic corridors. Another important proposal includes setting up girls’ hostels in every district, with objective of improving female participation in higher education, particularly in STEM disciplines.

Linking education with employment

A high-powered Education-to-Employment and Enterprise Standing Committee will be set up to recommend measures to better align curricula with labour market needs, especially in services sector and emerging technology domains.

According to minister, committee will examine the impact of technologies such as artificial intelligence on jobs and skills and suggest changes in school, teacher training and higher education programmes.

Read more:

• From ₹93,224 crore to ₹1.39 lakh crore: How India’s Education Budget Has Been Recast in Five Years
• Union Budget 2026: Govt Allocates 83,562 Cr for Schools, 55,727 Cr for Higher Ed; IIT Funding Rises, IISc, IIIT see Cuts
• Union Budget 2026-27: Govt to Set Up 5 University Townships, 3 New All India Institutes of Ayurveda