Union Budget 2026 Allocates ₹1.39 Lakh Crore to Education With Focus on AI, Skilling, Inclusion and Research

The Union Budget 2026–27 has placed strong emphasis on education, with the government unveiling a series of measures aimed at modernising learning, improving access, and aligning education with future skills. Presented by Finance Minister Nirmala Sitharaman in Parliament, the budget outlines key announcements spanning artificial intelligence, digital infrastructure, scholarships, and skilling initiatives, signalling a renewed push to strengthen India’s education ecosystem.

A major highlight of Budget 2026 is the increased allocation for the education sector, which has risen to about ₹1.39 lakh crore, marking one of the highest levels of funding so far. The enhanced outlay is intended to support both school and higher education, with targeted investments in infrastructure, teacher capacity, and institutional expansion. Special focus has been placed on central school systems such as Kendriya Vidyalayas and Jawahar Navodaya Vidyalayas to improve quality and reach.

Technology-driven learning has emerged as a core theme, with the budget announcing deeper integration of artificial intelligence and digital tools across schools and colleges. The government has proposed setting up AI-enabled learning platforms and specialised labs, including facilities focused on animation, visual effects, gaming, and comics, to prepare students for emerging industries and creative sectors.

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In higher education, the budget outlines plans for strengthening research and innovation through better funding, new university clusters, and stronger industry–academia linkages. Measures to expand hostels, particularly for women students, aim to improve access and inclusion, while enhanced support for research institutions is expected to boost India’s global academic standing.

Financial support for students has also been addressed through scholarships, education loans, and tax-related relief. Changes such as reduced tax collection on overseas education remittances are expected to ease the burden on families, while expanded scholarship coverage seeks to support meritorious and disadvantaged students.

Overall, Budget 2026’s education announcements reflect a strategic focus on future-ready skills, equitable access, and global competitiveness. By combining higher funding with reforms in technology, infrastructure, and student support, the government has signalled its intent to make education a key driver of India’s long-term economic and social growth.

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