Education Budget 2026 LIVE: Rs 1.39 lakh crore for higher ed, schools; new NID, NIPERs, NIMHANS; skilling push

Budget 2026 Education: For the fiscal year 2026-27, the education sector has received an allocation of Rs 1,39,289.48 lakh crore. Finance minister Nirmala Sitharaman has announced three new National Institutes of Pharmaceutical Education and Research (NIPER), one new National Institute of Design (NID) and support for five new university townships in her budget speech 2026.

Out of the total allocation for the Education sector, Rs 83,562.26 crore has been allocated to school education, and Rs 55,727.22 crore for higher education.

While these were among the budget highlights, she also announced a host of new skilling programmes across industry sectors – including shipping, tourism and more – as well as a major boost to accounting professions managed by the ICAI, ICMAI and others and the allied and healthcare professions.

The FM presented her 9th budget speech today for the first time in Kartavya Bhavan.

Education Budget 2026-27: Highlights

Notably, 3 new All Institutes of Ayurveda (AIIAs) will be established. The minister has a set goal of including one lakh allied and healthcare professionals over the next five years.

The emphasis on allied health professionals (AHPs) comes after the Centre’s ongoing efforts to standardise training for allied health science programmes through the National Commission for Allied and Healthcare Professionals (NCAHP).

The finance minister stated that the skilling initiatives will span 10 disciplines, including anaesthesia, optometry, radiology, operating theatre technology, applied psychology, and behavioural health.

Another National Institute of Mental Health and Neuro Sciences (NIMHANS) will be established in northern India. Currently, one NIMHANS is in Bengaluru. Additionally, through Viability Gap Funding or capital support, one girls' hostel in every district for STEM students will be established.

Last year, under the Education Budget 2026, the sector received an allocation of Rs 1,28,650.05 crore, marking a 6.65% rise. The education sector continues to urge the government to increase spending to 6% of GDP in line with the National Education Policy (NEP 2020) targets.

Spending on higher education rose by 7.74% to Rs 50,077.95 crore in 2025-26, while the school education and literacy department was allotted Rs 78,572 crore, nearly Rs 11,000 crore higher than the revised estimates.