Union Budget 2026–27: Education and Skill Development

Education and Skilling: Budgetary Expansion and Structural Reforms

  • The Union Budget increased Education Ministry allocation to about ₹1.39 lakh crore.
  • This reflects a 14.21% rise over the revised estimates of the previous fiscal year.
  • The majority of the increase was directed towards the Department of School Education and Literacy.
  • Atal Tinkering Labs allocation rose sharply from ₹500 crore to ₹3,200 crore.
  • Samgra Shiksha scheme received an additional ₹4,100 crore over 2025–26 revised estimates.
  • The Kendriya Vidyalaya Sangathan allocation increased by approximately ₹600 crore.
  • PM Poshan scheme allocation rose by nearly ₹2,150 crore to strengthen school nutrition.

Infrastructure for Higher Education and Employment Linkages

  • The Budget announced five university townships near major industrial and logistics corridors.
  • These townships aim to align higher education with regional industrial demand.
  • A girls’ hostel in every district was proposed to improve STEM participation.
  • A high-powered Education to Employment and Enterprise Standing Committee was announced.
  • The committee will focus on the services sector as a driver of Viksit Bharat.
  • It will identify growth-oriented sub-sectors and emerging technology impacts on employment.
  • The panel will recommend AI integration in school curricula and teacher training reforms.
  • State Councils for Educational Research and Training will be upgraded for skill alignment.
  • Tax Collected at Source for overseas education was reduced from 5% to 2%.

Skilling Initiatives and Creative Economy Promotion

  • The Skill Development Ministry allocation increased to ₹9,885.8 crore, a 62% rise.
  • Most funding supports the PM Skilling and Employability Transformation Scheme.
  • The scheme received ₹6,081.8 crore for upgrading Industrial Training Institutes.
  • Content Creator Labs will be set up in 15,000 secondary schools.
  • Five hundred colleges will also host these labs to promote AVGC sector pathways.
  • Another National Institute of Design is proposed for eastern India.

Sports Manufacturing and Youth Development

  • First-time ₹500 crore allocation for sports goods manufacturing.
  • Youth Affairs and Sports Ministry budget increased to ₹4,479.88 crore.
  • Sports Authority of India allocation raised to ₹917.38 crore.
  • Khelo India Programme funded with ₹924.35 crore.
  • Budget for anti-doping institutions reduced, raising compliance concerns.
  • Government aims to position India as a global hub for affordable sports equipment.

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