Education Budget 2026: Finance Minister Nirmala Sitharaman presented the Union Budget 2026 on Sunday, announcing an education allocation of Rs. 1.39 lakh crore-the highest ever-covering initiatives such as establishing a girls' hostel in every district, creating five university townships, and setting up content creation labs. The 2026 Budget places strong emphasis on skilling and future-ready education.
Key Proposed Announcements in Union Budget 2026
1. Content Creation Labs
One of the major initiatives in Budget 2026 is the establishment of content creation labs in 15,000 schools and 500 colleges across India. These labs will focus on Animation, Visual Effects, Gaming, and Comics (AVGC) to promote digital creativity and emerging media skills.
2. Five University Townships
The Budget proposes setting up five university townships near major industrial and logistics corridors. Each township will include multiple universities, colleges, research institutions, skill centres, and residential complexes, designed to create integrated education hubs.
3. One Girls' Hostel Per District
The Finance Minister announced that one girls' hostel will be established in every district to support female students who face challenges related to education, mobility, and work opportunities.
4. Centre of Excellence in Artificial Intelligence
A Centre of Excellence in Artificial Intelligence for Education will be established to drive innovation in AI-based learning tools, adaptive learning platforms, virtual labs, and classroom technologies for both schools and higher education institutions.
5. National Institute of Design (NID)
The Budget proposes the establishment of a new National Institute of Design (NID) in eastern India to strengthen design education and foster innovation in the region.
6. TCS Reduction
The Finance Minister proposed reducing the Tax Collected at Source (TCS) to 2 per cent for education-related remittances under the Liberalised Remittance Scheme (LRS), providing significant relief to students and families sending money abroad.
7. Merit-cum-Means Scholarship Allocation Reduced by 99 per cent
The Merit-cum-Means Scholarship, which supports minority students pursuing professional and technical education, saw a drastic allocation cut-from Rs. 7.34 crore in 2025-26 to just Rs. 0.06 crore, a reduction of over 99 per cent.
8. Maulana Azad Fellowship Allocation Cut by 16 Per Cent
Funding for the Maulana Azad National Fellowship, a key scheme supporting minority scholars pursuing MPhil and PhD research, has been reduced from Rs. 42.84 crore in 2025-26 to Rs. 36.14 crore in 2026-27, reflecting a 16 per cent reduction.
9. Digital Infrastructure
Digital infrastructure continues to be a priority, with expanded broadband connectivity for schools and additional investments to support technology-enabled learning environments nationwide.
10. PM-Virasat Ka Samvardhan (PM VIKAS)
The PM-Virasat Ka Samvardhan (PM VIKAS) scheme has received a significant funding increase, with an allocation of Rs. 303.27 crore for 2026-27 to support traditional arts, crafts, and skilling of artisans.
