Budget 2026: 10 Key Education Announcements You Should Know

The Union Budget 2026, presented by the Finance Minister Nirmala Sitharaman, with Rs. 1.39 lakh crore, which is the highest allocation till date. Thus, the budget deals with digital learning, skilling, and future education ideas for students.

The following are the 10 key education announcements in the Union Budget 2026.

1. Five University Townships Near Industrial Corridors

The Budget gives the establishment of five university townships near industrial and logistics corridors. Each township will house universities, colleges, research institutions, skill centres, and residential facilities, creating integrated education and skill hubs

2. One Girls’ Hostel in Every District

To improve access to education for women, the government announced the establishment of one girls’ hostel in every district. This initiative aims to support female students facing challenges related to education, mobility, and employment opportunities.

3. Centre of Excellence in Artificial Intelligence for Education

A Centre of Excellence in Artificial Intelligence for Education will be set up to promote innovation in AI-based learning tools, including adaptive learning platforms, virtual labs, and advanced classroom technologies for schools and higher education institutions.

4. Content Creation Labs in Schools and Colleges

The budget 2026's education announcements provide funding for creating content production laboratories across 15 thousand high schools and 500 colleges. The laboratories will concentrate on animation, visual effects, gaming, and comics. 

With these collaborative efforts, the federal government hopes to encourage digital creativity and nurture new competency skills in students.

5. New National Institute of Design 

The Union Budget 2026 proposes the establishment of a new National Institute of Design in eastern India. This move is aimed at strengthening design education and encouraging innovation and creativity in the region.

6. Reduction in TCS for Education Remittances

The Finance Minister proposed reducing Tax Collected at Source to 2 per cent for education-related remittances under the Liberalised Remittance Scheme. This decision will provide financial relief to students and families sending money abroad for education.

7. Merit-cum-Means Scholarship Allocation Cut by Over 99%

The allocation for the Merit-cum-Means Scholarship, which supports minority students pursuing professional and technical education, has been sharply reduced. Funding dropped from Rs 7.34 crore in 2025-26 to Rs 0.06 crore in 2026-27, marking a reduction of over 99 per cent.

8. Maulana Azad Fellowship Allocation Reduced by 16%

The Budget also announced a reduction in funding for the Maulana Azad National Fellowship, which supports minority students pursuing MPhil and PhD research. The allocation has been cut from Rs 42.84 crore in 2025-26 to Rs 36.14 crore in 2026-27, a reduction of 16 per cent.

9. Focus on Digital Infrastructure in Education

Strengthening digital infrastructure remains a priority in the Union Budget 2026. The government plans to expand broadband connectivity in schools and invest further in technology-enabled learning environments across the country.

10. Increased Funding for PM-VIKAS Scheme

The PM-Virasat Ka Samvardhan scheme has received a major funding boost in Budget 2026. An allocation of Rs 303.27 crore for 2026-27 has been made to support traditional arts, crafts, and skill development of artisans.