Union Budget 2026: What It Means for Education, Skilling and AI

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026–27 on Sunday, February 1, Parliament is set to witness a rare moment in India’s post-Independence economic history.

The Budget presentation follows the tabling of the Economic Survey 2025–26 in the Lok Sabha on Thursday and the formal inauguration of the Budget Session by President Droupadi Murmu. 

In the Union Budget 2025, the government allocated Rs 1.28 lakh crore to the education sector, reflecting a 6.22 per cent increase over the previous year.

Despite the rise, the allocation remained below the long-standing target of 6 per cent of GDP recommended under the National Education Policy 2020.

Out of the total outlay, Rs 50,077.95 crore was earmarked for higher education, indicating continued emphasis on universities and advanced learning. The Budget also announced Rs 500 crore for setting up an Artificial Intelligence Centre of Excellence in education, signalling intent to align academic frameworks with emerging technologies.

Digital divide emerging as a new barrier for girls’ education

Devendra Kumar, founder of Ladli Foundation, has flagged the digital divide as a growing but overlooked obstacle preventing girls from transitioning to higher education.

“As India prepares for Budget 2026, the moment demands deeper reflection on an emerging yet largely overlooked barrier to girls’ education: the digital divide,” Kumar said.

He highlighted that while enrolment and retention have improved, many girls from government schools and economically weaker sections struggle to clear computer-based entrance exams such as CUET, JEE, and NEET.

“These exams assume a level of digital familiarity that many girls from government schools simply do not have. Expecting them to compete without basic exposure to computers is neither fair nor equitable,” he added.

Kumar warned that digital exclusion is becoming a new form of educational discrimination, disproportionately affecting marginalised girls from rural and semi-urban regions and threatening long-term women-led development goals.

Higher education investment and India’s global talent ambition

Vishal Anand, Founder and Pro Chancellor of Shoolini University, emphasised the need for sustained investment and global alignment in higher education to meet national aspirations.

“The vision of NEP 2020 and Viksit Bharat rests on scale, quality, and global relevance in higher education,” Anand said.

He noted that achieving a 50 per cent gross enrolment ratio would require long-term investment of nearly USD 30 billion, backed by affordable financing mechanisms and responsible access to capital markets for education institutions.

Anand also underscored India’s potential as a global skill provider.

“By enabling globally accredited skill programmes and internationally aligned certifications, the Budget can help position India as a skill exporter to the world while creating high-value employment pathways for our youth,” he said.

Highlighting healthcare education, he added that strengthening medical and paramedical institutions in Tier-2 and Tier-3 regions through targeted grants and infrastructure support would be crucial for building a resilient healthcare workforce.

Budget 2026 under the spotlight

Nirmala Sitharaman is set to present the Union Budget for the ninth consecutive time, making her the first woman finance minister in India to achieve this milestone.

Appointed in 2019 after Narendra Modi assumed office for a second term, Sitharaman retained the finance portfolio following the 2024 general elections. Her run includes eight full budgets and an interim budget presented in February 2024, underlining her continuity at the helm of economic policymaking.

Budget Session 2026 timeline

The Budget Session of Parliament for 2026 will continue until April 2 and will be conducted in two phases.

The first phase runs from January 28 to February 13, while the second phase is scheduled from March 9 to April 2. The Economic Survey, tabled on January 29, provides a macroeconomic assessment and policy direction ahead of the budget announcement.

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