Sitharaman proposed the establishment of three new All India Institute of Medical Sciences (AIIMS) across the country. Photo by Yash Bakode
Union Budget 2026

Union Budget 2026: ₹1.39 Lakh Crore Allocated to Ministry of Education; Focus on Medical Education, AVGC, and Content Labs

The Finance Minister also shed light on industries focusing on animation, visual effects, gaming, and comics, among other growing sectors

Author : Vaishnavi Sivadasan
Edited by : Ritik Singh

Key Points:

The Union Budget 2026, presented by Nirmala Sitharaman, places strong emphasis on education as a core driver of national development.
The Ministry of Education has been allocated ₹1,39,285.95 crore, marking a significant increase from the previous financial year.
The Budget session has proposed setting up hostel facilities for girl students in every district.

Following the presentation of the Union Budget 2026 by Finance Minister Nirmala Sitharaman, several sectors have been allocated funds along with proposals outlining a plan of action for the year ahead.

The Ministry of Education has been allocated ₹1,39,285.95 crore as part of the Union Budget presented on February 1, 2026, marking a significant increase compared to the previous fiscal year.

The Budget session for the financial year primarily focused on the education sector, positioning it as a driving force and a central pillar of the much-publicised Viksit Bharat Mission 2047. In 2025, the education sector received a budget allocation of ₹1,28,650 crore, reflecting an increase of 8.27 per cent.

See Also: Budget 2026–27 Aims to Boost Growth and Jobs Across Sectors: FM Nirmala Sitharaman

To translate the vision of Viksit Bharat into reality, Finance Minister Sitharaman proposed the establishment of three new All India Institute of Medical Sciences (AIIMS) across the country. She also proposed the addition of 75,000 medical seats over the next five years.

Shifting focus to the declining talent pool in the design industry, the government has proposed the establishment of a new institute to cater to the sector’s needs.

In the Union Budget 2026, the Finance Minister announced plans to set up a new National Institute of Design in the eastern region of India through the challenge route to promote education and development. She further proposed the establishment of three new All India Institutes of Ayurveda and three National Institutes of Pharmaceutical Education and Research.

FM Sitharaman proposed a plan to boost education, along with development and skills, by vowing to establish five township universities near logistics centres. The townships, based on research and academics, highlight curriculam and techniques designed to impart hands-on experience to students and faculty members.

The Union Budget also places central focus on the daily grievances faced by female students who are constrained due to infrastructural setbacks. The Budget session has proposed setting up hostel facilities for girl students in every district.

See Also: Union Budget 2026: Defence Allocation Touches Record ₹7.84 Lakh Crore, Sees a 15.3% Jump, Focus on Modernisation and Preparedness

The Finance Minister also shed light on industries focusing on animation, visual effects, gaming, and comics, among other growing sectors. She stated in her speech that India’s growing industries are projected to require 2 million professionals by the year 2030.

“I propose to support the Indian Institute of Creative Technologies, Mumbai, in setting up AVGC content creator labs in 15,000 secondary schools across the country, and 500 in colleges,” Sitharaman said.

The Budget also proposes setting up four telescopic infrastructure facilities to upgrade astrophysics and astronomy. The series of announcements focused on providing tax relief to taxpayers and promoting development while boosting skills.

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