2026 Education Budget Insights: Why Funding Falls Short of NEP’s 6% Vision

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2026 Education Budget Insights: Why Funding Falls Short of NEP’s 6% Vision

In the 2026 Union Budget, Union Finance Minister Nirmala Sitharaman focused on several key initiatives for education. One highlight is the plan to establish a girls’ hostel in every district. This aims to create safer educational spaces for young women across the country.

There’s also a commitment to boost creative education through the Indian Institute of Creative Technologies in Mumbai. They plan to set up content labs in 15,000 secondary schools to enhance learning experiences.

The budget emphasizes mental health education, proposing the creation of three new national institutes for pharmaceutical research. Additionally, seven existing institutes will be upgraded. A network of 1,000 approved clinical trial sites will also be developed to advance healthcare research.

The finance minister announced plans to establish seven new Ayurveda institutes, along with a second facility for the National Institute of Mental Health and Neurosciences (NIMHANS). These efforts aim to strengthen health education and research.

The education budget received a 6.65% increase from the previous year, totaling approximately ₹1,28,650 crore. This growth follows a rise of 13% in 2024. While there were calls for education spending to reach 6% of GDP, recent allocations are aimed at improving infrastructure and access.

According to the 2025 Economic Survey, Indian higher education has expanded significantly in the last decade. However, it also points out challenges like faculty shortages and uneven research quality. Experts suggest that universities should focus more on practical, experience-based learning to better prepare students for the job market.

One pressing concern is the low enrollment of students beyond Class 8. The survey notes that only 17.1% of rural schools provide secondary education. This lack of access could impact the future workforce’s skill level and employability.

As we move forward, the focus on quality education and mental health is crucial for developing a competitive workforce. By investing in effective programs and facilities, the government aims to ensure that all students, especially in underserved areas, have the opportunity to succeed.

For more insights into the evolving landscape of education in India, you can explore the [Ministry of Education’s initiatives](https://education.gov.in/en). It’s essential to stay informed about how your education system is changing and adapting to today’s needs.



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