University townships, girls’ hostels: Budget channels Rs 1.39 lakh crore into education

NEW DELHI: From university townships along industrial corridors to a girls’ hostel in every district, the Union Budget 2026–27 puts bricks-and-mortar higher education and school infrastructure at the centre of a Rs 1.39 lakh crore education push, signalling a shift towards capacity building and access — especially for young women.

Terming it as a youth-driven roadmap, finance minister Nirmala Sitharaman said: “In the Viksit Bharat Young Leaders Dialogue 2026, several innovative ideas were shared with our Prime Minister, which have inspired many of the proposals, making this a unique Yuva Shakti-driven Budget.”

The ministry of education’s total allocation rises 8.27% to Rs 1,39,290 crore in 2026–27. Of this, school education and literacy receives Rs 83,561 crore — up 6.35% — with funds earmarked for National Education Policy implementation and strengthening Samagra Shiksha. Higher education gets Rs 55,724 crore, an 11.28% increase, aimed at expanding campus infrastructure and research capacity.

A key higher-education initiative is the creation of five “university townships” near major industrial and logistics corridors. These planned academic zones will bring together multiple universities, colleges, research institutions, skill centres and residential complexes, designed to cluster teaching and research closer to emerging economic hubs.

Calling it a move from enrolment to outcomes, Manojranjan Nayak, founder-president of Siksha 'O' Anusandhan, said the budget focused on long-term capacity. “This budget recognises that India’s education challenge is no longer just about enrolment — it is about building strong campuses, inclusive access and future-ready learning spaces. University townships, girls’ hostels and digital classrooms signal a move from short-term fixes to long-term capacity.”

Gender access is a clear theme. To address the challenges faced by women students in science and engineering programmes — often marked by long lab hours and limited accommodation — the government will provide capital support to establish at least one girls’ hostel in every district with higher-education STEM institutions. Welcoming this, Ramakrishnan Raman, vice-chancellor of Symbiosis International (Deemed) University, said the budget reflected a holistic vision. “The union budget provides a balanced approach — combining cutting-edge scientific advancement with cultural and intellectual traditions — aligned with the aspirations of Viksit Bharat. Such imaginative investments will enhance institutional capacities and empower future generations.”

The budget also expands digital learning infrastructure in schools and colleges, including AVGC content creator labs in 15,000 secondary schools and 500 colleges. Ketan Deshpande, chairman of FUEL Group of Institutions, said this would open new creative and digital career pathways for youth, adding that closer integration of education and employment could help bridge long-standing gaps between learning and livelihoods.

On institutional funding, allocations for IITs rise to Rs 12,123 crore and IIMs to Rs 292 crore, while some other premier institutes, including IISc and IIITs, see tighter budgets this year.

For families supporting children abroad, the budget offers modest relief: tax collected at source on overseas education remittances under the Liberalised Remittance Scheme has been reduced from 5% to 2%. A one-time six-month window has also been opened for small taxpayers — including students and young professionals — to disclose foreign assets without penalty.

Taken together, the measures underline a budget that leans heavily on classrooms, campuses and women’s access to higher education — seeking to translate India’s demographic advantage into stronger educational foundations.