Higher education allocations in the Union Budget 2026–27 rise in step with the broader expansion of the Ministry of Education’s spending envelope. This year, the Ministry has been allocated Rs 1,39,289.38 crore, up from Rs 1,28,650 crore in 2025–26, reflecting an increase of 8.27 per cent.Within this framework, the Department of Higher Education records a higher net allocation than in previous years, continuing a pattern of incremental growth seen since 2024–25. The latest budget figures show higher education funding moving upward both at the gross and net levels, with changes also visible in recoveries and scheme-wise distribution.Net higher education allocation shows steady climbThe net allocation for higher education has increased each year since 2024–25, with the Budget Estimates for 2026–27 marking the highest level so far.
Between actual spending in 2024–25 and the Budget Estimates for 2026–27, the net allocation has increased by over Rs 10,000 crore. The rise from the revised estimates of 2025–26 to the current Budget Estimates stands at more than Rs 4,300 crore, indicating a higher provision at the planning stage for the coming financial year.Gross expenditure rises alongside higher recoveriesGross expenditure figures show a sharper increase than net allocations, reflecting both higher spending provisions and a rise in recoveries.
Gross expenditure for higher education is estimated at Rs 78,496.22 crore in 2026–27, compared to Rs 70,278.93 crore at the revised estimate stage last year. Recoveries are also budgeted higher, increasing by nearly Rs 3,900 crore over the revised estimates of 2025–26, which in turn affects the net outlay.Revenue expenditure continues to account for the bulk of spending. In 2026–27, revenue expenditure is estimated at Rs 55,724.54 crore, while capital expenditure has been reduced to Rs 2.68 crore, compared to Rs 10.27 crore in both the Budget and Revised Estimates of 2025–26.Research and innovation allocations expand after mid-year contractionResearch and innovation funding under higher education shows marked variation across years, particularly between Budget Estimates and Revised Estimates.
While the Budget Estimates for 2025–26 had placed research and innovation funding at Rs 327 crore, this was revised downward during the year. The 2026–27 Budget restores the allocation and raises it further to Rs 418 crore, the highest level recorded so far under this head.Scheme-wise movement within research and innovationThe expansion in research funding is distributed unevenly across schemes, with some seeing stable allocations and others registering sharp increases.
The Scheme for Promotion of Academic and Research Collaboration (SPARC) records a gradual rise over time, while the MERITE–EAP scheme shows the most substantial increase, moving from a revised allocation of Rs 47.55 crore last year to Rs 300 crore in 2026–27.Teacher training and academic collaboration remain stableAllocations for teacher training and academic exchange programmes show continuity rather than sharp expansion.
The Malaviya Mission Teacher Training Programme continues at Rs 70 crore for the second consecutive year, while the Global Initiative for Academic Network sees a Rs 5 crore increase over last year’s allocation.Apprenticeships account for a major share of scheme fundingThe National Apprenticeship Training Scheme remains the single largest programme under higher education spending.
Funding for NATS has increased by nearly Rs 500 crore since 2024–25. International outreach schemes such as Study in India and the ASEAN Fellowship continue with modest allocations.Artificial intelligence funding records its highest allocationCentres of Excellence in Artificial Intelligence receive a larger provision in 2026–27 compared to both the Budget and Revised Estimates of the previous year.
The allocation rises to Rs 250 crore in 2026–27, exceeding the initial estimate of Rs 200 crore made last year.KVS and NVS allocations rise within the wider education budgetBeyond higher education, school education bodies continue to receive significant funding. Kendriya Vidyalaya Sangathan has been allocated Rs 10,129.21 crore in 2026–27, compared to Rs 9,503.84 crore in the previous year. Over the last five years, KVS funding has increased steadily from Rs 6,437.68 crore in 2020.Navodaya Vidyalaya Samiti has received Rs 6,025 crore this year, up from Rs 5,305.23 crore in 2025–26. Its allocation has risen consistently since 2020, when it stood at Rs 3,300 crore.Ministry-wide context and official responseThe higher education allocations form part of a Ministry of Education budget that has crossed Rs 1.39 lakh crore for the first time. Following the presentation of the Budget, Union Minister for Education Mr. Dharmendra Pradhan described the 2026–27 proposals as a Yuva Shakti–driven budget aimed at education and employment creation, and as a blueprint for the next phase of development.
