School Education Budget 2026: Allocation Rises to ₹83,562 Crore
The Union Budget for 2026-27 has brought a notable increase in funding for school education, with the Department of School Education and Literacy receiving ₹83,562 crore. This marks a rise of approximately 6.35 percent from the previous fiscal year’s budgeted amount of ₹78,572 crore. While the overall allocation has grown, the revised estimates for 2025-26 tell a different story, with actual spending projected at ₹70,567 crore—significantly lower than initially planned.
A Closer Look at the Numbers
The budget documents reveal a complex picture of education funding over the past few years. In 2024-25, the actual expenditure stood at ₹65,159 crore against a budget estimate of ₹73,008 crore, indicating substantial underspending. These reductions have been applied across various schemes and programs, reflecting a cautious approach to disbursement.
Interestingly, the share of school education in the central government’s total planned expenditure remains nearly unchanged at approximately 1.56 percent, compared to 1.55 percent in the current fiscal year. This suggests that while the absolute amount has increased, the relative priority has stayed consistent.
Major Boost for Atal Tinkering Labs
The standout beneficiary in this budget is the Atal Tinkering Labs (ATL) initiative, which promotes hands-on learning in science, technology, engineering, and mathematics (STEM) across schools. For the first time, ATL has been allocated a dedicated budget line, with the government proposing to spend ₹3,200 crore in the upcoming fiscal year—a substantial jump from the ₹500 crore earmarked in the current year.
This increased funding aligns with the government’s December announcement to establish 50,000 new ATLs in government schools nationwide over the next five years. The Finance Minister reiterated this commitment during the budget speech, underscoring the administration’s focus on fostering innovation and scientific temper among young learners.
Operated under the Atal Innovation Mission (AIM), these labs provide students with access to modern equipment including electronics components, robotics kits, microcontroller boards, sensors, 3D printers, and computers. Approximately 10,000 such labs are already operational across the country, and the expanded allocation aims to accelerate their reach to more schools, particularly in underserved areas.
AVGC Labs to Come Up in Schools
In another significant announcement, the Finance Minister revealed plans to establish content creator labs focused on Animation, Visual Effects, Gaming, and Comics (AVGC) in 15,000 secondary schools and colleges. The Mumbai-based Indian Institute of Creative Technology (IICT) will collaborate on this initiative, which seeks to prepare students for careers in the rapidly growing creative economy.
The minister highlighted that the AVGC industry is projected to require approximately 2 million professionals by 2030, describing this sector as the “orange economy.” This move signals a strategic push to align educational outcomes with emerging industry demands and create a skilled workforce for the digital content ecosystem.
Mixed Picture for Other Key Schemes
While ATL received a major boost, other schemes have experienced contrasting fortunes. The STARS program, which was supported by a World Bank loan and aimed at strengthening school quality and governance in select states, has seen its budget slashed by nearly 60 percent for both the current and upcoming fiscal years. The scheme’s five-year term concluded in the academic year 2024-25, which may explain the reduced allocation.
Similarly, the PM SHRI scheme, a flagship initiative for developing model schools, has maintained its total outlay at ₹7,500 crore. However, the actual spending for the current year has been reduced to ₹4,000 crore, reflecting a more conservative approach to fund utilization.
Focus on AI Integration and Teacher Training
The government is also advancing efforts to integrate artificial intelligence (AI) into school curricula and strengthen State Councils of Educational Research and Training (SCERTs) for improved teacher preparation. These initiatives fall under the purview of a high-level committee called “Education to Employment and Enterprise,” which has been tasked with recommending strategies to position the service sector as a cornerstone of a developed India.
Scheme-wise Allocation Breakdown
Here is a detailed comparison of allocations across major school education schemes over the last three fiscal years:
- Samagra Shiksha Abhiyan: ₹37,010 crore (2024-25), ₹41,250 crore (2025-26 BE), ₹38,000 crore (2025-26 RE), ₹42,100 crore (2026-27)
- Mid-Day Meal / PM Poshan: ₹12,467 crore (2024-25), ₹12,500 crore (2025-26 BE), ₹10,600 crore (2025-26 RE), ₹12,750 crore (2026-27)
- Kendriya Vidyalaya Sangathan: ₹9,303 crore (2024-25), ₹9,504 crore (2025-26 BE), ₹9,504 crore (2025-26 RE), ₹10,129 crore (2026-27)
- Navodaya Vidyalaya Samiti: ₹5,800 crore (2024-25), ₹5,305 crore (2025-26 BE), ₹5,750 crore (2025-26 RE), ₹6,025 crore (2026-27)
- PM SHRI / Model Schools: ₹6,050 crore (2024-25), ₹7,500 crore (2025-26 BE), ₹4,500 crore (2025-26 RE), ₹7,500 crore (2026-27)
- STARS: ₹1,250 crore (2024-25), ₹1,250 crore (2025-26 BE), ₹500 crore (2025-26 RE), ₹500 crore (2026-27)
- NCERT: ₹510 crore (2024-25), ₹594 crore (2025-26 BE), ₹623 crore (2025-26 RE), ₹682 crore (2026-27)
- National Merit Scholarship: ₹377 crore (2024-25), ₹374 crore (2025-26 BE), ₹374 crore (2025-26 RE), ₹381 crore (2026-27)
- New India Literacy Programme: ₹160 crore (2024-25), ₹160 crore (2025-26 BE), ₹130 crore (2025-26 RE), ₹160 crore (2026-27)
- Atal Tinkering Labs: Not separately allocated (2024-25), ₹500 crore (2025-26 BE), ₹500 crore (2025-26 RE), ₹3,200 crore (2026-27)
- PM Innovative Learning (Dhruv): ₹0.01 crore (2024-25), ₹55 crore (2025-26 BE), ₹5 crore (2025-26 RE), ₹50 crore (2026-27)
Overall Budget Trajectory
The total school education budget has followed a fluctuating path: ₹73,008 crore in 2024-25, ₹78,572 crore in the 2025-26 budget estimate, ₹70,567 crore in the revised estimate for the same year, and now ₹83,562 crore for 2026-27. The gap between budgeted and actual spending in recent years raises questions about implementation capacity and the pace of fund disbursement, even as the government signals its continued commitment to expanding educational infrastructure and innovation-driven learning.
The emphasis on STEM education through ATLs and the forward-looking AVGC initiative indicates a strategic shift toward future-ready skills. However, the significant cuts to schemes like STARS and the persistent gap between allocations and actual spending warrant attention from education stakeholders and policymakers alike.
