Education Budget 2026: Girls’ Hostels In Every District, Hospitality Institute, 5 University Townships Announced

Last Updated:February 01, 2026, 12:25 IST

Education Budget 2026: A NIMHANS-2 will be established, and the National Mental Health Centres in Ranchi and Tezpur will be upgraded to regional apex institutions, Sitharaman said.

News18

Education Budget 2026: A girls’ hostel will be established in every district across the country, Union Finance Minister Nirmala Sitharaman announced while presenting the Union Budget 2026-27.

She also added that the Centre plans to support five university townships near major industrial logistics centres. Each township will feature multiple universities, colleges, residential complexes, and research facilities.

Budget 2026 Live Updates

Education Budget 2026 Live Updates

Sitharaman further proposed the creation of a National Institute of Hospitality. This premier institution aims to align academic excellence with industry requirements and government policy. A NIMHANS-2 will also be established, and the National Mental Health Centres in Ranchi and Tezpur will be upgraded to regional apex institutions, Sitharaman stated, reported PTI.

The Budget includes plans to upgrade the WHO Global Traditional Medicine Centre in Jamnagar, Gujarat. Medical hubs are proposed in various states, with government support for establishing five hubs dedicated to medical tourism.

The government has announced a pilot initiative to train 10,000 tourist guides at 20 iconic sites through 12-week skill courses, in collaboration with the Indian Institutes of Management (IIMs).

Apart from these, Sitharaman has revealed plans to establish three new Ayurveda institutes and three new AIIMS in the Union Budget 2026-27. Additionally, a new design institute will be set up in the eastern region as per the budget allocations.

In 2025, the total allocation for the education sector in the 2025-26 budget is Rs 1,28,650.05 crore, highest-ever. The Department of School Education and Literacy was allocated Rs 78,572.10 crore, which made up 61% of the education budget. This funding was directed towards strengthening school education and supporting various initiatives aimed at improving the quality of schooling across the country. The Department of Higher Education received Rs 50,077.95 crore, accounting for 39% of the total education budget. This allocation aimed to facilitate the growth and expansion of higher education institutions in India.

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