States are allocating significant portions of their budgets to education in 2026-27, with school education receiving the largest share. This focus aims to strengthen learning frameworks and infrastructure nationwide. The Union Ministry of Education received a total of ₹1,39,289 crore for the fiscal year. This funding supports both basic and advanced educational needs across the country.
Union Education Budget Breakdown
The Department of School Education & Literacy received the largest portion of the Union education budget: ₹83,562 crore. This funding will support primary and secondary education. Key initiatives include improving learning structures, increasing digital access, and modernizing school infrastructure.
The Department of Higher Education was allocated ₹55,727 crore. This money will fund university infrastructure upgrades. It will also support institutional research and specialized skills training. The goal is to align education with industry demands.
State-wise Education Budget Allocations 2026-27
State governments continue to prioritize education, with annual spending often between 12% and 18% of their total budgets. Below is a summary of estimated state education budgets for 2026-27.
| State / Union Territory | Estimated Total Education Budget | School Education Focus & Key Allocations | Higher & Technical Education Focus |
| Uttar Pradesh | ₹76,000+ crore | Primary & Secondary Education, Samagra Shiksha Abhiyan, PM-SHRI upgrades, digital classrooms. | University infrastructure, medical education, state research grants. |
| Maharashtra | ₹52,000+ crore | Zilla Parishad school modernization, STEM kits, teacher training. | State university grants, technical education, skill development. |
| Bihar | ₹52,000+ crore (~15% of total state budget) | ECCE kits, free textbooks, teacher recruitment, school infrastructure. | College infrastructure, student credit cards, medical college upgrades. |
| Tamil Nadu | ₹44,000+ crore | Skill initiatives, smart classrooms, primary school infrastructure. | Government college hostels, technical university modernization. |
| Rajasthan | ₹40,000+ crore | English Medium Schools, lab repairs, sports kits. | Free higher education schemes, university research funds. |
| Karnataka | ₹38,000+ crore | School infrastructure, PM-SHRI conversions, midday meals, ICT labs. | Model colleges, engineering faculty training, technical education. |
| West Bengal | ₹37,000+ crore | Secondary school kits, ICT equipment, girls' education incentives. | University development grants, polytechnic expansions. |
| Madhya Pradesh | ₹35,000+ crore | CM Rise Schools, teacher training, primary school modernization. | Higher education scholarships, technical skill hubs. |
| Delhi (UT) | ₹16,000+ crore (~16% of total UT budget) | Excellence schools, teacher training, digital labs, maintenance. | University expansions, skill and entrepreneurship university. |
Spending Trends Highlight Priorities
Expenditure on school education constitutes the largest portion of state education budgets, typically 65% to 75%. This covers teacher salaries, co-financing of Samagra Shiksha Abhiyan, school modernization under the PM-SHRI scheme, digitization, and student welfare programs like uniforms, books, and midday meals.
Higher and technical education receive approximately 20% to 30% of state education budgets. Funds are directed towards grants-in-aid for state universities. They also support hostel construction for women, polytechnics, ITIs, and scholarships.
States are increasingly aligning spending with the National Education Policy (NEP). This includes allocations for Early Childhood Care and Education (ECCE). Funding for skill training and laboratories for STEM/AI content creation is also included.
