Higher education funding has increased by 11% in the Union Budget 2026-27, totaling Rs 55,727.22 crore. Finance Minister Nirmala Sitharaman presented the budget on Sunday.
Key Allocations and Changes
The Pradhan Mantri Uchhatar Shiksha Yojana (PM-USHA) received an allocation of Rs 1,850 crore. This follows a significant cut in the previous year, where its revised estimate dropped to Rs 800 crore from Rs 1,815 crore.
The Prime Minister Research Fellowship (PMRF) has been allocated Rs 600 crore for the upcoming fiscal year. Its budget was previously revised to Rs 290 crore, less than half of its Rs 600 crore outlay in 2025-2026.
New institutions announced include one National Institute of Design, three National Institutes of Pharmaceutical Education and Research (NIPER), and upgrades to seven existing NIPERs. Five university townships will also be established near industrial corridors.
Rs 200 crore is designated for establishing Prime Minister Research Chairs. One girls’ hostel for STEM students will be built in each district through viability gap funding. No specific allocation was made for the PM Girls hostel scheme in the upcoming year, though Rs 10 crore was allocated in the revised 2025-26 budget.
The World Class Institution scheme’s allocation rose to Rs 900 crore, an increase from Rs 475.12 crore in 2025-26. The revised budget for 2025-26 was also Rs 900 crore.
Regulatory Bodies See Increases
Allocations for higher education regulators have increased. The University Grants Commission (UGC) will receive Rs 3,709 crore, up from Rs 3,470 crore in the revised 2025-26 outlay. The All India Council for Technical Education (AICTE) allocation increased to Rs 230 crore from Rs 200 crore.
Institutes like the Indian Institute of Information Technology (IIIT), Indian Institute of Science Education and Research (IISER), and the Indian Institute of Science (IISC) saw budget reductions.
| Institute | 2025-26 (Revised) | 2026-27 (Budget) |
|---|---|---|
| UGC | 3,335.97 Cr | 3,709 Cr |
| IIT | 11,349.50 Cr | 12,123 Cr |
| IIM | 251.89 Cr | 292 Cr |
| IISER | 1,353.33 Cr | 1,319 Cr |
| IISC | 900 Cr | 845 Cr |
| NIT/IIEST | 5,687.47 Cr | 6,260 Cr |
| Central Universities | 16,691.31 Cr | 17,440 Cr |
Indian Institutes of Management (IIM) allocations include funds for HEFA loan principal and interest repayment. The Indira Gandhi National Open University’s allocation increased to Rs 160 crore. The School of Planning and Architecture (SPA) saw a 0.6% increase to Rs 169.06 crore.
Scheme-Specific Allocations
The Pradhan Mantri Uchchatar Shiksha Abhiyan (PM-USHA) has an allocation of Rs 1,850 crore. In the financial year 2024-25, the scheme’s utilization was Rs 357.83 crore against a budget of Rs 1,814.94 crore.
Student financial aid schemes, including PM Uchchatar Shiksha Protsahan (PM-USP) and PM Research Fellowship (PMRF), maintain a Rs 2,160 crore allocation. PM-USP receives Rs 1,560 crore, and PMRF receives Rs 600 crore.
The Multidisciplinary Education and Research Improvement in Technical Education (MERITE) scheme received Rs 300 crore. The Scheme for Transformational and Advanced Research in Sciences (STARS) got Rs 40 crore. There is no allocation for the IMPRINT scheme for the second consecutive year. The Scheme for Promotion of Academic and Research Collaboration (SPARC) received Rs 55 crore.
The National Apprenticeship Training Scheme (NATS) saw an increase to Rs 1,250 crore. This marks the only scheme with identical allocation and revised figures.
Cuts in Specific Institutions
The Central Institute of Indian Languages, Mysore, has seen its allocation reduced to Rs 39.26 crore from Rs 43.50 crore in 2025-26. The Indian Knowledge System (IKS) allocation dropped to Rs 35 crore from Rs 50 crore.