Budget 2026-27: On the one hand, there is a demand to increase expenditure on the health infrastructure sector and research and development, while on the other hand, there is a demand for special focus on better education and higher education.

Budget 2026: From health sector to education… what are the expectations from Nirmala Sitharaman

Union Budget 2026-27: High expectations are being expressed in areas ranging from education to health, with the Union Budget 2026 to be presented by Union Finance Minister Nirmala Sitharaman on February 1. While there are calls for increased spending on health infrastructure, research and development, and public health services, there is also a strong expectation of a focus on quality and skill-based reforms in education and higher education.

In the last financial year 2025-26, the budget allocation for health services was increased by 9.8 percent to Rs 99,858.56 crore, whereas in the financial year 2024-25, this amount was Rs 90,958.63 crore.

Key demands of the health sector

Dr. P.R. Sodani, President of IIHMR University, says that significant investment is needed to strengthen the health sector. This should include special attention to human resources, digital transformation, and strengthening infrastructure. A significant increase in government spending on public health is essential to reduce out-of-pocket health expenditures for the general public.

He said that increased public health spending should be effectively utilized to strengthen the capacity and skills of human resources to attract qualified talent to the sector. Promoting training and capacity building will improve health services management, as well as accelerate research and development and digital health transformation.

Expectations from the education sector

Regarding the education sector, an allocation of ₹1,28,650.05 crore was made for it in the financial year 2025-26, which was approximately 6.5 percent more than the previous year. This includes ₹78,572 crore for school education and ₹50,078 crore for higher education. Additionally, ₹500 crore was allocated for artificial intelligence (AI) research.

Pankaj Priya, deputy director and dean (academics) at Birla Institute of Management Technology (BIMTECH), Greater Noida, said that addressing the cognitive skills gap in the education sector alone is not enough. While the central government is pushing the skilling agenda at the national level, the responsibility cannot be left solely to the state governments.

He stated that there is an urgent need to align higher education curriculum with emerging technologies such as Industry 4.0, generative AI, and machine learning. The National Education Policy 2020 also acknowledges this shift and aims to connect at least 50 percent of students in school and higher education with skills-based education by 2025.

Emphasis on quality in education is essential.

According to Pankaj Priya, the Economic Survey 2024-25 states that the number of colleges has increased by 13.8 percent over the past eight years, and the gross enrollment ratio (GER) has risen from 23.7 percent to 28.4 percent. However, the next phase of reforms should not be limited to expanding access, but should focus on quality education, deeper research capacity, and stronger employment-oriented outcomes.

He said that Budget 2026 is a significant opportunity to transform India's education system into a globally competitive, innovation-driven, and future-ready talent base. Government initiatives focused on cutting-edge technologies can be maximized by fostering innovation and entrepreneurial thinking.