Union Budget 2026-27: Higher Outlay for Northeast, Education, Health and Rural Development
Agartala Feb 1: Finance Minister Nirmala Sitharaman on Saturday announced a higher allocation for the Development of the Northeast in the Union Budget 2026-27, alongside increased spending on key social and growth-oriented sectors such as education, health, rural development and agriculture.
As per Budget documents, the allocation for the Development of the Northeast has been raised to Rs 6,812 crore for 2026-27, up from Rs 5,915 crore in the previous financial year, reflecting the government’s continued focus on accelerating growth in the region.
Education and Skilling
The education sector has been allotted Rs 1.39 lakh crore, marking an increase of nearly eight per cent over last year.
School Education and Literacy received Rs 83,562 crore, with the Samagra Shiksha Abhiyan allocation enhanced to Rs 42,100 crore.
To strengthen digital and creative skills among students, the Budget proposes setting up Animation, Visual Effects, Gaming and Comics (AVGC) content creator laboratories in 15,000 secondary schools. The PM POSHAN mid-day meal scheme has been allocated Rs 12,750 crore.
Higher education has received Rs 55,727 crore, with targeted support for premier institutions. Indian Institutes of Technology have been allocated Rs 12,123 crore, while Central Universities will receive Rs 17,740 crore.
To promote inclusivity, the government announced a new initiative to establish a girls’ hostel in every district to encourage female participation in STEM and higher education.
A new National Institute of Design will also be set up in the eastern region through the Challenge Route model.
In addition, a high-powered “Education to Employment” standing committee has been proposed to better align education with emerging job opportunities, particularly in areas such as artificial intelligence, data sciences and ethics.
Health and Biopharma
The health sector allocation has been increased to Rs 1,04,599 crore for 2026-27, compared to Rs 98,311 crore in the previous year.
The Budget signals a shift toward preventive, technology-enabled healthcare and domestic pharmaceutical manufacturing.
A major announcement was the launch of the Biopharma SHAKTI initiative, with an outlay of Rs 10,000 crore over five years, aimed at positioning India as a global biopharma hub.
The programme includes setting up three new National Institutes of Pharmaceutical Education and Research and upgrading seven existing institutions, along with the creation of more than 1,000 accredited clinical trial sites.
The Budget also targets the training of one lakh allied health professionals across ten disciplines over the next five years.
To tap India’s potential in healthcare services, states will be supported in developing five Medical Value Tourism hubs in collaboration with the private sector.
In the AYUSH segment, three new All India Institutes of Ayurveda were announced, while customs duty exemptions were extended to additional rare disease treatments and select cancer drugs.
Rural Development and Livelihoods
The allocation for rural development has been raised to Rs 2.73 lakh crore for 2026-27, up from Rs 2.65 lakh crore in the revised estimates of the previous year.
The Budget marks a strategic shift from wage-centric employment schemes to structured livelihood-oriented missions.
The newly introduced Viksit Bharat–Gramin (VB-GRAMG) programme emerges as the cornerstone of rural employment policy, with an allocation of Rs 95,692 crore.
In contrast, the outlay for MGNREGA has been reduced to Rs 30,000 crore, indicating a gradual transition toward livelihood creation and self-employment.
To boost women’s entrepreneurship, the government announced the setting up of Self-Help Entrepreneur (SHE) Marts, building on the Lakhpati Didi initiative.
A separate programme will focus on training 1.5 lakh multi-skilled caregivers to generate service-sector jobs in rural areas.
Agriculture and Allied Sectors
The agriculture and allied sectors have been allocated Rs 1,62,671 crore in the 2026-27 Budget, up from Rs 1,58,838 crore last year.
Agriculture has been positioned as a key growth driver, with targeted interventions aimed at improving productivity and farmer incomes.
Special programmes will focus on high-value crops such as coconut, cashew, cocoa and sandalwood, including a Coconut Promotion Scheme to replace unproductive trees.
Farmers will also benefit from Bharat Vistaar, a multilingual AI-based advisory platform designed to provide customised support.
In the fisheries sector, the integrated development of 500 reservoirs under the Amrit Sarovar initiative has been proposed to strengthen the blue economy and create additional livelihoods.
Overall, the Union Budget 2026-27 underscores a policy shift from subsidy-driven support to productivity-led growth, with emphasis on human capital development, technology adoption and sustainable rural and agricultural expansion.
(Source Budget at a glance)