Key Highlights of India’s Current Budget 2026-27

India’s Budget 2026-27 Overview

The Indian government, in the current Budget 2026-27, has announced several schemes for education, health, tourism, and women empowerment. The total budget expenditure is ₹53.5 lakh crore, up from last year’s revised estimate of ₹49.6 lakh crore.

Finance Minister Nirmala Sitharaman has termed it a “youth-powered budget”, but questions remain whether the budget addresses issues like unemployment and inflation. While large allocations have been announced in the name of development, several sectors have seen cuts compared to last year, indicating weak implementation of schemes.

Education Sector

The total allocation for education is ₹1,39,289 crore, up 8.27% from last year’s ₹1,28,650 crore. Out of this, school education has been allocated ₹83,561 crore, while higher education gets ₹55,724 crore.

Key announcements include:

  • One girls’ hostel per district

  • Five university townships

  • 15,000 schools to get AVGC labs and AI missions

However, when inflation is considered, the real benefit is limited. Last year, education grants were cut by ₹6,701 crore, showing that the government may not be prioritizing education fully.

Challenges:

  • Insufficient focus on quality education and teacher training

  • Budget heavily favors infrastructure, but the actual student benefits remain uncertain

Health Sector

Health expenditure has been allocated ₹1,04,599 crore, up around 8.9% from last year’s ₹95,958 crore.

Key initiatives include:

  • ₹10,000 crore for biopharma strength

  • 5 regional medical hubs

  • 3 Ayurveda institutes

  • Training for 1.5 lakh caregivers

The National Health Mission (NHM) sees a 5.81% increase, but primary health care and preventive care are still underfunded. Last year, ₹3,686 crore remained unutilized in the health sector.

Observations:

  • Small reduction in family welfare expenditure may affect women and child health

  • Duty exemption on cancer drugs is a good step, but ordinary citizens’ healthcare sees little change

  • Benefits seem to favor big companies more than public healthcare

Tourism Sector

Budget allocations for tourism have increased significantly from ₹1,310 crore last year to ₹2,438 crore this year.

Highlights include:

  • 5 medical tourism hubs

  • Upgrade of the National Institute of Hospitality

  • Training 10,000 tourist guides

Concerns:

  • Low allocation for marketing and promotion

  • Focus mainly on urban areas, with rural tourism under-invested

  • Core issues like GST rationalization and industry status claims are ignored

Women Empowerment

Total budget for women-focused schemes is ₹5,00,879 crore, up 25.9% from ₹3,97,885 crore last year.

Initiatives include:

  • SHG programs and Mission Shakti: ₹3,605 crore

  • Support for girls’ hostels and women-led MSMEs

Challenges:

  • Health sector employment for women is overlooked

  • Anganwadi and POSHAN 2.0 receive only a 5% increase, which is insufficient to address child malnutrition

  • Government announced measures for women’s safety and employment, but real change remains limited

  • Last year, social welfare saw a cut of ₹9,999 crore

Overall Analysis

While the Budget 2026-27 makes big announcements, the actual impact on students, healthcare, rural tourism, and women remains questionable. Many allocations are focused on infrastructure and large projects, but implementation and real benefits may fall short.

Critics argue that unemployment, inflation, and rural development have not been adequately addressed, making this a budget heavy on announcements but light on tangible outcomes.

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