Education Budget 2026: Allocation still falls short of NEP targets; founders call for quality over GER

With just ten days left for the Union Budget 2026, founders of educational institutions have urged the government to move beyond enrolment expansion and focus more on bridging skill and quality gap, and achieve 6% allocation for education in line with the National Education Policy (NEP).

Citing the Economic Survey 2024-25, Pravesh Dudani, founder and chancellor of Medhavi Skills University, said while the number of higher educational institutions has increased by 13.8%, and the Gross Enrolment Ratio has improved from 23.7% to 28.4% over the last eight years, budgetary spending should now focus on improving access, quality, and outcomes.

Dudani said that fund allocation for academic and digital infrastructure should increase to translate invocation into industry-ready solutions, which fiscal incentives can strengthen the apprenticeship ecosystem and promote industry collaboration.

“Alongside this, spending should also focus on expanding digital infrastructure through platforms such as DIKSHA and SWAYAM, enhancing broadband connectivity, and promoting inclusive EdTech adoption," he added.

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The NEP 2020 policy read: “Unfortunately, public expenditure on education in India has not come close to the recommended level of 6% of GDP, as envisaged by the 1968 Policy, reiterated in the Policy of 1986, and which was further reaffirmed in the 1992 review of the Policy.”

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Reiterating the need to raise education spending to 6% of GDP, as envisaged under NEP 2020, Manek Daruvala, founder and director of Triumphant Institute of Management Education (T.I.M.E), said during India’s youthful population — nearly 65% under the age of 35 — presents a demographic advantage but also exposes deep structural gap in higher education.

He noted that the gross enrolment ratio for higher education remains at 28-30%, far below the target of 50% set in the NEP policy.

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“Enrolment surges have outpaced infrastructure, leaving gaps in labs, digital facilities, and skill-based teaching. Outdated curricula push rote learning over critical thinking and problem-solving, affecting the employability of the graduates,” he said.

“Curricula should align with emerging technologies. Driving initiatives like Atal Tinkering Labs and digital resources at a larger scale, especially into the rural areas is essential. Pushing employability levels requires skilling via industry partnerships and National Centres of Excellence,” Daruvala said.

“By investing in infrastructure, NEP execution, skilling, and competitiveness, Budget 2026 can transform education, empower youth globally and build a skilled workforce for Viksit Bharat,” he added.