Union Budget 2026: Girls’ hostel in every district, five university townships planned

Finance Minister Nirmala Sitharaman announced major education initiatives in the Union Budget 2026, including a girls’ hostel in every district and five new university townships. The Budget also proposes setting up a National Institute of Hospitality to boost skill development.

Finance Minister Nirmala Sitharaman on Sunday announced a wide-ranging set of education and skill development initiatives while presenting the Union Budget 2026, including plans to establish a girls’ hostel in every district and develop five new university townships across the country.

The proposed university townships will be located near major industrial and logistics hubs and are expected to house multiple universities and colleges. Officials said the townships will include residential facilities and advanced research infrastructure, aimed at boosting higher education capacity and supporting regional development.

Sitharaman also unveiled plans to set up a National Institute of Hospitality to strengthen education and skill training in the services sector. In a further push towards creative and digital learning, the Budget proposes support for the Indian Institute of Creative Technologies, Mumbai, to establish content laboratories in more than 15,000 secondary schools nationwide.

To strengthen design and innovation education, the government announced the creation of a new design institute in eastern India, aimed at nurturing creative talent and expanding the country’s design ecosystem.

Beyond education, the Budget outlined key healthcare and wellness initiatives. The government plans to establish three new All India Institutes of Medical Sciences (AIIMS) and three new All India Institutes of Ayurveda. It also announced a programme to train 1.5 lakh caregivers to promote wellness and yoga services across the country.

The announcements form part of the government’s broader effort to expand access to education, healthcare and skill development while improving national infrastructure.

Notably, Sitharaman also made parliamentary history by presenting her ninth consecutive Union Budget on February 1, 2026.

Finance Minister Nirmala Sitharaman also announced a capital expenditure of Rs 12.2 lakh crore in the Budget for 2026-27, to boost big-ticket infrastructure projects for growth and jobs in the economy. 

Presenting the Budget, the Finance Minister said that an Infrastructure Risk Development Fund would be set up to accelerate the development of big projects.

She said to push economic growth, the Budget proposes to deliver a powerful push to infrastructure, including highways, ports, railways and power projects, scale up manufacturing in 7 strategic sectors and create champion MSMEs.

The government has maintained fiscal prudence and monetary stability whilst maintaining a strong thrust on public investments, she said, stressing that India must deeply integrate with global markets, exporting more and attracting foreign investment as well.

The Finance Minister said that the government has undertaken comprehensive reforms towards creating employment, boosting productivity and accelerating growth. "Over 350 reforms have been rolled out, and the 'Reforms Express' is well on its way, and India will continue to take confident steps towards Viksit Bharat, balancing ambition with inclusion," she said.

Sithamaraman said that the Union Budget prepared in Kartivya Bhavan is based on three "karatavyas" (duties). "We are inspired by three kartavya: accelerate and sustain economic growth, fulfill aspirations of people and build capacity, and the third is to ensure that every family, community, and region has access to resources."

The first kartavya is to scale up manufacturing in seven strategic and frontier sectors, she said.

She said that the first requirement is to sustain the moment of momentum of structural reforms, continuous, adaptive and forward-looking.

"Cutting-edge technologies, including AI, can serve as growth multipliers," she added.

"Over 350 reforms have been rolled out; As a growing economy with expanding trade and capital needs, India must also remain deeply integrated with global markets," she added.

(With IANS inputs)