Union Budget FY27: Child Spending Rises Incrementally, Structural Prioritisation Still Missing
Measured increases across schemes signal intent, but the absence of a child-centric fiscal framework continues to constrain impact
Puja Marwaha: CEO, Child Rights & You (CRY)
SDG 3: Good Health and Well-being | SDG 4: Quality Education | SDG 10: Reduced Inequalities
Ministry of Finance | Ministry of Women and Child Development
The Union Budget 2026-27 signals a modest but discernible improvement in allocations for children. However, the overall pattern suggests that child-related expenditure continues to function as an incremental add-on rather than as a central organising pillar of fiscal planning, with allocations largely tracking existing schemes rather than being anchored to outcome gaps or demographic pressure points. Total child-related allocations now stand at ₹1,32,296.85 crore in 2026-27 (BE), up from ₹1,16,132.5 crore in 2025-26 (BE), reflecting an absolute increase of ₹16,164.35 crore.
As a share of the overall Union Budget, the Child Budget has increased from 2.29 percent in 2025-26 to 2.47 percent in 2026-27. Allocations as a percentage of GDP have also edged up marginally, from 0.33 percent to 0.34 percent. While these movements indicate positive intent, they remain limited when viewed against India’s demographic profile, inflationary pressures, and persistent deficits in child health, nutrition, learning outcomes, and protection. The budget thus reflects incremental expansion within existing fiscal boundaries rather than a structural reordering of priorities.
Child Health and Nutrition: Incremental Strengthening Within Existing Frameworks
In the health and nutrition sector, allocations for the Flexible Pool for Reproductive and Child Health (RCH), Health System Strengthening, National Health Programme, and the National Urban Health Mission have increased by ₹261.15 crore, bringing the total to ₹4,591.58 crore. Saksham Anganwadi and Poshan 2.0 has been allocated ₹19,635 crore, marking a 5.19 per cent increase of ₹969 crore and reinforcing continued attention to early childhood nutrition and care.
The PM Poshan Shakti Nirman scheme now stands at ₹12,749.99 crore, reflecting a 2 percent increase over the previous year. Notably, the Jal Jeevan Mission has been reintroduced into the Child Budget after FY 2024-25, with an allocation of ₹6,736.36 crore. This re-entry signals renewed recognition of safe drinking water as a foundational determinant of child health and nutrition outcomes.
Taken together, these allocations strengthen service continuity but do so largely within existing programme architectures. Their effectiveness will continue to depend on state-level absorption capacity, frontline staffing, and coordination across health, nutrition, and water interventions. The budget does not yet indicate a systemic shift towards resolving structural bottlenecks that shape uneven child health outcomes across regions.
Child Development, Education, and Protection: Selective Expansion, Uneven Rebalancing
In the domains of education and child protection, allocation patterns remain mixed. Mission Vatsalya has been allocated ₹1,550 crore, reflecting a 3.33 percent increase. Given its expanding mandate across child protection, care, and rehabilitation, this rise remains modest relative to the growing demands placed on frontline institutions.
Samagra Shiksha Abhiyan has been allocated ₹42,100 crore, representing a 2.06 percent increase over the previous year. While this sustains continuity in school education financing, the scale of increase remains limited when assessed against learning recovery needs, digital access gaps, and infrastructure requirements across states.
A sharper shift is visible in allocations for Eklavya Model Residential Schools, which have increased by over 20 percent to ₹7,200 crore, signalling stronger emphasis on educational access for tribal children. Allocations for Navodaya Vidyalayas and Kendriya Vidyalayas have also risen, reinforcing support for centrally managed and residential schooling models.
The allocation of ₹3,200 crore for Atal Tinkering Labs in 2026-27 reflects renewed emphasis on innovation and scientific temper in government schools. Similarly, the inclusion of the Skill India Programme within the Child Budget aligns with the National Education Policy’s vision of integrating vocational education at earlier stages.
However, these targeted investments coexist with stagnation in several demand-side and equity-focused instruments. Allocations for pre- and post-matric scholarships for Scheduled Castes remain unchanged, while scholarships for OBCs, EBCs, Denotified and Nomadic Tribes, and children with disabilities have seen only marginal increases. Although the Programme for Development of Scheduled Tribes (PM Vanbandhu Kalyan Yojana) has recorded a substantial rise, the overall pattern suggests a growing tilt towards institution-centric and innovation-oriented investments, even as instruments that directly support retention, mobility, and transition for marginalised students remain relatively flat.
What the Budget Signals, and What It Avoids
Taken together, the Child Budget 2026-27 reflects selective expansion rather than systemic recalibration. Increases are distributed across flagship and sector-specific programmes, but foundational protection systems and equity instruments continue to receive relatively modest attention. The Child Budget’s still-limited share within overall expenditure suggests that children’s needs are being accommodated within prevailing fiscal margins rather than shaping expenditure strategy more centrally.
Looking ahead, advancing inclusive and sustainable growth will require clearer articulation of how child-related allocations are expected to evolve over the medium term, and how shifts in spending composition correspond to identified outcome gaps across health, nutrition, learning, and protection. Anchoring child development more firmly within medium- and long-term fiscal frameworks would strengthen the translation of intent into durable outcomes, while preserving flexibility across sectors and levels of government.
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