In a critical analysis of the Union Budget for 2026-27, experts have labeled it as an elitist document that prioritizes economic growth and competitiveness while offering minimal solutions to the deep-seated deficiencies in public health and education. Despite a marginal increase in social spending, the new initiatives largely target top-tier institutions, leaving basic schools and hospitals underfunded and failing to address the urgent needs of the majority of the population.
Growth Takes Center Stage, Social Sectors Neglected
According to the latest Economic Survey, India is projected to grow by 7.4 percent this fiscal year, surpassing the average annual growth rate of the past two decades. While robust growth typically provides an opportunity for policy course corrections, the Budget has instead doubled down on enhancing productivity and competitiveness. The first of the government's stated "kartavyas" or duties is to "accelerate and sustain growth by enhancing productivity and competitiveness, and building resilience to volatile global dynamics." Although the other duties include fulfilling the aspirations of the people and promoting inclusive development, the Budget lacks concrete provisions to improve the health and education endowments of the general populace.
Education Initiatives Skewed Towards Elite Institutions
Described by the Finance Minister as a yuva shakti-driven Budget, the education initiatives are predominantly focused on the uppermost segments. Key highlights include the creation of five university townships that will house multiple universities, colleges, and associated housing facilities. Additionally, a new design institute is planned for eastern India, and an upgraded National Institute of Hospitality aims to align academic excellence with industry requirements. The only initiative targeting schools is the proposal to support the Indian Institute of Creative Technologies Mumbai in setting up animation, visual effects, gaming, and comics (AVCG) content creator labs in 15,000 secondary schools and 500 colleges across the country. However, these measures do little to address the pervasive issue of low quality in India's public education sector.
Health Sector Follows a Similar Elitist Pattern
The health sector initiatives mirror the approach taken in education, with a focus on upgrading existing institutions and establishing new ones at the top tier. Existing institutions for Allied Health Professionals (AHPs) are set to be upgraded, and new AHP institutions will be established in both private and government sectors. The "Biopharma SHAKTI" strategy aims to advance healthcare through knowledge, technology, and innovation, but its primary goal is to position India as a global biopharma manufacturing hub. This strategy includes a biopharma-focused network with three new National Institutes of Pharmaceutical Education and Research (NIPER) and the upgrading of seven existing ones. Furthermore, a scheme has been announced to support states in establishing five regional medical hubs in partnership with the private sector, designed as integrated healthcare complexes combining medical, educational, and research facilities. However, the underlying intention is to promote India as a hub for medical tourism services, rather than addressing the basic healthcare needs of the population.
Marginal Social Spend Increase Fails to Address Core Deficiencies
The Budget has marginally raised the share of social spending in total expenditure, but the new schemes are largely aimed at the top tier in their respective fields. Consequently, the impact on schools and hospitals, where severe shortfalls in public service provision are concentrated, is likely to be minimal. This lack of focus on basic services also means that the Budget's impact on India's "disease burden," as referenced by the Minister, is unlikely to be significant. The spending pattern does not cater to the pressing needs of the majority, making it an elitist budget.
Potential for Growth Despite Social Neglect
Despite its shortcomings in addressing social sector deficiencies, the Budget may still contribute to raising the growth rate. Capital expenditure has been increased to its highest level in a decade, which could stimulate economic activity and competitiveness. However, this growth-centric approach risks widening inequalities if the foundational issues in health and education remain unaddressed.
In summary, the Union Budget 2026-27 emphasizes growth and competitiveness at the expense of public health and education. While it introduces initiatives for top-tier institutions and medical tourism, it fails to provide adequate funding for basic schools and hospitals, highlighting an elitist bias that may hinder inclusive development in the long run.
