One Girls’ Hostel In Every District In India: FM Sitharaman’s Big Push For Women’s Education

Finance Minister Nirmala Sitharaman on Sunday announced a series of people-centric and development-oriented proposals while presenting the Union Budget, with a strong focus on women's education, states' finances, sports, tourism, agriculture, and taxpayer relief.

A major highlight of the budget was the proposal to establish a girls' hostel in every district through Viability Gap Funding (VGF). The initiative aims to remove barriers to education and ensure safety for female students, especially those pursuing higher education in STEM institutions. During her budget speech, Sitharaman noted that prolonged study hours, collaborative laboratory work and limited accommodation options often pose challenges for girl students. To address this, the government will provide capital support and VGF to make these hostels financially viable and accessible across districts.

In a move expected to benefit students and families, the Finance Minister also announced a reduction in the Tax Collected at Source (TCS) rate under the Liberalised Remittance Scheme (LRS). The TCS rate for remittances made for education and medical purposes will be reduced from 5 per cent to 2 per cent, easing the financial burden on those seeking education or treatment abroad.

Strengthening fiscal federalism, Sitharaman said the Centre has accepted the recommendations of the 16th Finance Commission to retain the vertical share of tax devolution to states at 41 per cent. For the financial year 2026-27, an allocation of ₹1.4 lakh crore has been earmarked for states, providing them with greater financial stability and flexibility to undertake development initiatives.

The Finance Minister also announced tax relief for accident victims, stating that any interest awarded by Motor Accident Claims Tribunals to a natural person will be fully exempt from income tax. Additionally, the government will do away with Tax Deducted at Source (TDS) on such interest, offering timely financial relief to beneficiaries.

On the environment and tourism front, Sitharaman proposed the development of ecologically sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu & Kashmir, as well as in the Araku Valley of the Eastern Ghats and the Western Ghats. She also announced the development of turtle trails along key nesting sites in Odisha, Karnataka and Kerala to promote conservation-focused tourism.

In agriculture, the Finance Minister proposed launching "Bharat Vistar," a multilingual AI-based tool that will integrate agri-stack portals and ICAR's agricultural practice packages with advanced AI systems. The initiative aims to provide farmers with easy access to agricultural resources and best practices.

To boost sports and employment, Sitharaman announced the launch of a Khelo India Mission, building on the existing Khelo India programme to systematically nurture talent and transform the sports sector over the next decade.