Union Budget 2026: What a leaner I&B ministry budget means for media and advertising

New Delhi: The Union Budget 2026 has delivered a measured yet telling signal for the Ministry of Information and Broadcasting (MIB). The expenditure budget for the ministry highlighted a return to fiscal normalcy after a one-year spike, coupled with carefully targeted bets on content creation, broadcasting infrastructure, and the rapidly expanding creator economy.

For India’s media, advertising, and marketing ecosystem, the union budget outlines a clear shift from broad-based spending to selective, future-oriented investment.

For FY27, the Ministry has been allocated a total expenditure of Rs 4,551.94 crore. This marks a decline from the revised estimate of Rs 6,103.02 crore in FY26, while remaining marginally higher than the FY26 Budget Estimate of Rs 4,358.38 crore.

FY26 was an outlier year marked by significant mid-course corrections and enhanced spending, while FY27 signals a recalibration rather than a retreat. In effect, the Ministry’s allocation has fallen by roughly 25% compared to FY26 revised estimates, but the reduction is largely concentrated in a few large heads, most notably Prasar Bharati.

At the same time, the union budget 2026 continues to protect and, in some cases, strengthen spending on content creation, talent development, and communication infrastructure.

A reset after an exceptional FY26

To understand the FY27 allocation, it is essential to read it against the backdrop of FY26. Last year’s revised estimate for the Ministry stood at Rs 6,103.02 crore, significantly higher than the original budgeted figure. This surge was driven primarily by a sharp increase in support to Prasar Bharati, which received Rs 4,059.24 crore in FY26 (RE), an unusually high allocation by historical standards.

In FY27, Prasar Bharati’s allocation has been brought down to Rs 2,291.88 crore, closer to its traditional funding range. This single adjustment explains a substantial portion of the overall reduction in the Ministry’s total expenditure.

From a market perspective, this suggests that FY26 was not a new baseline but a year of exceptional spending, possibly to address accumulated liabilities, operational costs, or specific requirements. FY27, therefore, represents a reset rather than a structural contraction.

Notably, even as overall spending moderates, the Ministry’s capital expenditure has increased. Capital outlay for FY27 stands at Rs 57.38 crore, up from Rs 43.79 crore in the FY26 Budget Estimate. This indicates a continued, albeit modest, focus on asset creation and infrastructure, even as overall fiscal space tightens.

A Rs 250 crore push to the creator economy

The most consequential announcement for India’s content and media ecosystem is the Rs 250 crore allocation for Talent Development in the Animation, Visual Effects, Gaming and Comics (AVGC) sector.

This is a new budget line, with no corresponding allocation in previous years, making it one of the most significant fresh interventions by the Ministry in recent times.

As outlined in the Union Budget documents, the programme aims to establish AVGC content creator labs in 15,000 secondary schools and 500 colleges across the country. The objective is to build a large, skilled talent base capable of feeding India’s growing demand for animation, gaming, immersive media, and digital storytelling.

For brands, agencies, and platforms, this is a long-term supply-side intervention with far-reaching implications. By institutionalising AVGC training at scale, the government is effectively seeding the next generation of creators who will shape advertising content, branded entertainment, gaming IPs, and extended reality experiences.

However, its immediate impact on the creator economy will depend heavily on how quickly and effectively these labs become operational.

More importantly, this move positions the creator economy not as a fringe or platform-led phenomenon but as a strategic national capability, aligning closely with India’s ambition to become a global hub for content production.

The programme signals intent, but its outcomes will need close scrutiny over subsequent Budget cycles.

Broadcasting infrastructure remains a strategic focus

Even with a reduction in overall expenditure, broadcasting infrastructure continues to command priority. The Budget allocates Rs 509.24 crore for Broadcasting Infrastructure Network Development, a programme implemented through Prasar Bharati.

This head focuses on the digitalisation and FMisation of the All India Radio network, as well as upgrades to Direct-to-Home (DTH) platform capacity. These investments are critical to expanding reach, improving signal quality, and accommodating more channels and services.

For advertisers and media planners, this has direct implications. Improved broadcast infrastructure, particularly in radio and television, strengthens reach in Tier 2, Tier 3, and rural markets, segments that continue to be vital for mass brands and government communication alike.

Public communication and awareness spending rise

Another area that sees a clear uptick is Development Communication and Information Dissemination, with allocations rising to Rs 250 crore in FY27, compared to Rs 196.11 crore in FY26 (RE).

This head typically covers large-scale government communication campaigns aimed at spreading awareness about public schemes, welfare programmes, and policy initiatives. For the advertising ecosystem, this is a crucial category, as it often translates into significant media buying across print, television, radio, digital, and outdoor platforms.

The increase suggests that, even amid fiscal tightening elsewhere, the government continues to prioritise communication as a tool for policy delivery.

Meanwhile, funding for the Community Radio Movement remains unchanged at Rs 8 crore, indicating continuity rather than expansion. While community radio remains an important grassroots medium, it does not appear to be a focus area for scaled-up investment in FY27.

Film institutes and content bodies see selective support

Allocations to autonomous bodies under the Ministry present a nuanced picture. Satyajit Ray Film and Television Institute (SRFTI), Kolkata, has received a substantial increase, with funding rising to Rs 80 crore in FY27, up from Rs 55 crore in FY26 (RE).

Film and Television Institute of India (FTII), Pune, has been allocated Rs 89.97 crore, marginally lower than its FY26 revised figure but broadly stable in real terms.

The National Film Development Corporation (NFDC) has received Rs 35 crore, slightly higher than last year, indicating continuity rather than a decisive push, reflecting a cautious approach to institutional funding.

Implications for the orange economy and content universe

For the broader orange economy, encompassing media, entertainment, advertising, gaming, and digital content, the FY27 Budget sends a clear and calibrated message. The emphasis is clearly on capacity-building rather than demand stimulation, with investments directed toward skills, infrastructure, and institutional support rather than large-scale spending expansion.

The AVGC talent programme directly strengthens the creator economy by expanding the talent pool at scale. Investments in broadcasting infrastructure enhance distribution and accessibility, particularly beyond metropolitan markets.

Continued investment in broadcasting infrastructure supports reach, while increased spending on information dissemination reinforces the government’s role as a major advertiser.

While the rollback in Prasar Bharati funding may temper short-term expenditure flows, the underlying architecture of public media spending remains intact. The emphasis has shifted from volume-driven spending to capability-driven investment.

The Union Budget 2026–27 does not radically reshape the Ministry of Information and Broadcasting’s financial footprint. Instead, it marks a course correction after an exceptional year, accompanied by selective bets on future-facing areas such as AVGC skills and digital broadcasting.

For brands, agencies, and creators, the takeaway is clear: the next phase of growth in India’s content and communication ecosystem will be built less on scale alone and more on skills, platforms, and sustainable infrastructure.

Growth in India’s content and communication ecosystem will increasingly depend on execution quality and private-sector participation, rather than sustained public spending increases. The Budget lays out intent, but its real impact will only become clear as programmes move from allocation to implementation.