The Union Budget 2026-27 presented by Finance Minister Nirmala Sitharaman has brought significant shifts in scholarship funding for students from various social categories, reflecting the government’s priorities in promoting education for historically marginalised groups while tightening allocations for some minority-focused programmes.
Increased Scholarship Funding for SC, ST, OBC and Related Groups
The Budget estimates for scholarships aimed at Scheduled Castes, Scheduled Tribes, Other Backward Classes (OBCs), Economically Backward Classes (EBCs) and De-notified, Nomadic and Semi-nomadic Tribes (DNTs) have generally been increased for 2026-27. Total additional outlays across these categories exceed Rs 1,000 crore compared with the previous fiscal year’s allocations. For SC students, the post-matric scholarship allocation remains steady at about Rs 6,360 crore, while pre-matric scholarship funding continues at similar levels. Allocation for the National Fellowship for SC students is also increased moderately.
OBC and related groups see larger proportionate increases:
- Post-matric scholarship for OBC/EBC/DNT grows by around 4 per cent.
- Pre-matric scholarship for OBC/EBC/DNT rises by over 15 per cent.These changes aim to widen access to both basic and advanced education for students from economically and socially disadvantaged backgrounds
Tribal Affairs Scholarship Allocations
Under the Ministry of Tribal Affairs, several key scholarship programmes receive higher allocations in Budget 2026:
- National Fellowship and Scholarship for Higher Education of ST Students is allocated Rs 340 crore, its highest in recent years.
- Pre-matric scholarship for tribal students also sees an increase compared with the last year.
- Support for Eklavya Model Residential Schools (EMRS) and Tribal Research Institutes also rises modestly.
However, some tribal post-matric support sees reductions compared with revised estimates for the current year, indicating shifting priorities within the tribal education funding landscape.
Minority Scholarship Schemes Face Sharp Cuts
In contrast to increased funding for SC, ST and OBC programmes, the budget allocations for minority education schemes show significant cuts. Most notably:
- Merit-cum-Means Scholarship for minority students pursuing professional and technical courses is drastically reduced, with nearly zero allocation compared with several crores last year.
- The Education Scheme for Madrasas and Minorities has no allocation in the new fiscal estimates.
- Although pre-matric scholarships for minorities register a slight uptick, the absolute funding is low compared with historical figures.
- Post-matric scholarships for minorities are cut by over 30 per cent
These cuts have prompted concern among educators and advocates who argue that reduced financial support may hinder access to higher education for financially weaker students from minority communities.
National Overseas Scholarship and Fellowship Funding
Some specialised schemes, such as the National Overseas Scholarship (NOS) for SC and ST students, see mixed changes. While there is a slight reduction for SC in absolute terms from the previous year’s estimates, tribal overseas study support still retains budgetary space, signalling continued government backing for study abroad opportunities for marginalised students.
Policy Context and Broader Education Budget Trends
Overall, the education sector budget for 2026-27 reflects a strategic emphasis on strengthening support for school- and college-level access through centrally sponsored schemes and scholarships targeted at scheduled caste, tribe and backward community students. At the same time, the reduced funding for minority scholarship programmes underscores policy trade-offs within the broader education financing framework. Observers note that the shifts in scholarship allocations will influence access to continuing education, particularly at higher and professional levels, and will require complementary policy measures to ensure inclusive opportunities across all communities.