The Union Budget 2026–27, tabled on 1 February 2026 by Finance Minister Nirmala Sitharaman, has drawn strong criticism from minority student organisations due to significant reductions in funding for scholarship programmes aimed at minority communities. While the budget increases overall spending on scholarships for certain marginalised groups, allocations for minority‑specific schemes have fallen sharply or, in some cases, been removed entirely. The Students Islamic Organisation of India (SIO) condemned the budget’s approach, asserting that cuts to minority education schemes represent a political choice that risks pushing already marginalised students further to the margins and undermining equitable access to higher education.
Steep Reductions in Minority Scholarship Schemes
According to SIO and budget analyses, several key education funding streams for minority students have seen drastic reductions in the 2026–27 estimates:
- Merit‑cum‑Means Scholarship for Professional and Technical Courses, which supports minority students pursuing higher and professional education, has seen its allocation drop from Rs 7.34 crore to just Rs 0.06 crore, effectively rendering the programme non‑functional.
- The Education Scheme for Madrasas and Minorities was allocated zero funding, repeating a similar pattern from previous years.
- The PM VIKAS (PM Virasat Ka Samvardhan) scheme allocation was cut nearly in half from Rs 517 crore to Rs 303 crore, potentially weakening socio‑economic and skill development support for minority communities.
These sharp reductions contrast with increased scholarship outlays for other marginalised groups, such as Scheduled Castes, Scheduled Tribes, and Other Backward Classes, which received additional funding in the 2026–27 budget cycle.
SIO Response and Concerns Over Exclusion
The Students Islamic Organisation of India stated that the dramatic cuts to minority scholarship schemes could exclude many students from historically disadvantaged communities, especially those relying on financial support to pursue higher and technical education. The organisation pointed out that pre‑matric and post‑matric scholarships’ allocations have barely recovered from past cuts, calling it a reversal of equitable education policies.
Critics argue that reducing funds for targeted minority support may widen educational disparities, particularly as the cost of professional education continues to rise. Some analysts also highlight that the overall budget for education remains a small portion of GDP, below targets set in the National Education Policy, potentially impacting long‑term equity goals.
Broader Scholarship Funding Trends
While minority scholarship funding saw steep cuts, other portions of the education budget recorded increases:
- Funding for scholarships under the Ministry of Social Justice and Empowerment aimed at OBCs, Economically Backward Classes (EBCs), and denotified tribes rose by over Rs 1,000 crore.
- Scholarships for SC and ST students, such as post‑matric support and national fellowships, also saw increased outlays in several categories.
These allocations reflect an attempt to broaden financial support for educational opportunities, albeit with significant divergence in focus and funding levels across communities.