The Union Budget 2026 has significantly increased scholarship allocations for students from Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) by over ₹1,000 crore. Conversely, funding for schemes targeting minority communities has seen substantial cuts, with some allocations reduced to zero.
Increased Funding for Marginalized Communities
Scholarships for OBC, Economically Backward Classes (EBC), and De-notified/Nomadic Tribes (DNT) students received the largest share of the increased budget. These programs fall under the Ministry of Social Justice and Empowerment.
The Ministry of Tribal Affairs saw increased outlays for ST students. The National Fellowship and Scholarship for Higher Education of ST students received ₹339.98 crore. The Post-matric Scholarship for ST students was allocated ₹663.81 crore for the fiscal year 2026-27 .
Scholarships for OBC students also saw an increase. The Pre-Matric Scholarship for OBC, EBC, and DNT students received ₹350 crore, a 15.38% rise from the previous year. Post-matric scholarships for these groups increased to ₹1,300 crore.
The budget for SC students remained stable for Post-Matric and Pre-Matric scholarships. The National Fellowship for SC students increased to ₹230 crore.
| Scholarship | 2025-26 (₹ Cr) | 2026-27 (₹ Cr) | Change (%) |
|---|---|---|---|
| Post Matric Scholarship for OBC, EBC, DNT | 1,250 | 1,300 | 4 |
| Pre Matric Scholarship for OBC, EBC, DNT | 300 | 350 | 15.38 |
| National Fellowship for SC | 212 | 230 | 8.49 |
Minority Scholarship Funds Slashed
Schemes for minority students experienced broad funding reductions. The Merit-cum-Means scholarship for professional and technical courses for minority students saw its allocation drop from ₹7.34 crore to ₹6 lakh. This represents a nearly 99% decrease.
The Education Scheme for Madrasas and Minorities received no allocation in the 2026-27 budget. Previous allocations for this scheme were minimal, at ₹0.01 crore in 2025-26.
Post-matric scholarships for minorities were allocated ₹581 crore, an increase from ₹413.99 crore in 2025-26. However, this figure is significantly lower than previous years’ allocations.
| Scheme | 2025-26 (₹ Cr) | 2026-27 (₹ Cr) | Change (%) |
|---|---|---|---|
| Post-Matric Scholarship for Minorities | 413.99 | 581.00 | 33.57 |
| Merit-cum-Means Scholarship (UG, PG) | 7.34 | 0.06 | -99.18 |
| Education Scheme for Madrasas and Minorities | 0.01 | 0 | -100 |
ST Scholarship Allocations Reviewed
The National Fellowship and Scholarship for Higher Education of ST students received ₹340 crore for 2026-27 , its highest allocation in three years. The National Overseas Scholarship (NOS) for ST students was allocated ₹20 crore.
Schemes like Eklavya Model Residential Schools (EMRS) and Pre-Matric Scholarships for Tribal Students saw modest increases. EMRS received ₹7,150.01 crore, while Pre-Matric Scholarships for Tribal Students were allocated ₹339.05 crore.
However, the Post-Matric Scholarship for Tribal Students experienced a decrease of 27% compared to the current year’s allocation. It was allocated ₹3126.49 crore for 2026-27 .
| Scheme | 2025-26 (₹ Cr) | 2026-27 (₹ Cr) | Change (%) |
|---|---|---|---|
| National Fellowship and Scholarship for Higher Education of ST Students | 0.02 | 340 | (Large Increase) |
| Scholarship to ST Students for Studies Abroad (NOS) | 0.01 | 20 | (Large Increase) |
| Eklavya Model Residential School (EMRS) | 7,088.60 | 7,150.01 | ~0.86 |
| Post-Matric Scholarship for Tribal Students | 2,462.68 | 3126.49 | ~27 |