Minority Scholarship Funds Cut Sharply in Budget 2026-27

The Students Islamic Organisation of India (SIO) has criticized the Union Budget 2026-27 for significantly reducing funding for minority scholarships. The organization states this decision disadvantages already marginalized communities.

Budget Allocations Face Scrutiny

Finance Minister Nirmala Sitharaman presented the Education Budget 2026-27 on February 1. The budget increased allocations for scholarships aimed at Scheduled Caste, Scheduled Tribe, and Other Backward Classes by over Rs 1,000 crore. However, funding for schemes targeting minority communities saw substantial cuts.

SIO reported that minority scholarship funds are considerably lower than in previous years. Pre-matric and post-matric allocations have seen minimal recovery after severe reductions. The Merit-cum-Means scholarship program appears virtually dismantled. Funding for madrasa education has also been reduced to zero for the second consecutive year.

Key Funding Reductions Highlighted

The budget allocated almost no funds for the merit-cum-means scholarship. This scholarship was intended for minority students pursuing professional and technical courses. The Education Scheme for Madrasas and Minorities received no financial allocation.

The Prime Minister–Virasat Ka Samvardhan (PM VIKAS) scheme experienced a sharp decrease. Its funding dropped from Rs 517 crore in the previous year to Rs 303 crore in the current budget. SIO states this reduction will weaken socio-economic and skill-based empowerment initiatives for minorities.

Scholarship schemes under the Ministry of Social Justice and Empowerment received the largest share of the India Budget 2026-27. These benefit Other Backward Classes, Economical Backward Classes, and de-notified, nomadic, and semi-nomadic tribes.

Broader Education Funding Concerns

SIO argues that overall education funding remains inadequate. Education received only 4.6% of GDP. This falls short of the 6% of GDP commitment outlined in the National Education Policy (NEP) 2020. The organization believes this funding level violates the government’s stated goals of capacity building and ensuring equitable access to opportunities.