Expansion of SC/ST Scholarships

SC/ST Scholarships Latest News

• The Centre is considering raising parental income limits for SC/ST scholarships from FY 2026-27 to widen access amid declining beneficiary numbers.

Introduction

• The Union government is considering significant changes to the eligibility criteria for pre-matric and post-matric scholarships for Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and Denotified Tribes (DNTs).
• One key proposal under discussion is the upward revision of the parental income limit, aimed at expanding access to these schemes from the financial cycle 2026-27 to 2030-31.
• The move comes amid declining beneficiary numbers and calls from Parliamentary committees to make the income criteria more inclusive.

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About SC/ST Scholarships

• These scholarships are centrally sponsored schemes jointly funded by the Union and State governments in a 60:40 ratio (90:10 for the Northeastern states).
• They provide financial assistance to students from marginalised communities to support their education:
  • Pre-Matric Scholarships: Typically cover Classes IX and X. For SCs, they are available from Classes I to X for children of parents engaged in “unclean or hazardous” occupations.
  • Post-Matric Scholarships: Cover education beyond Class X.
  • Current Eligibility: The annual parental income must not exceed Rs. 2.5 lakh.

Proposed Revisions to Income Limits

• For STs: The Ministry of Tribal Affairs is considering increasing the limit to Rs. 4.5 lakh for both pre-matric and post-matric scholarships.
• For SCs, OBCs, and DNTs: The Social Justice Ministry is discussing similar revisions.
• Parliamentary panels have suggested doubling the income ceiling for OBC scholarships and introducing pre-matric scholarships from Class V onwards for OBCs.

Budgetary Allocation and Importance

• For FY 2025-26:
  • Centrally sponsored scholarships for SCs, OBCs, EBCs, and DNTs account for 66.7% of the Social Justice Ministry’s Rs. 13,611 crore budget.
  • For STs, such scholarships make up 18.6% of the Tribal Affairs Ministry’s Rs. 14,925.81 crore allocation.
• These figures underline the schemes’ central role in enabling education for disadvantaged communities.

Declining Beneficiary Trends

• Government data reveals a worrying decline in scholarship beneficiaries:
  • SCs: Pre-matric beneficiaries fell by 30.63% (2020-21 to 2024-25); post-matric by 4.22%.
  • OBCs, EBCs, DNTs: Pre-matric beneficiaries dropped from 58.62 lakh (2021-22) to 20.25 lakh (2023-24); post-matric fell from 43.34 lakh to 38.42 lakh.
  • STs: Pre-matric numbers fell by 4.63 lakh; post-matric by 3.52 lakh in the same period.

Recommendations from Parliamentary Committees

• Two key Parliamentary panels have flagged the need for reforms:
• OBC Welfare Committee:
  • Urged doubling the income limit for OBC pre- and post-matric scholarships.
  • Recommended expanding pre-matric coverage to start from Class V.
• Panel on Tribal Affairs and Social Justice:
  • Suggested revising parental income limits for ST scholarships.
  • Emphasised that current limits exclude many families in need.
• Both committees stressed that scholarships are vital tools for social mobility, and overly restrictive criteria undermine their purpose.

Socio-Economic Impact of Raising Income Limits

• Raising the parental income ceiling could:
  • Expand Coverage: Include more lower-middle-income families who still face financial barriers.
  • Reduce Dropouts: Enable continued education beyond primary levels.
  • Bridge Inequality: Help disadvantaged communities access higher education and competitive careers.
• However, it will also require higher budgetary allocations and robust monitoring to ensure genuine beneficiaries receive aid.

Future Outlook

• If approved, the revised limits will take effect in FY 2026-27, coinciding with the start of a new five-year financial planning cycle.
• The government’s challenge will be to balance inclusivity with fiscal sustainability, while ensuring the scholarships reach intended recipients without leakages.