Education Budget 2026: OBC, ST scholarships get Rs 1,000 crore boost, minority scheme funds slashed

Budget 2026 for Education: Over Rs 1,000 crore has been added to the budget estimates for a host of scholarships aimed at students from historically-marginalised backgrounds – the Scheduled Castes, Scheduled Tribes and Other Backward Classes. But schemes targeting minority communities continue to face massive cuts, some to the point of zero allocation. Finance minister Nirmala Sitharama presented the budget on Sunday.

Live Updates | Education Budget 2026

Among scholarship schemes under the ministry of social justice and empowerment, those for OBCs, Economical Backward Classes (EBC) , de-notified and nomadic and semic-nomadic tribes (DNT) have the largest share of the budget.

As for the ministry of tribal affairs, the National Fellowship and Scholarship for Higher Education of ST students and Post-matric Scholarship for ST received a higher outlay from 2025-26 – Rs 339.98 crore and Rs 663.81 crore, respectively– in budget 2026.

Scholarships under the ministry of minority affairs have seen cuts practically across the board. The merit-cum-means scholarship for professional and technical courses for minority students has had its outlay cut to almost nil in the Union Budget 2026-27. The scheme had Rs 7.34 crore in the current budget. For the next financial year, it has been allocated Rs 6 lakh. The Education Scheme for Madrasas and Minorities received zero allocation.

Over the past many years, scholarship for minority students has witnessed consistent cuts in budgetary allocations. Over Rs 1,000 crore was slashed in minority and scheduled tribe scholarships in the budget for the current year.

Education Budget 2026: OBC scholarship funds

Scholarships for OBC students have seen a slight rise from 2025-26 with highest allocation to Pre Matric Scholarship for OBC, EBC, DNT. While the budget for pre and post-matric scholarship for SC students remained the same, National Fellowship for SC and post-matric scholarship for OBC, EBC, DNT have seen slight increases.

National Fellowship for OBC and National Overseas Scholarship (NOS) for SC have seen a cut of Rs 13.98 crore in total.

Education Budget 2026: SC, OBC scholarships (budget estimates in Rs crore)

Education Budget: Minority scholarships

The allocation towards post-matric scholarship for minorities has been slashed by 33.57% — Rs 167.01 crore.

At 1.16%, the pre-matric scholarship for minorities sees a slight hike. However, its budget for the current year was revised down to under 1% of the original allocation of Rs 195.70 crore.

Education Budget 2026: Scholarships for minorities (BE in Rs crore)

Budget 2026 Education: ST scholarships

The Union Budget for national fellowship and scholarship for higher education of ST students has been allocated Rs 340 crore for 2026-27 – the highest allocation since 2023-24 – and an increase of Rs 339.98 crore from this year’s budget. Similarly, the National Overseas Scholarship (NOS) has also been given the highest amount in three years.

Other schemes, including Eklavya Model Residential School (EMRS), Pre-Matric Scholarship for Tribal Students and Tribal Research Institutes, are getting small hikes.

However, post-matric scholarship for tribal students is getting 27% less than the current year.

Education Budget 2026: Scholarships, fellowships for ST (BE in Rs Cr)

While the National Fellowship and Scholarship for Higher Education of ST students had barely any allocation in the budget estimates for the current year, its outlay had been revised to Rs 220 crore.