Expansion of SC/ST Scholarships

Aug. 14, 2025

Why in the News?

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

What’s in Today’s Article?

SC/ST Scholarships (Introduction, Features, Proposed Reforms, Budgetary Allocation, Significance, Future Outlook, etc.)

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.

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

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

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:

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

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.