Education Budget 2025: Modi government cuts Rs 1,000 crore from minority, ST scholarships

NEW DELHI: The National Fellowship and Scholarship for Higher Education of Scheduled Tribe Students has had its outlay cut by 99.9% in the union budget 2025, presented by finance minister, Niramal Sitharaman on Saturday. It has got only Rs 0.02 crore – Rs 2 lakh – down from Rs 165 crore in the current financial year which was revised up to Rs 250 crore.

Live Updates | Education Budget 2025

Several scholarships for minority and tribal students have seen their allocations severely docked in next financial year’s budget. The pre-matric scholarship for minorities saw a cut of 39.9% with just Rs 197.50 crore allocated for 2025-26. Similarly, the post-matric scholarship (PMS) budget for minorities has been cut by Rs 731.39 crore, a drop of 63.8%.

The merit-cum-means scholarship (MCM) scholarships for professional and technical courses (UG, PG) for minorities, also saw a cut of Rs 26.46 crore with only Rs 7.34 crore allocated for 2025-26.

Nirmala Sitharaman’s speech, while presenting her eighth consecutive budget in Lok Sabha, focussed on reforms in six domains- taxation, urban development, mining, financial sector, power and regulatory reforms.

The education ministry received an outlay of Rs 1.28 lakh crore, a 6.65% increase from last fiscal year 2024-25.

Education Budget: More funds for OBC scholarships

Another section of scholarships for a different segment of students have seen allocations rise.

The National Fellowship for Other Backward Classes (OBC) has received an increased allocation of Rs 190.13 crore, a 245% increase from the current year. Similarly, National Overseas Scholarships for Scheduled Caste (SC) received a 36% increase in budgetary allocation. The post-matric scholarship for OBC, economically backward communities (EBC), and denotified tribes (DNT) saw an increase of Rs 329 crore from last year.

The budgetary allocation for ST students’ scholarship to study abroad – the National Overseas Scholarship (NOS) – has been cut by Rs 5.99 crore and left with a negligible allocation of Rs 0.1 crore (Rs 10 lakh) in 2025-26.

During the Interim Budget announced in February, 2024, SC, OBC and minority scholarships had seen massive cuts.

Budget 2025: Scholarship for minorities sees steady cuts

The budgetary provisions for scholarships for minority students have been declining over the years. In the current financial year, the budget for the pre-matric scholarship for minorities was revised down to just Rs 90 crore, a Rs 236.16 crore cut from the estimate. Then, the actual amount spent in 2023-24 – Rs 337.17 crore – was itself smaller than the amount budgeted for that year.

The post-matric scholarship for minorities has followed a similar trend. The revised estimate for the current year saw a massive cut of Rs 801.09 crore from its original budgetary allocation. The difference in budget estimates of the current and next financial years is over 63%. This is a scholarship that is meant to support students after Class 10 (matriculation)

The revised estimates for merit-cum-means (MCM) scholarship for professional and technical courses (undergraduate and postgraduate) for minority students saw a decreased allocation of Rs 19.41 crore from its original allocation of Rs 33.80 crore in 2023-24.

The table below shows the slow hollowing out of scholarship programmes for students from minority communities.

Union Budget 2025: Scholarships for minorities (BE in Rs. crore)

Even the education scheme for madrasas and minorities was slashed by Rs 1.99 crore with only Rs 1 lakh allocated in 2025-26.

Education Budget 2025: SC, OBC scholarships

Overall, the scholarship for Dalit and tribal and OBC students increased slightly with the highest allocation to National Fellowship for OBC of Rs 190.13 crore in 2025-26. National Overseas Scholarship for SC students has been earmarked Rs 130 crore, 36% increase from this year.

According to the budget papers of the ministry of social justice and empowerment, the revised estimates for post-matric scholarship for scheduled caste (SC) for 2024-25 was Rs 5,500, after a cut of Rs 849.98 crore.

Pre-matric scholarships in general have seen cuts with the government arguing that that state of education (from Class 6 to 9) is already covered by the Samagra Shiksha Abhiyan scheme.

Union Budget 2025: Scholarship for SC, OBC (In Rs crore)

Union Budget 2025: Scholarships for Adivasi students

The National Fellowship and Scholarship for Higher Education of ST was all but erased with just Rs 2 lakh allocated to the scheme in 2025-26.

The national overseas scholarship (NOS) saw a cut of Rs 5.99 crore with only Rs 0.01 crore allocated.

However, the Eklavya Model Residential Schools (EMRS) saw a 10% increase in allocation for 2025-26 with Rs 7,088.60 allocated for the next year. However, both the revised estimates for this year and the actual spends from last year show cuts.

Education Budget 2025: Scholarships, fellowships for ST (BE in Rs Cr)

The pre-matric and post matric scholarships for tribal students have seen increases of Rs 28% and 1.2%, respectively.