Source: The post Government plans to revise income limits for student scholarships has been created, based on the article “How can SC/ST scholarships be expanded?” published in “The Hindu” on 14th August 2025. Government plans to revise income limits for student scholarships
UPSC Syllabus Topic: GS Paper 2 – Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.
Context: The Union government is reviewing the parental income limit for post and pre-matric scholarships for marginalised castes and tribes for FY 2026-27 to FY 2030-31. The aim is to expand access by revising the current ₹2.5 lakh annual cap, following recommendations from parliamentary panels.
Proposed Revisions to Income Limits
- Increase for ST Scholarships: The Ministry of Tribal Affairs plans to raise the parental income limit for post and pre-matric ST scholarships from ₹2.5 lakh to ₹4.5 lakh. This applies to students from grades IX onwards, and in some cases, grades I–X.
- Possible Changes for SC, OBC, and DNT Scholarships: The Social Justice Ministry is considering revising income limits for SC, OBC, and DNT students in both school and college scholarship schemes. The goal is to improve access across all sections.
Structure and Coverage of Current Schemes
- Central Sponsorship Model: Scholarships for SCs, STs, and OBCs operate under a centrally sponsored scheme. The Union and State governments share costs in a 60:40 ratio, with a 90:10 ratio for northeast States.
- Post and Pre-Matric Criteria: Post-matric scholarships are for students after Class X. Pre-matric schemes cover Class IX–X, but for SCs in hazardous occupations, coverage is from Class I–X. Current eligibility requires parental income below ₹2.5 lakh.
Budgetary Allocation
- Social Justice Ministry Share: In FY 2025-26, centrally sponsored scholarship schemes for SCs, OBCs, EBCs, and DNTs formed 66.7% of the ₹13,611 crore Social Justice Department budget.
- Tribal Affairs Ministry Share: For the same fiscal year, schemes for ST students accounted for 18.6% of the ₹14,925.81 crore allocation of the Tribal Affairs Ministry.
Declining Beneficiary Numbers
- Reductions for SC Beneficiaries: From 2020-21 to 2024-25, pre-matric SC scholarship beneficiaries dropped by 30.63%, and post-matric beneficiaries by 4.22%.
- Drops Among OBC, EBC, and DNT Groups: Between 2021-22 and 2023-24, pre-matric beneficiaries fell from 58.62 lakh to about 20.25 lakh. Post-matric numbers declined from 43.34 lakh to 38.42 lakh.
- ST Beneficiary Declines: In the same period, ST pre-matric recipients dropped by 4.63 lakh, and post-matric recipients by 3.52 lakh.
Parliamentary Panel Recommendations
- Call for Higher Income Limits: The Parliamentary Committee on Welfare of OBCs urged doubling the current income limit for OBC pre and post-matric scholarships. It also suggested a “suitable rise” for top-class scholarships.
- Expanding Pre-Matric Coverage: The panel recommended extending OBC pre-matric scholarships from Class V onwards, instead of starting at Class IX.
- ST Scholarship Revisions: Another committee reviewing Tribal Affairs and Social Justice ministries recommended raising parental income limits for ST scholarships.
Rationale for Changes
- Barriers Due to Low Income Limits: Committees observed that the ₹2.5 lakh cap excludes many deserving families, limiting access despite available funds.
- Goal of Wider Access: Raising income limits can increase coverage, helping more students from marginalised groups and potentially reversing the decline in beneficiaries.
Question for practice:
Examine the reasons and recommendations for revising income limits of scholarships for marginalised communities.
