The Union Budget for 2026–27 has triggered concern among the minorities following steep reductions in several key scholarship schemes aimed at minority students, particularly those from economically weaker Muslim communities.
A report by the SPECT Research Association highlights significant declines in funding for major educational support programmes, despite a marginal overall increase in the allocation for minority affairs. “While the overall allocation for minority affairs shows a marginal increase, a closer look at the details reveals steep cuts to several key scholarships and financial aid programmes that support minority students,” says the SPECT report.
| Scheme Name/ Expenditure Head | BE 2024-25 (In Rs. Cr.) | BE 2025-26 (In Rs. Cr.) | BE 2026-27 (In Rs. Cr.) |
| Merit-cum-Means Scholarship for professional and technicalcourses | 33.80 | 7.34 | 0.06 |
| Maulana Azad NationalFellowship for MinorityStudents | 45 | 42.84 | 36.14 |
Source: SPECT Research Association
Analysts warn that the pattern of cuts and persistent underutilisation of funds could severely affect access to education for thousands of students.
Merit-cum-Means Scholarship Faces Near Elimination
The Merit-cum-Means Scholarship, which supports minority students pursuing professional and technical courses such as engineering, medicine, and management, has witnessed a dramatic funding collapse over the past three years.
The scheme received ₹33.80 crore in 2024-25. This was reduced to ₹7.34 crore in 2025-26 – a nearly 78 percent drop – and further slashed to just ₹0.06 crore in the 2026-27 budget, marking an almost 99 percent cut from its earlier allocation.
The scholarship has traditionally served as a crucial lifeline for students from low-income minority families studying in expensive professional institutions, particularly in urban centres. Experts warn that the drastic reduction could force students to depend on education loans, take up part-time work that affects academic performance, or even discontinue their studies.
Maulana Azad National Fellowship Sees Continued Decline
The Maulana Azad National Fellowship (MANF), which provides financial assistance to minority students pursuing MPhil and PhD research, has also seen a steady reduction in funding.The allocation declined from ₹45 crore in 2024-25 to ₹42.84 crore in 2025-26, and further to ₹36.14 crore in 2026-27.
Academics say research degrees require sustained financial backing over several years, and shrinking fellowship funds may discourage minority scholars from entering doctoral programmes. Reduced participation could, in the long term, affect diversity in academia and knowledge production.
Pre- and Post-Matric Scholarships: Nominal Rise, Larger Context of Cuts
The Pre-Matric and Post-Matric scholarship schemes show nominal increases this year compared to the immediate previous budget estimate, but remain sharply lower than allocations in earlier years.
Under the Pre-Matric Scholarship scheme, the allocation rose marginally from ₹195.70 crore in 2025-26 (BE) to ₹198 crore in 2026-27. However, this remains significantly lower than ₹326.16 crore allocated in 2024-25.
Similarly, the Post-Matric Scholarship allocation increased from ₹413.99 crore in 2025–26 to ₹581 crore this year. Yet, this is a steep fall from ₹1,145.38 crore in 2024-25.
Policy observers note that while the headline figures show modest recovery, they follow a major reduction in the previous financial year.
Chronic Underutilisation Raises Questions
Parliamentary disclosures and ministry data over the past three years reveal substantial underutilisation of scholarship funds.
In 2022-23, only about 27 percent of the total scholarship allocation was reportedly spent. In 2023-24, utilisation was even lower, with around 8.5 percent of Post-Matric funds and under 24 percent of Pre-Matric funds reportedly used.
In 2024–25, despite ₹326.16 crore being allocated for Pre-Matric scholarships, only ₹1.55 crore was reportedly utilised. For Post-Matric scholarships, ₹1,145.38 crore was allocated, but only ₹5.31 crore was spent.
Experts suggest that persistent underutilisation often leads to reduced allocations in subsequent budgets, creating a cycle that further limits educational access for eligible students.
Madrasa Education Scheme Receives Zero Allocation
The most drastic cut has been observed in funding for madrasas under the Scheme for Providing Education in Madrasas/Minorities (SPEMM).The scheme had an allocation of around ₹174 crore in 2021-22. It was reduced to ₹30 crore in 2022-23, then to ₹5 crore in 2023-24, and further to ₹0.01 crore in both 2024-25 and 2025-26. In the 2026-27 budget, the scheme has received zero allocation for the first time.
Educationists say madrasas often provide foundational literacy and numeracy, alongside religious instruction, to students from low-income households. The complete withdrawal of funding may affect teacher salaries, infrastructure maintenance, and access to learning materials, potentially limiting enrolment and retention, especially among girls and rural students.
Broader Implications
The report argues that reductions in critical scholarship and educational support schemes risk limiting minority representation in professional education, research, and higher-skilled employment sectors.
While overall allocations for minority affairs may appear stable on paper, the detailed breakdown suggests significant contraction in direct educational support. Observers caution that sustained cuts, coupled with low fund utilisation, could widen educational disparities and restrict upward mobility for marginalised minority communities.
“The continual slashing of budgetary allocations for minority communities, especially Muslim students, exposes the government’s systemic bias and represents a deliberate attempt to obstruct the educational and social development of an already marginalised community,” concludes the SPECT report.