Parliament Panel Calls for Scholarship Review Amid Rising Costs

The Parliamentary Standing Committee on Social Justice and Empowerment has raised concerns about the inadequacy of government scholarships in meeting the rising costs of education and urged for an immediate review of the current schemes. The panel, in its latest report on the Demands for Grants for 2025-26, has called for periodic adjustments to scholarship amounts in line with inflation, ensuring they remain sufficient for students to pursue quality education.

Parliament Panel Calls for Urgent Review of Scholarships Amid Rising Costs

Call for a Periodic Review of Scholarship Amounts

The committee expressed its belief that the current annual scholarships granted to students are insufficient to cover the growing financial requirements of modern education. It highlighted the importance of regular reviews of scholarship amounts, in collaboration with the Ministry of Education and other stakeholders, to ensure that the funds align with inflation rates and the evolving financial landscape.

"The committee recommends that the quantum of scholarships provided to students under various schemes should be periodically reviewed and adjusted to account for inflation. This would make the schemes more effective and beneficial for the students," the report stated.

Concerns Over Underfunded Welfare Programmes

Alongside the scholarship issues, the report also flagged discrepancies between projected needs and actual allocations across several welfare initiatives. With a budget of Rs 14,164.42 crore for the fiscal year 2025-26, the committee noted that multiple schemes continue to face underfunding, thereby limiting their reach and effectiveness. Despite increased budgetary allocations over the years, many critical programs are not fully utilizing the available funds.

Efficiency and Utilization of Funds Under Scrutiny

The committee further emphasized the need to enhance the efficiency of fund utilization within welfare schemes. A significant amount of allocated funds remained unspent due to procedural delays and inefficiencies at the administrative level. As of February 2025, the unspent balance in the Single Nodal Agency (SNA) accounts was Rs 2,779.32 crore, down from Rs 5,055.93 crore the previous year.

The committee recommended that the Ministry of Social Justice and Empowerment work closely with state governments to expedite the processing of necessary formalities for faster fund disbursement. It also urged better coordination and transparency between the Ministry and implementing agencies to ensure the timely delivery of benefits.

Delayed Implementation and Lack of Monitoring Mechanisms

In its report, the committee also criticized the slow pace of scheme implementation due to the heavy reliance on state governments. The panel called for the establishment of more robust monitoring mechanisms to track fund disbursement and improve accountability, ensuring that resources are utilized effectively for the welfare of the target groups.

The report acknowledged that although the Ministry’s budget allocation had increased slightly over the years, the funds had not been proportionately used for key welfare programmes. With concerns about recurring under-utilization, the committee recommended the adoption of a more proactive approach by improving data collection, simplifying administrative processes, and strengthening oversight mechanisms.

Concerns Over the Discontinuation of Key Schemes

A significant issue raised by the committee was the planned discontinuation of the Venture Capital Fund (VCF) for Scheduled Castes (SCs) and Other Backward Classes (OBCs) by the end of the fiscal year. Despite an evaluation study by the Indian Institute of Public Administration (IIPA) recommending its continuation, the committee expressed disappointment that the Ministry had decided to phase out the scheme without addressing concerns regarding security clearances and post-loan support.

The panel urged the Ministry to ensure that all pending loans were fully disbursed before phasing out the scheme and requested updates on outstanding proposals related to the VCF.

Recommendations for Better Collaboration and Monitoring

The committee also reviewed the Scheme for Residential Education for Students in High Schools in Targeted Areas (SHRESHTA), aimed at providing quality education for SC students. It noted that 144 private residential schools were selected for the 2023-24 and 2024-25 academic years, catering to 3,000 students. However, the report highlighted the need for greater collaboration between the Centre and state governments to address existing implementation gaps.

In response to the ongoing administrative hurdles, the panel recommended the establishment of dedicated project monitoring units to resolve issues swiftly and ensure the successful execution of key welfare schemes.

Conclusion

The Parliamentary Standing Committee’s report underscores the urgent need for a comprehensive review of government scholarships and welfare programs, especially in the context of rising educational costs. By advocating for regular adjustments to scholarship amounts and better utilization of resources, the committee aims to ensure that the government’s efforts to support students are both effective and aligned with current financial realities.