Govt scholarship not sufficient to meet present-day expenditure: Parliamentary panel

New Delhi: A parliamentary standing committee has noted that the annual scholarship granted for pursuing education is not sufficient to meet the present-day expenditure and recommended that its quantum be periodically reviewed to contain the inflation.

In its latest report on the Demands for Grants for 2025-26, the Standing Committee on Social Justice and Empowerment has urged the Department of Social Justice and Empowerment to review the scholarship amounts in collaboration with the Ministry of Education and other stakeholders.

The panel, which tabled its report in Parliament on Monday, asked the Department of Social Justice and Empowerment to review the annual scholarship amount granted to each student pursuing various courses along with the Ministry of Education and other stakeholders to achieve the envisaged objectives of the various scholarship schemes of the department.

The committee is of the opinion that the annual scholarship granted to a student for pursuing education is not sufficient to meet the present-day expenditure required to get proper and quality education, the report said.

"The committee would like to recommend that the quantum of scholarship granted to a student under each scheme should be periodically reviewed to contain the inflation so that the scheme is more fruitful," it said.

The committee also observed discrepancies between the projected requirements and the actual allocations across multiple welfare programmes.

Despite a budgetary allocation of Rs 14,164.42 crore for the fiscal 2025-26, several schemes remain underfunded, limiting their reach and impact.

The panel particularly emphasised the need to improve the efficiency of fund utilisation, highlighting that large sums of money remain unspent due to procedural delays and administrative inefficiencies.

It criticised the delayed submission of proposals and utilisation certificates by the state governments resulting in the accumulation of unspent funds in the Single Nodal Agency (SNA) accounts.

As of February, the total unspent balance in SNA accounts stood at Rs 2,779.32 crore, down from Rs 5,055.93 crore the previous year.

The committee urged the ministry to work closely with the states to expedite the completion of necessary formalities, enabling quicker fund disbursement.

Additionally, the report highlighted a lack of transparency and coordination between the ministry and implementing agencies.

It expressed concern that the Ministry of Social Justice and Empowerment's heavy reliance on the state governments for execution has led to inconsistent implementation and delays in delivering benefits to the intended recipients.

The panel called for a more robust monitoring mechanism to track fund disbursement and ensure better accountability.

The committee further noted that while the budgetary allocation increased marginally over the years, the funds have not been proportionately utilised for critical welfare programmes.

It urged the ministry to adopt a proactive approach by improving data collection, streamlining administrative processes and strengthening oversight mechanisms to ensure timely and effective delivery of welfare benefits.

The committee acknowledged the department's expenditure of Rs 6,410.09 crore in 2022-23 and Rs 7,830.26 crore in 2023-24 on various educational schemes.

The report questioned recurring issues of under-utilisation of funds across various schemes.

The department spent only Rs 3,403.51 crore on educational scholarship schemes until February 2025.

The panel also criticised the frequent changes in guidelines for key initiatives like PM-AJAY, SHRESHTA, NAMASTE and PM-VISVAS, and urged the Social Justice Department to consult stakeholders before implementing revisions.

One of the major concerns raised was the planned discontinuation of the Venture Capital Fund (VCF) for Scheduled Castes (SCs) and Other Backward Classes (OBCs) by March 31.

The committee pointed to an evaluation study by the Indian Institute of Public Administration (IIPA), which recommended the scheme's continuation due to its distinct role in supporting first-generation entrepreneurs.

The panel expressed disappointment that key issues such as delays in security clearances and post-loan support were not addressed before deciding to phase out the scheme.

It urged the department to ensure full disbursement of sanctioned loans to entrepreneurs before the scheme ends and sought updates on pending proposals.

The committee also reviewed the Scheme for Residential Education for Students in High Schools in Targeted Areas (SHRESHTA), which supports high-quality education for SC students and found that 144 private residential schools were selected to accommodate 3,000 students through the National Testing Agency (NTA) examination during 2023-24 and 2024-25.

The report called for greater collaboration between the Centre and state governments to address implementation gaps. It recommended setting up dedicated project monitoring units to track the progress of key schemes and resolve administrative hurdles swiftly.

The panel urged the department to finalise new guidelines for the proposed replacement of the venture capital fund and to ensure comprehensive stakeholder consultations to prevent future implementation delays.