This article is from Nov 27, 2020

Central government stops scholarships for 60 lakh students!

The Economic Times reports that more than 60 lakh SC student’s who studying in Classes 11 and 12 in more than 14 states scholarship funding have been stopped by the central government under the 2017 formula.

The problem in providing scholarships to the Scheduled Castes school students has been pending before the Union Cabinet for more than a year. In this regard, Prime Minister Narendra Modi and the Prime Minister’s Office discussed in detail in early November.

At a meeting held in early November, it was announced that eligible high school students from the minority community will receive 100% central government’s scholarships to help them complete their schooling without hindrance and 75% of the list Tribes (ST) students will receive central government’s scholarship.

However, more than 60 lakh high school students in the Scheduled Castes are facing a financial crisis as only 10% of the scholarship funding is received from the central government. As a result, state-to-state scholarships are beginning to be phased out and have been disbursed in very small amounts since 2017-18.

The All India Post Matric Scholarship Scheme will provide financial assistance of Rs. 18,000 / – per annum to 11th, 12th class students (SC). The plan is to follow a central-state funding system of 60:40.

However, the Economic Times reports that a meeting of the Prime Minister’s Office announced how the “obliged liability” financial formula of the Union Finance Ministry in the 2017-18 financial year imposed a 90% burden on the state government. In addition, the 60% funding to be provided by the Central Government for this project has been reduced to 10% during the 12th Finance Commission. It is currently reported that the burden on states has been reduced from 10% to 90%.

States including Telangana, Maharashtra, Punjab, Haryana, Bihar, Jharkhand, West Bengal, Uttarakhand and Himachal Pradesh have repeatedly raised the issue with the Ministry of Social Justice and Empowerment.

60:40 The Ministry of Social Justice has been asked by the Ministry of Finance to release funds for hostels, maintenance and tuition to reactivate the funding system.

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