New Delhi- This year's budget is the eighth presentation of the current Finance Minister of India, and has several interesting modifications from the union budget for 2025–2026.

The National Campaign on Dalit Human Rights (NCDHR) conducts a comprehensive analysis of the Dalit-Tribal budget each February. This year's analysis express satisfaction on increase in budget allocation for the marginalised communities, however, also points out the discrepancies in it.

According to the Economic Survey 2024-25, India's economy is predicted to grow at a rate of 6.3-6.8% in the upcoming fiscal year and reach a level of Rs 324.11 Lakh crore by the end of FY 2024-25, making it one of the fastest and largest growing economies in the world. In addition to serving as the country's economic road plan, the union budget also shows the government's political will to implement the socioeconomic justice that the Indian constitution guarantees.

It is great to see that the total budget for the SCs and STs has increased to Rs 1,68,478.38 Cr for SCs and Rs 1,29,249.75 Cr for STs, however several direct benefiting schemes lack sufficient allocation and is disappointing to say the least. Out of the total allocation only about 3.9% for SCs and  3.3 % is targeted allocation, the rest is mostly for schemes that have no relevance to the development of SCs. Many effective and targeted schemes like National Safai Karamchari Finance and Development Corporation, National Scheduled Caste Finance and Development Corporation, and Venture Capital Fund for SCs and OBCs, are systematically underfunded in this budget cycle.

The total allocation under NAMASTE scheme is Rs 130 Cr and the total allocation for the National Safai Karmachari Finance and Development corporation is Rs 0.01 Cr. This amount is hardly sufficient to ensure the total elimination of manual scavenging. However, the Finance Minister has announced a new scheme providing term loans of up to Rs 2 crore to first-time borrowers, with a focus on women and SC/ST communities.

In terms of GDP expenditure for different sectoral development, India spends 4.6% of GDP on education and about 1.35% of GDP is spent on public health, which is extremely low. Restructuring India's healthcare system is crucial; to bridge the healthcare disparities it is important to create healthcare hubs in areas like smaller cities and villages which will help meet local health needs and promote development.

The allocation of funds to general schemes continues to divert resources, leaving SC and ST communities behind in education, land ownership, and protection against communal violence.  The following are a few Schemes that are not relevant to the SC or ST people and which have no impact on bridging the development gap between SC STs and the rest of the society.  Non-Targeted schemes: 1) Urea Subsidy Payment for Indigenous Urea and Import of Urea: Rs 10,113 Cr under SC Budget and Rs 5,239 Cr under ST Budget. 2) Nutrient-Based Subsidy Payment for Indigenous P and K Fertilizers and Imported P and K Fertilizers: Rs 4067 Cr under SC Budget and Rs 2,107 Cr under ST Budget to name a few. Huge amount of money from the AWSC and AWST are allocated for the general schemes such as PDS, Ayushman Bharat and Jal Jeewan Mission, Infrastructures etc yet. Overall, the amount allocated under obsolete schemes is Rs 46094 cr, Relevant Schemes are allocated a total of Rs 110908 Cr and General schemes are funded a total of Rs 117633 cr.

This is a budget for a certain class of people, the poor and the disenfranchised do not figure as priority, the schemes and programs that could actually have an impact on the ground are given negligible allocations thereby missing the opportunity to ensure development for the SCs and STs says Paul Divakar Namala, Convenor, Global Forum of Communities Discriminated on Work and Descent.

If one were to examine the allocation for the development of SC and ST women, it becomes evident that only Rs 18852.23 Cr. has been allocated to SC women and Rs 9431.21Cr to ST women—an amount that is deeply discouraging. Given the alarming rise in violence against Dalit women year after year, only about Rs 138 Crs is allocated to implement the SC ST Prevention of Atrocities Act.  There is an increase in, allocation for the Post Matric Scheme for SC girls is Rs. 3116.40 Cr while Rs 738.80 Cr for ST girls. However, if we see the allocation for Pre-matric scholarship, for the SC girls there is an allocation of just Rs 283.20 Cr while for ST girls it is Rs 94.14 Cr.

One of the schemes that is significant for higher education, the National Overseas Scholarship (NOS) Scheme faces significant challenges in its implementation, including financial hardships for students due to delayed disbursements, barriers for disabled students, and issues with online processes, leading to frustration and dissatisfaction among beneficiaries.  The allocation for the SCs has increased from Rs 95 Cr in FY 2024-25 to Rs 130 Cr in FY 2025-26 and we observe that the allocation for the STs has decreased from Rs 6.00 Cr in FY 2024-25 to Rs 0.01 Cr in FY 2025-26, this is really a worrying trend as this allocation has been completely reduced for STs, Beena Pallical, General Secretary, NCDHR.

In terms of higher education funding for SC and ST, the Department of Higher Education has allotted Rs 4,306.32 Cr under AWSC and Rs 2,195.37 Cr under AWST, however many of these initiatives are not targeted at the development of SC and ST students.

The Finance Minister highlighted agriculture, micro, small and medium enterprises (MSMEs), investment, and export promotion as important for the economy. However, the budget does not focus on developing Scheduled Castes and Scheduled Tribes. We are hoping that in the revised budget some of these concerns are addressed.

The Scheduled Castes Scheduled Tribes would like know

1. Why are SCs and STs excluded from the 'Sabka Vikas' agenda, with their needs neglected in the pursuit of development?

2. Why are Rs 46,094 Cr allocated to schemes that deliberately exclude SCs and STs, denying any direct benefits to Dalits and Adivasis?

3. Why a massive amount of Rs15,430Cr of funds from ST budget is allocated towards construction of roads and highways?

4. Why the schemes for ‘Gyan, Garib, Yuva, Annadata, and Nari Shakti’ focusing on youth and women towards skills, eliminating poverty,  agriculture and women exclude SC and ST in the budget? 

5. Why is the Ministry of Higher Education allocating only Rs.160Cr for direct benefit schemes to SC and STs while denying Rs 6,342 Cr which is 98% of the of the total Ministry’s SC/ST budget, excluding SCs and STs from colleges and universities and other technical and higher education?

6. Why is there a mere 1.79% of the total allocation of SC/ST budgets deliberately excluding 25% of women who happen to be SC/STs, Despite the 'Nari Shakti - Women Power’

7. Why is only Rs.463 Cr allotted which is a mere 0.0016% of the total SC/ST budget allocated towards protection of SC/STs while there are at least 67,646 incidents of crimes against SC/ST.