The Congress has accused the Union Budget 2026 of diverting, diluting, and under-utilizing funds meant for Scheduled Castes (SCs) and Scheduled Tribes (STs), labeling it a “casteist betrayal” of Dalits and Adivasis. Rajendra Pal Gautam and Vikrant Bhuria, leaders of the Congress, highlighted that while the government projected allocations of Rs. 1.96 lakh crore for SCs and Rs. 1.41 lakh crore for STs, only a fraction of these amounts were actually earmarked for welfare schemes targeting these communities. They claimed that a significant portion of the funds had been merged into generic programs that do not address caste- and tribe-based exclusion.
The Congress leaders pointed out that only 41% of the schemes under SC–ST allocations were deemed relevant, with 42% being general schemes and 17% considered obsolete. They criticized the focus on optics rather than outcomes, stating that Dalit–Adivasi welfare had been reduced to a mere bookkeeping exercise. Additionally, they raised concerns about the declining utilization of SC–ST funds, noting a consistent decrease in spending from FY 2020-21 to FY 2024–25, with only about 75% of SC funds being utilized in 2024–25, primarily through non-targeted channels.
Gautam and Bhuria highlighted cuts in the National Overseas Scholarship program, where despite 106 students being selected, only 40 received scholarships due to funding constraints, leaving 66 SC/ST/OBC students without support. They also criticized the allocation of funds from the SC Sub Plan (SCSP) and Tribal Sub Plan (TSP) to various non-targeted schemes, emphasizing that these allocations primarily benefited dominant communities rather than marginalized groups. The leaders urged the government to enact a law to safeguard SCSP and TSP funds, ensure proportional allocations based on population share, and establish a monitoring mechanism to prevent misuse of funds intended for SCs and STs.
In the education sector, Gautam and Bhuria raised concerns about limited allocations for student-centric schemes like ‘Top Class Education’ and ‘National Means-cum-Merit Scholarship’, while significant amounts from the SC Sub-Plan and Tribal Sub-Plan funds were directed to institutions such as IITs, NITs, and central universities. They also highlighted the prevalence of caste discrimination on campuses, emphasizing the need for a central law to protect the dignity and safety of SC-ST students.
