Traditional graph-based semi-supervised learning (SSL) approaches are not suited for massive data and large label scenarios since they scale linearly with the number of edges |E| and distinct labels m. To deal with the large label size problem, recent works propose sketch-based methods to approximate the label distribution per node thereby achieving a space reduction from O(m) to O(log m), under certain conditions. In this paper, we present a novel streaming graph-based SSL approximation that effectively captures the sparsity of the label distribution and further reduces the space complexity per node to O(1). We also provide a distributed version of the algorithm that scales well to large data sizes. Experiments on real-world datasets demonstrate that the new method achieves better performance than existing state-of-the-art algorithms with significant reduction in memory footprint. Finally, we propose a robust graph augmentation strategy using unsupervised deep learning architectures that yields further significant quality gains for SSL in natural language applications.