FINANCIAL PROBLEMS IN HIGHER EDUCATION (REQUIREMENT OF FUNDS FOR THE YEARS 1995-2000)
The higher education system in India has been under considerable stress in the past decade due to challenges offered by an increase in numbers on the one hand and the need to maintain standards on the other.
In terms of absolute numbers, there has been a consistent increase in enrolment as well as in the number of institutions over the years.
1983-84 1992-93
Universities 139 187
Colleges 5246 7958
Students Enrolment 33.08 48.05
lakhs lakhs
To cope with this pressure of numbers it is quite natural that investments must be made to ensure that the infrastructure and facilities available to maintain standards of education are not diluted. Unfortunately this has not happened due to the constraint of financial resources.
Section 12 of the UGC Act provides that the Commission shall in consultation with the universities concerned take all such steps as it may think fit for the promotion and coordination of universities education and for maintenance of standards in teaching, examination and research. UGC provides financial assistance (Plan & Non-Plan) to universities, colleges, State Universities, Research & Studies in Emerging and inter-
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disciplinary areas and inter-university & information centres, etc.
Upto 1990-91 the non-plan grants to the UGC were available more or less as per- requirement and UGC was able to disburse to the Central Universities- Deemed Universities, Delhi Colleges the amount recommended by their Finance Committees for maintenance grant. However, the non-plan grant to the UGC since 1990-91 has stopped increasing. The budgeted figures of non-plan and plan grant to the UGC from the Government are as below:
NON-PLAN PLAN*
Year Budget Amount Grant received
(Rs. in crores)
1990-91 238.20 244.20 139.00
1991-92 238.20 260.03 174.36
1992-93 247.09 308.09 159.14
1993-94 288.82 336.95 159.50
* This amount includes Plan allocations for General Plan, Programme to strengthen Scientific Research and Engg. & Tech.
The substance of the above details reveals that while the increase in number of students and institutions continues, the demand created by them, is nowhere near matched by corresponding investments in infrastructure, equipment, etc. On the non-plan side where the major involvement is of the Central Government and the UGC in respect of Central Universities, some deemed universities and the Colleges of Delhi, there is virtually no real increase of allocation from year to year.
In the last three years the increase in grants (plan and non- plan) from the Government has not kept pace with the increase in requirement of Higher Education Institutions due to increase in salary/allowances, increments and additional DA
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instalments and sharp increase in cost of maintenance and consumables for non-plan items mainly books,journals and chemicals, particularly which are imported.Due to these reasons, the net availability of support from UGC to Higher Education has been rather inadequate.
The explosive growth in higher education system has caused serious problems and challenges for administration. Growth has taken place without corresponding increase in the infrastructural facilities and the existing institutions/ departments and colleges are already under heavy stress in meeting the ever increasing demand of numbers. This has presented problems of new dimensions to planning and management of the higher education.
The University and college administrations are caught up, at all levels, in day-to-day problem solving due to resource crunch. They are existing on hand to mouth basis.
Over the last two years various distinguished committees have deliberated on this issue.
A High-Powered Committee under the Chairmanship of Justice Dr. K. Punnayya was set up by the UGC in 1992 to examine the present financial situation in regard to central universities, deemed universities and colleges affiliated to Delhi University and BHU. The present system of grant and the manner in which plan and non-plan grants should be determined, the rationale norms that should be adopted and the pattern and system of expenditure of institutions fully funded by UGC has been examined by this Committee.
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The Committee which submitted its report to the UGC in December, 1993 has observed that the present system of financial assistance to universities and institutions is decades old. The Committee has broadly recommended following:
a) That State funding must continue to be an essential and mandatory requirement to support higher education.
b) universities must also be encouraged to supplement the State efforts by raising their own resources.
C) There is no denying, that while primary education is fundamental to the nation, higher education determines its economic and technological progress. While it is mandatory that the nation achieves universal elementary education and total literacy, at the same time it cannot afford to neglect and, relegate to a neglected position our quest to achieve global standards in higher education. The Committee deprecates the tendency which views education in a truncated fashion and sets one sector against another. The advancement of quality primary and secondary education itself depends upon the quality of higher education.
d) The tuition fees have remained the same for a very long time inspite of the costs of all services going up. This needs to be revised upward with immediate effect.
e) Any additional resources generated by the University/ institutions may be kept in separate fund to be utilised for furtherance of the objectives of the universities.
In this connection the Government has already agreed
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not to adjust the resources generated by the universities, etc. in the grants being disbursed to universities. Accordingly, UGC has issued instructions to the universities.
f) 100% income tax concessions in all endowments and contributions made to the Universities.
Government of India has alreadhy issued instructions to this effect allowing income-tax exemption.
g) The basis of funding of central universities may be linked to its specific objectives and to its pursuit of excellence, innovativeness, all. India character and ability to provide access to weaker sections.
h) The unit cost system of calculation of eligibility for grants should replace the existing incremental system which may be retained till the end of the current five year plan.
(i) From the Ninth Plan onwards grants should be related to unit cost of activities as a rule except for new programmes.
Once the Punnayya Committee recommendations are accepted from the 9th Plan onwards, it is expected that the situation will somewhat improve.
The Government of India has announced appointment of Pay Commission for Central Government employees which, inter alia, will look into the revision of pay scales and other allowances includes retirement benefits. On the similar lines, a pay commission for university and college teachers is being appointed. As a result, there is possibility of increased
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financial liability of UGC which is not reflected.
However, in the next five years from 1995-2000 a solution has to be found. The only remedy appears to be an increase in the non-plan (maintenance grant) of about 15 per cent over the preceding year to take into the increase in DA, increments promotions, pension benefits liability and other essential requirements to meet the demand of increasing number of students and institutions and recurring costs of higher education. Based on above formula the requirement of Non-Plan maintenance grant for UGC for the year 1995 to 2000 would be Rs. 2880.17 crore (details in Appendix - I).
Repercussions on non-plan funds on account of transfer of plan
posts expenditure to non-plan expenditure during 1997-2000 In each plan period, UGC provides general development grant to eligible universities, institutions deemed to be universities and colleges for acquiring certain infrastructural facilities like academic and administrative, buildings, hostels, books and journals, additional teaching staff in specific disciplines, which are otherwise not available to such institutions from the State Government/bodies responsible to maintain these, so as to promote quality of teaching.
As UGC provides teaching and non-teaching position to central universities, deemed universities and Delhi colleges, 100% funded by it, in the beginning of each plan period, these posts after having been supported out of plan funds from the plan period are finally transferred to non-plan budget of respective institution as they are of recurring nature. On an average approximately expenditure as given below would have to be added
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to non-plan funds requirement for the year 1997-2000 after completion of respective plan period.
(Rs. in lakhs)
1. Central universities 597.96
2. Deemed universities 219.12
* 3. Mass Media Centres 120.00
* 4. Inter University Centres 120.00
5. Academic Staff Colleges (Rs.200 lakh p.a.) 600.00
6. Provision for transfer of funding from Plan 2000.00
to non-plan in r/o two new central universi-
ties (Assam & Tejpur) opened during 1993-94.
7. Provision for transfer of funding from Plan 800.00
to non-plan in r/o four new universities which
have been announced by the Government of india.
Total.. 4457.08
* At present MMCs & IUCs are being funded out of Plan grant. In case final decision is taken for transfer of funding of MMC & IUC out of non-plan grants, we shall need Rs. 240 lakh additional amount as shown at S.No.3&4 above.
An annual provision of Rs. 10 crore is made for the implementation of Academic Staff College - teachers training and resource person hon., TA/DA, etc. This includes Rs. 2 crore for recurring staff salary (all posts sanctioned to an ASC) and the remaining for other purposes such as training of teachers, etc.
Thus an amount of Rs. 2 crore per annum would be required out of the non-plan funds for meeting the recurring expenditure on staff salary from the year 1997-98 to 1999-2000.
During 1993-94 two new central universities, i.e, Assam and Tezpur universities have been opened. A provision of Rs.5 crore each has been proposed in the current year out of the Plan funds out of which an amount of Rs.1.80 crore per annum is on account of recurring expenditure on salary and other miscellaneous expenditure of teaching and non-teaching staff. it is proposed to transfer this provision of out the Plan funds to
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non-plan funds after completion of current 8th Five Year Plan. Thus an amount of Rs.10 crore approximately (based on 15% increase on 1.80 crore per annum, i.e. BE 1994-95) would be required for each university for the period from 1997-2000.
New Universities announced by the Government of India The Government of India have recently announced establishment of four more new universities, one in North East, and others are Hindi, Urdu and Ambedkar Universities. It is presumed that initially for five years, i.e., from 1994-95 to 1998-99, the funding for these universities would be out of the plan funds, after which the funding of the recurring expenditure on teaching and non-teaching and other maintenance expenditure, would be transferred to non-plan funds. Therefore, an additional amount of Rs.8 crore (Rs.2 crore each) for these four new universities would be required during the year 1999- 2000.
Thus the total requirement of our non-plan funds for the year 1995-2000 would be Rs.2924.74 crore (Rs.2880.17 crore as shown in Appendix-I + 44.57 crore as shown above) after taking into account the transfer of liability from 8th Five Year Plan for teaching and non- teaching posts and financial requirement of Academic Staff College to non-plan funds.
NOTE:
The repercussions on the Non-Plan funds on account of transfer of Plan posts expenditure to Non-Plan have been worked out on the presumption that the transfer would take place after completion of the current 8th Five Year Plan, i.e., after 1997. In case the decision is taken to transfer the funding from Plan
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to Non-Plan after 1995, then the increase given at page 7 would undergo a change as mentioned below:
(Rs. in lakhs)
1. Central universities 996.60
2. Deemed universities 365.20
* 3. Mass Media Centres 200.00
* 4. Inter University Centres 200.00
5. Academic Staff Colleges 1000.00
6. Provision for transfer of funding from Plan 2000.00
to non-plan in r/o two new central universi-
ties (Assam & Tejpur) opened during 1993-94.
7. Provision for transfer of funding from Plan 800.00
to non-plan in r/o four new universities which
have been announced by the Government of india.
5561.80
Thus the total requirements of our non-Plan funds for the years 1995- 2000 would be Rs. 2935.79 crore (Rs. 2880.17 crore as shown in appendix-I + 55.62 crores as shown above after taking into account the transfer of liability from 8th Five Year Plan for teaching and non- teaching posts and financial requirements of, Academic Staff Colleges to non-Plan funds.
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APPENDIX - I
Non-Plan Funds requirement for the period 1995-2000
(Rs. in lakhs)
S. Year Budget Revised % increase with
No. Estimates' Estimates reference to RE
1. 1990-91 22,400 24,420
2. 1991-92 23,820 26,003 6.48
3. 1992-93 28,827 30,809 18.48
4. 1993-94 28,882 33,695 9.37
5. 1994-95 32,300 37,145 10.24
(proposed RE at
15% increase)
1,52,072 44.57
Average increase: 11.14%
Requirements for 1995-2000
(Rs. in lakhs)
S.No. Year Fund Requirement
(@ 15% increase over
1994-95 proposed RE)
1. 1995-96 42,717
2. 1996-97 49,125
3. 1997-98 56,494
4. 1998-99 64,968
5. 1999-2000 74,713
Total.. 2,88,017
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