Pending payment of salary arrears to teachers as per the revised pay scale of the University Grants Commission (UGC) would hit hard the budget of Mangalore University for 2012-13.

According to the budget presented by the Vice-Chancellor, T.C. Shivashankara Murthy, at the Academic Council meeting on Friday, the university would have to pay the salary arrears of 51 months to teachers. Of the expenditure estimated for 2012-13, the university would have to spend 58 per cent of the total receipts for paying salary, including arrears. It would spend 12 per cent of the receipts for administrative purposes and 8 per cent on holding examinations. The university has reserved only 15.70 per cent of the receipts for development works.

Prof. Murthy presented Rs. 6.29-crore deficit budget.

The receipts has been estimated at Rs. 139.64 crore while the expenditure was at 145.93 crore.

With regard to development works, the budget has focused on improving existing infrastructure. The university has reserved Rs. 16.35 crore for development works.

It has reserved Rs. 75 lakh for constructing a Pareeksha Bhawan (which was an old proposal) and Rs. 2 crore for completing Mangala auditorium with associated facilities including seminar halls.

It has reserved Rs. 2 crore for developing roads on the campus, Rs. 40 lakh for constructing an additional floor for men's hostel building, Rs. 40 lakh for modernising the administrative building, Rs. 30 lakh for extending library building, and Rs. 75 lakh for completing the building to house all its study centres.

It has reserved Rs. 50 lakh for extending the business administration building, Rs. 50 lakh for repairing library building, Rs. 1 crore for completing an outdoor stadium, Rs. 20 lakh as research grant for teachers. It had reserved Rs. 6 crore for constructing buildings at its upcoming postgraduate centre at Chikkaluvaru in Kodagu district.

Prof. Murthy said that the university would meet the deficit of Rs. 6.29 crore from the additional government grant expected. The university was expecting Rs. 10 crore additional grant from the State Government for constructing buildings at Chikkaluvaru. In addition, it was expecting more grants from the UGC under the 12 Plan which would commence from 2012-13.

The university had received Rs. 11.62 crore from the UGC under the 11 Plan. The UGC had announced that it would hike the grants under the 12 Plan from a minimum of three times to a maximum of five times. Accordingly, if minimum increase was taken into consideration the university would get about Rs. 35 crore under the 12 Plan, he said.