State Universities stare at a financial crunch with the government cancelling the last instalment of the non-Plan grant pertaining to the 2022-23 fiscal year.
In a circular, the universities have been informed that the instalment cannot be sanctioned since the particular fiscal year has passed and the next has begun. The financial constraints of the government are believed to have prompted the move.
The denial of funds could have a telling effect on university administration considering their reliance on government grants to foot salary and pension bills.
While the Higher Education department has conveyed the decision to Kerala, Mahatma Gandhi (MG), Calicut and Kannur Universities, the Cochin University of Science and Technology (CUSAT), and the Sree Sankaracharya University of Sanskrit, the institutions have begun to explore alternatives to meet their financial commitments.
Kerala University which receives a monthly grant of ₹30 crore is likely to be the worst hit. Calicut and MG Universities receive ₹20 crore and ₹16 crore respectively, while CUSAT, Sanskrit and Kannur Universities are usually allocated ₹14 crore, ₹6 crore and ₹5 crore respectively.
According to an official, the situation might also affect academic activities in the long run, especially as the emerging crisis has come against the backdrop of universities transferring their funds to the State Treasury on the insistence of the government. Any delay in sanctioning the parked funds could affect even those research projects that are sponsored by the University Grants Commission and other agencies.
The launch of the Sree Narayana Guru Open University had led to significant revenue dips for Kerala and Calicut Universities which used to generate a considerable amount of their incomes through open and distance learning programmes.
The Finance Department had directed State universities to establish pension funds to shoulder pensions and retirement benefits last year. However, the order was frozen after the move faced vehement objection from the universities and service organisations.
