Facing criticism over its failure to give monthly salaries to its employees, Punjabi University's weak financial position is the result of the Punjab government's inability to fulfil its financial commitments towards the varsity.
The state government owes at least R32 crore to the university, which, as per a written agreement, it was supposed to allot to the university.
Firstly, the state government has not paid the last quarter payment of R12.5 crore, which it had to pay to the university as part of total R48 crore to be given as per the annual budget of the state. The instalment, which was to be given to the university by the end of March this year, has not been received till now, even as the state government, for 2013-14, on Thursday issued the first instalment of R12.5 crore from the budgetary provisions.
Second is the state government's non-committal attitude to give R20 crore, which it has to pay to the university for opening six constituent colleges. This money required from the state government is nearly R1.5 crore a year for each college but ever since the institutions came into existence in 2011, the government has paid the amount only once.
"The secretary of finance and the directorate of public instructions (colleges) declined to pay further money on the ground that it was only a one-time settlement, not a monthly-aid arrangement," a senior official said.
Though an MoU in this regard between with the state government, Centre and Punjabi University was signed to run these campuses under a scheme of the union ministry of human resources and development, the Punjab government is shying away from its "responsibility" citing one reason or other.
"It's the state government's attitude of not giving us the sanctioned amount, which has put the financial condition of the university in a mess. There may have been few other issues as well, but when you did not get the amount promised by the government, it gets very difficult for any institution to run on its own," a high-up in the university added.
Registrar AS Chawla said the university has sent fresh requests to the state government to issue the amount promised for the university. "Hope they would listen us this time," he said.