PUTA calls for special Syndicate session to discuss fiscal crisis

While expressing their growing concern over the poor fiscal health of the varsity, the Punjabi University Teachers’ Union (PUTA) has called for a special Syndicate

While expressing their growing concern over the poor fiscal health of the varsity, the Punjabi University Teachers’ Union (PUTA) has called for a special Syndicate session to discuss the crisis.

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The PUTA members on Thursday met vice-chancellor (V-C) Prof BS Ghuman, who is also the chairman of the Syndicate body, and requested him to convene a special session.

The teachers’ body has also raised its demand for a special Syndicate session through a written communiqué to the state government to provide suitable financial package for the university.

Presenting a detailed presentation about the deteriorating financial situation of the varsity, the PUTA members told the vice-chancellor that for past seven years, the management has not once been in a position to dispense salary and pensions to its staff on first of every month.

PUTA president Prof Jaswinder Singh Brar said that the overall expenditure for the year 2019-20 consists of the liability of overdraft equivalent to ₹130 crore.

“In its budgetary allocation for 2019-2020 financial year, the university had proposed a budget of ₹717 crore, against an income of ₹344 crore. The estimated deficit of ₹372.64 crore for 2019-20 is more than the estimated income,” Brar said.

He added that as far as income is concerned, as per the revised estimates of the last financial year, the university received a grant of ₹147.37 crore from the Punjab government.

“This constitutes 39.7% of the overall income of the university, which was ₹371.25 crore last year. The university’s overall income has declined from ₹445.35 crore in 2016-17 to ₹409.08 crore in 2017-18, and to ₹344 crore in the ongoing financial year,” Brar added.

PUTA secretary Gurnam Singh Virk said that the facts clearly established that the varsity is in a serious financial crisis.

“So far, the university’s response to the situation has been to resort to more and more borrowing from the State Bank of India (SBI) branch located on campus, which is not in the long term interest of the institution. This policy of borrowing and overdraft at exorbitant rates of interest has been pushing the university further into debt trap and which will ultimately lead to financial collapse,” Virk said.

The PUTA members briefed the vice-chancellor about the ongoing financial crisis which has been affecting the academic, administrative and social standing of the university as a pioneer institute.

“The PUTA is of the opinion that without special financial package from the Punjab government, it is impossible for the varsity to tide over the crisis,” Prof Brar said.

Meanwhile, V-C Prof BS Ghuman said that the varsity welcomes the genuine concern shown by the teachers’ body towards the fiscal health of the institution.

“Teachers are among the main stakeholders of the university. They have raised the issues related to varsity finances which we are trying to resolve at the earliest,” the V-C said.

Prof Ghuman said that is planning to hold a detailed discussion over the representation filed by PUTA and the same will be tabled before the varsity’s finance committee and Syndicate. “Members of PUTA will also be included to hold a healthy discussion on the matter,” he said.

He added that the varsity has already planned to approach the state government to seek a bailout package in its annual budget for the next financial year.

In its representation, the PUTA has briefed that due to financial crunch, the varsity has failed to deposit government provident funds and other deductions on time causing interest loss to staff, non-payment of honorarium charges, non-payment of three instalments of dearness allowances (DA) worth ₹17 crore; not allowing the departments to spend contingency funds and not clearing dues of guest faculty, part-time teaching, contractual and ad-hoc staff on time.