Resource mobilisation panel submits report to Punjabi varsity V-C

FUND CRUNCH AT VARSITY Prof Ghuman says the he will study the report and discuss it with senior officials of the varsity before formulating the next strategy

With the Punjabi University’s financial crisis worsening with every passing day, a resource mobilisation committee, constituted last year in November to streamline the varsity’s finances, has submitted a detailed report to vice-chancellor (V-C) Prof BS Ghuman in Patiala.

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In its budgetary allocation for 2019-2020, the university had proposed a budget of ₹717 crore, against an income of ₹344 crore. The deficit was pegged at ₹373 crore. Moreover, at present, the university already has an overdraft of ₹132 crore, which is expected to touch ₹150 crore by the end of the year.

Prof Ghuman said that the mobilisation committee had multiple meetings in the past months and has come up with a detailed report concerning the issues related with the financial condition of the university.

“The main aim of the committee is to come up with and suggest ways to deal with the financial situation. The report has been tabled before me and I am studying it before formulating the next strategy,” Prof Ghuman added.

He said that the report will be discussed in detail with senior officials and other entities of the varsity so as to work together towards improving its fiscal health.

“On the basis of findings and suggestions of the report, the university will approach the state government seeking a financial bailout package to stabilise its exchequer,” the V-C added.

A senior official, pleading anonymity, said that some of the recommendations in the report include fee hike to generate more income, streamlining work of the examination branch to curtail unnecessary expenditure and improve their efficiency, strategic medical and other claims bills related policies, among others.

The official said that the report is focussed on improving income resources of the varsity, to stop unnecessary expenditure and has a detailed financial proposal to be sent to the state government.

“The varsity is struggling to meet its committed expenses, which include salaries and pensions of employees. A major chunk of our income goes in making payments to employees,” a senior functionary said.

The cash crunch can be gauged from the fact that the expected expenditure of this year was calculated to be more than double of the total income expected.

The overall salary expenses of the varsity have increased to ₹396 crore in the current financial year as compared to ₹345 crore of last year.

Of the total proposed income of ₹344 crore in 2019-2020, the university is expecting to generate ₹226 crore from its own resources, including fee and registration charges.

In December last year, Prof Ghuman had met Punjab chief minister Captain Amarinder Singh and briefed him about the poor financial condition of the varsity.

Earlier too, the university had sought a monetary bailout package of ₹120 crore to clear bank loans and overdraft dues. However, the varsity did not receive a single penny from the government back then.

Last year, in an attempt to bail the varsity from financial crunch, the state government had increased the annual grant of the university from ₹88 crore to ₹93.37 crore. In its annual budget, the state finance minister Manpreet Singh Badal had announced a 6% increase in the annual grant for the varsity.