E-Paper
Former minister blames BJP govt of making state varsities debt ridden
He said that this financial burden resulted from the state government’s decision to convert grant-in-aid meant for research, teaching, and other university expenses into loans.
Former Haryana finance minister, Sampat Singh on Thursday blamed the BJP government in the state for making a number of state universities debt ridden.
The Congress leader at a briefing said that in the last three years, 22 state universities have accumulated a debt of about ₹6,625 crore. He said that this financial burden resulted from the state government’s decision to convert grant-in-aid meant for research, teaching, and other university expenses into loans.
Singh said that the state universities have already spent ₹5,416 crore from these loans, with the remaining amount expected to be utilised by the end of the current financial year.
Singh said the government’s approach is aimed at cutting financial assistance to state universities, potentially forcing them to shut down or be taken over by private entities. “Should that happen; the students from the lower and middle classes would be unable to pursue higher education. It is time university teachers, non-teaching staff, students, social and political organisations step forward and fight for the future of state universities,” the former minister said.
The Congress leader said that on April 29, 2022, the Haryana government stopped grants and instead provided ₹147.75 crore as loan to 10 state universities for the first quarter of the financial year. The decision triggered widespread opposition in academic circles, forcing the government to backtrack.
“Amid mounting criticism, the government issued a clarification on May 12, 2022, stating that the ₹147.75 crore was, in fact, grant-in-aid. Despite this assurance, the government continued converting grants-in-aid into loans. After releasing grants for the first two quarters of 2022-23, subsequent disbursements were labelled as funds for “non-recurring expenditures” rather than explicitly as loans,” Singh said.
The former minister said that an official notification made it clear that these funds were debited to head 6202 – loans for education, sports, art, and culture.
“Adding to the financial strain, the government issued an order on May 28, 2023, directing universities to generate their own finances and reduce dependency on state funds. It urged them to raise money through alumni contributions, corporate social responsibility, public-private partnerships, research grants, patents, and commercial use of surplus land. However, facing resistance, the government withdrew the order on June 23, 2023,” he said.
The Congress leader said since then the universities have been receiving loans, a fact confirmed by official records, including the department-wise budget status reports for plan schemes for 2022-23, 2023-24, and 2024-25.
