E-Paper
Punjab: Punjabi varsity in financial mess, paying ₹14 cr in interest annually
Punjabi University’s total expenditure for the financial year 2024-25 stands at ₹703.16 crore, while its own income amounts to only ₹229 crore; the Punjab government’s contribution of ₹375 crore annually is reflected in the revised budget estimates
Under a huge financial burden, Punjabi University, Patiala, is struggling to cope with a massive ₹144.15-crore loan, which demands an annual interest payment of ₹14 crore. The university has already paid a staggering ₹136 crore in interest since the financial year 2015-16, according to the institution’s financial data.
Acknowledging the challenges, newly appointed vice-chancellor (VC), Dr Jagdeep Singh, expressed his concerns over the university’s financial situation while also appreciating the Punjab government’s decision to increase the monthly grant in a bid to ease the financial crisis.
Monthly grant hiked to ₹30 cr
In 2023, chief minister Bhagwant Mann raised the monthly grant to the university from ₹9.5 crore to ₹30 crore, in an effort to help the university regain its financial stability. CM Mann emphasised his commitment to eliminating the University’s debt, stating that he would not let the institution continue under such financial strain, aiming for its revival as a premier centre of higher education.
Despite the increased grant, the VC highlighted that while this support was beneficial, more was required to fully restore the financial health of the institution. “We are exploring multiple strategies at both the governmental and institutional levels to reduce our financial dependency, control expenditures and generate new revenue streams,” he said.
Debt accumulation and financial strategy
The university’s debt has shown a sharp rise over the years — from ₹44 crore in 2015-16 to ₹144.15 crore in 2025-26 — the latest financial data reveals. The VC said that clearing this debt would result in savings of ₹14 crore annually, which could be redirected towards improving academic and infrastructural development.
“We need to urgently address issues related to infrastructure and faculty recruitment. If we can eliminate this annual debt burden, we will have the resources to enhance the overall quality of education at the University,” the VC said.
Punjabi University’s total expenditure for the financial year 2024-25 stands at ₹703.16 crore, while its own income amounts to only ₹229 crore. The Punjab government’s contribution of ₹375 crore annually is reflected in the revised budget estimates.
Teachers’ body calls for debt waiver
Secretary general of the Punjabi University Retired Teachers’ Association Jagbir Singh has proposed a set of suggestions to improve the financial condition of the university. “We recently held a conference to discuss the financial status with the VC. Our key recommendation is for the university to stop pilferage of funds and explore new and diverse financial avenues,” he said.
He further stressed the need for the Punjab government to waive the university’s debt, which would allow the institution to redirect the ₹14 crore annually spent on interest towards bettering the university’s infrastructure and faculty strength.
