Making every rupee pay

Updated on: Tuesday, December 27, 2011

How important is finance in the able administration of universities? Financial management is not an isolated issue but is linked to the quality of education being offered and the governance of universities.

A study conducted by the Indian Institute of Management-Bangalore (IIM-B) for the Karnataka Knowledge Commission this year explored the scenario across prominent universities in the State. Titled ‘University Finances: A study of Karnataka State Universities,' the study ventured to understand the financial machinery of the universities, linking them to the effect of the academic aspect.

As per the study, the State Government has given due importance to allocation of financial resources to universities. In 2005-6, the amount allocated for education, sports, arts and culture was Rs. 1,012 crore, which was 7.47 per cent of the total plan outlay. The boost to the education sector came in 2010-11 with an outlay of Rs. 10,505 crore, which was 15 per cent of the budget expenditure.
Recommendations

Universities are catering to around 60 per cent of the requirements of higher education. The study makes several recommendations to individual stakeholders. Some of them are:

The State Government should fix normative ratios for allocation to various sub-sectors of education.

“The State Government should gradually increase the allocation to university and higher education. There is a need to evolve a balance between technical and non-technical education.”

If the Government funds 70 per cent of the salaries and allowances of the university staff, the university can fund the remaining payment form internal sources by foregoing other budgeted expenditure.

Sixty per cent of the total salaries and allowances of payment of staff may be provided to the three established universities – Mysore, Karnatak and Bangalore. For three other universities – Gulbarga, Mangalore and Kuvempu – 75 per cent, and for the remaining, full funding for non-plan requirements has been recommended.

It has also been suggested that the State Government shift to direct Student-Centric Finance (SCF) from the current practice of faculty and staff-based funding, as this will encourage students to join universities and select the courses of their choice. Adoption of a “hybrid model,” where 50 per cent of pay and allowances of the staff will be paid directly to all universities and excess of any other funding made student-centric, is another suggestion.

Significantly, noticing that capital expenditure proposals are often meant for infrastructure, the study suggests that more attention should be paid to “quality-related inputs,” particularly research projects. For this, the creation of a separate grant of Rs. 10 crore has been recommended. The constitution of a coordination committee of banks and universities, creation of infrastructure for universities in the PPP mode where the student pays fees/rent to the project company, more scholarships, and a revision of the fee structure of PG and doctoral courses (here, fixing of a “sticker price” has been suggested) are among the other important recommendations.
Mismatch in ratio

In the report, another revelation is that of a student-teacher ratio mismatch. Here are some examples: Gulbarga University's Computer Science Department had only four permanent faculty members for 249 students (in 2009-10), while the Social Work and Women Studies departments have one faculty member each.

The Institute of Kannada Studies has five faculty members, but not a single student; the Department of Management Studies has only two permanent faculty members for 117 students.

Mysore University has the lowest student-teacher ratio of 12 and the Women's University has the highest with 31. In most universities, there is a vacancy of 30-50 per cent faculty posts.

The possibility of attracting more foreign students has also been mentioned. Citing the Economic Survey 2010 that recognises India as a knowledge hub for foreign students, the study mentions that in Karnataka, universities excepting Mysore and Bangalore universities hardly have foreign students. It may be mentioned here that the average fees charged for foreign students is approximately five times that of the general fees.
Improvements

Among the suggestions for systemic improvements, the formation of a State-level board for restructuring the undergraduate examination procedure, inclusion of performance budgeting, improvisation of the current accounting and disclosure practices of universities, and creation of a data bank have been mentioned.

The study has suggested that universities have to strengthen their relationships with industry and corporate sector and raise funds for meeting capital expenditure requirements and also establish a core fund to extend scholarships to eligible students.

Making every rupee pay

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