The financial crisis engulfing Haryana’s state universities has deepened, with 22 institutions collectively burdened with a staggering debt of Rs 6,625.82 crore.
The predicament stems from the state government's controversial decision to convert grants-in-aid into loans, a move that has sparked widespread concern over the future of public higher education.
Former Haryana finance minister and senior Congress leader Professor Sampat Singh has strongly criticised the government's policy, warning that it could ultimately lead to the closure of these universities or their takeover by private entities, making higher education increasingly unaffordable.
Speaking at a press conference, Singh, who also served as the state’s home minister, highlighted that these institutions had already expended Rs 5,416.07 crore from the loans, with the remaining sum expected to be exhausted by the end of the current financial year.
Shift from grants to loans
Singh recalled that on 29 April 2022, the state government halted the release of grants and instead sanctioned Rs 147.75 crore as a loan to ten state universities for the first quarter of that financial year.
The decision triggered an outcry from academic circles, forcing the government to backtrack.
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A subsequent clarification issued on 12 May 2022 stated that the Rs 147.75 crore had been granted as financial aid.
However, Singh alleged that despite the assurance, the government continued to classify funds meant for universities as loans. While the first two quarters of 2022-23 saw the release of grants, later disbursements were recorded under ‘non-recurring expenditures’ rather than explicitly as grants-in-aid.
“Yet, official records revealed the truth. These funds were allocated under head 6202 – loans for education, sports, art, and culture, instead of head 2202, which pertains to grants-in-aid. This classification confirmed that the funds were indeed loans,” Singh stated.
Push for self-sustainability
Adding to the financial strain, the state government issued an order on 28 May 2023, directing universities to reduce dependence on state funding and generate their own revenue.
Institutions were urged to explore alternative financial sources, including alumni contributions, corporate social responsibility (CSR) initiatives, public-private partnerships, research grants, patents, and the commercial use of surplus land.
However, the proposal met with strong resistance, compelling the government to withdraw the order on 23 June 2023.
Higher education at risk
Professor Singh, who was formerly a college teacher before joining politics, pointed at the gravity of the situation, warning that the policy could have far-reaching consequences for students from lower and middle-income backgrounds.
“The government’s approach threatens the very existence of state universities. If they are either shut down or handed over to private entities, it will make higher education unaffordable for a significant section of society,” he cautioned.
He urged university faculty, non-teaching staff, students, and social and political organisations to come together to safeguard public higher education from what he described as an impending crisis.
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