Once emblems of accessible, high-quality education, India’s state-funded universities and colleges now teeter on devastation. The situation as it is right now is marked by crumbling infrastructure, unfilled position of faculty, and difficulty keeping fundamental services running. Visit any state-funded university, it is highly likely one will run into a swaths of unkempt lawns, buildings, dilapidated toilets, dark corridors and crumbling furniture and fittings.
This unstable condition is not accidental; it is a direct result of decades of falling state funding, which forces institutions to search creative ideas to guarantee their existence and continuous contribution to the intellectual capital of the country.
Erosion in state funding a systemic crisis
For decades, government grants — once accounting for more than 90% of university budgets and now drastically reduced — have been the cornerstone of state-funded education. On closer inspection, though, a worrying tendency emerges: although nominal allocations would seem to rise, the real value, inflation-adjusted, presents a negative picture.
Adjusted for inflation, government financing has grown at a modest 2.58% yearly — a pace much exceeded by the rising expenses of labour, infrastructure maintenance, and research. As such, a chronic underfunding is choking academic quality and creativity.
The figures say a lot. Salary and pensions account for an astounding 85% of university budgets, therefore leaving little for academic enrichment, research, or necessary infrastructure improvements. The terrible inefficiency in fund use adds to complicate the matter. Shockingly, 162 public universities did not spend their allotted budgets which means they did not have the capacity to manage the allotted resources, according to a CAG report in 22-23.
Previously a vital source of project finance, the cancellation of five-year plan development grants has further worsened the situation and left institutions such as Delhi University struggling with yearly deficits above ₹400 crore. Similar is the case of University of Madras in south India or Panjab University, Chandigarh (over ₹200 crore deficit)
One direct fall out for example is the slow deterioration of research and educational quality, which affects India’s capacity for worldwide competitiveness. The main causes are several and range from bureaucratic delays and a lack of responsibility to administrative standstill and political intervention in tenders. Too frequent instances of absent Vice-Chancellors and delayed cash releases point to the structural flaws impeding development.
Furthermore, the absence of financial autonomy makes it impossible for colleges to react appropriately for their particular requirements and possibilities. Rigid government policies limit their capacity to deploy money strategically, therefore discouraging possible contributors who want guarantee that their donations would be spent wisely and efficiently. Although the National Education Policy 2020 stresses more autonomy, its implementation is still delayed, leaving universities in a condition of uncertainty unable to fully use the freedom required to handle their financial difficulties.
Many States say the problems come from attempts at over-centralization of regulations. They say this is coming in the way of efficient running of the universities and appointment of key academic leaders.
Roads to resource mobilization: A multi-pronged approach
While there’s absolutely no two opinions that government budgetary allocations have to be increased for higher education spending including higher support for State-funded universities, it is time to look beyond and above that argument. While the demand and struggle for State support goes on, how can universities aggressively seek other sources of funds? That’s a reality to be taken on, given the realities of dwindling public support to guarantee their existence and further expansion.
Comprising both charitable activities and strategic improvements to public finance systems, the following paths provide a road map for sustainable resource mobilization.
Unleashing the potential of alumni networks
Institutions such as IIT Madras, which raised ₹131 crore from alumni in 2021-22, are a striking evidence of the potential of involved graduates. State colleges have to copy this accomplishment by giving the creation of strong alumni relations top priority top importance. This includes setting up special alumni offices, keeping up consistent correspondence via newsletters and social media, and planning interesting activities meant to strengthen a feeling of community and shared goal.
One sustainable source of money is endowment funds — especially those meant for scholarships, research projects, or the creation of new laboratories. Using tiered donor societies and providing incentives like name rights, advisory roles, or invitations to special events will help to motivate more significant donations A culture of giving back also results from public appreciation and honouring of alumni achievements.
Closing the Corporate Social Responsibility divide
According to India’s CSR law, businesses should set aside 2% of their earnings for charitable causes. Still, a disproportionately small amount of these dollars go into higher education. Universities have to aggressively present themselves as useful allies in tackling national issues including public health enhancement, skill development, and mitigating of climate change.
This calls for forming strategic alliances with businesses, matching research initiatives to corporate goals, and providing chances for businesses to fund research institutes or professorships. Emphasizing the concrete advantages of university research — such as cutting-edge technologies or trained graduates prepared for the workforce — may draw corporate sponsorships and help to build mutually positive connections.
Accepting market mechanisms and self-financing
Starting self-financed degree programs in in-demand disciplines as artificial intelligence, data science, public policy, or healthcare management can bring in a lot of money without sacrificing access for eligible applicants. University statues should empower the administration to use the money from these initiatives to be reinvested compulsorily in infrastructure, faculty employment, and scholarships creation.
Universities can also investigate creative financing tools including public-private partnerships (PPRs) for the building of new facilities including hostels and research labs or green bonds for sustainable campus development. Attracting investors and guaranteeing their long-term success depend critically on openness, responsibility, and a clear showing of the good social impact of these projects.
Supporting policy changes to reward giving
Government support is still essential, but reforms are required to encourage private charity. Promoting tax incentives like to those provided in the United States, where contributions lower taxable income, can help to greatly increase philanthropy to higher education. This calls for a coordinated campaign to advocate to legislators and increase knowledge of the vital part philanthropy plays in supporting academic excellence.
Dealing with systemic problems
Universities have to address the structural issues impeding their efficiency and deter possible donors even as they seek different sources of finance. These comprise:
1. Improving efficiency and developing donor confidence depend on streamlining administrative processes, lowering bureaucratic delays, and isolating procurement choices from political intervention against bureaucratic inactivity and political meddling.
2. Implementing strong financial management systems, using digital platforms for real-time grant tracking, and doing independent audits can help to guarantee that money is spent sensibly and productively.
3. Establishing independent boards to supervise charitable funding and developing transparent governance rules helps institutions to prevent against too strong donor influence so ensuring that academic decisions remain in line with institutional values and aims.
In essence a collaborative imperative
Reviving the state-funded universities of India calls for cooperation among all those involved. From being the only donor, the government has to change to become an enabler, simplifying CSR processes, providing tax advantages, and building strong alumni networks. Universities themselves have to professionalize their fundraising activities, show their influence, and create a strong narrative to draw in money and guarantee long-term support.
The alternative is a bleak picture of a higher education system broken into haves and have-nots whereby only a small number of institutions flourish while the remainder fights to survive. Investing in public universities is not only a need for a country hoping to be a worldwide knowledge leader; it is a must. India can make sure that its state-funded universities remain engines of innovation, social mobility, and national development by adopting creative funding strategies, tackling structural problems, and encouraging a philanthropy culture.
Published – April 04, 2025 09:28 pm IST