• 17 Apr 2018 | Mumbai | SUDESHNA SEN

Funding holds the key to autonomy for universities

Innovative financing patterns may not be plausible within the boundaries of existing government regulations

The University Grants Commission (UGC) recently granted autonomy to 60 educational institutions including Central universities, state universities and autonomous colleges. They can now recruit foreign faculty, enrol foreign students and even give incentive-based emoluments to the faculty. They are free to decide their fee structure, syllabus and curriculum. 

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Once the promised autonomy from the University Grants Commission comes about, colleges will be free to decide their fee structure, syllabus and curriculum
The Central and the state universities have been set up by Acts of Parliament or the state legislature and are, in fact, already classified as autonomous organisations in government parlance. But in practice, these universities need approval from the government on every aspect of their functioning and have to regularly report compliance. This time, however, the UGC promises real freedom.

Are the measures enough? Three issues stand out. First is the existing source of funding. 

The Central and state universities have so far sustained themselves through budgetary grants from the government, academic fee receipts from the students and interest earned from investment of government funds parked in banks. Since they are financed by the government, they are tied to government regulations. They are also subject to rigorous government audit. These regulations often hinder quick decision-making and innovation. The second issue is that of human resource. The finance officers have hardly dealt with the techniques required in the modern era to raise funds. 

The third problem pertains to bureaucracy. The executive and the finance committees comprise in-house officials and representatives of the government departments. The objective of these committees is to ensure that the institution works in line with the framework of the government. Can the existing system, therefore, implement the new autonomy measures? 

If the proposed autonomy is to flourish, it will require innovative design and financing patterns which may not be plausible within the boundaries of existing government regulations. First and foremost, functional autonomy should be accompanied with financial autonomy. Government directives should be restricted to the portion of the aid provided by the government, while any money raised by the institution on its own should be allowed to be spent by the institution as it deems fit. Flexibility in recruitment should follow. The government rules should be applicable only for posts financed by government aid. Finally, the administrative structure should be made more broad-based to include professionals in the finance and executive committees. This will ensure an alternative thinking, away from the traditional government line. 

( Sudeshna Sen is Professor, National Institute of Financial Management and former secretary, NCERT The views expressed are personal )

Source : http://paper.hindustantimes.com/epaper/viewer.aspx#