Madras University allotted Rs 11.72 crore against pension burden, professors say not helpful
TNN | Feb 15, 2020, 02.34 PM IST
TNN | Feb 15, 2020, 02.34 PM IST
CHENNAI: The state government on Friday announced a special grant of 11.72 crore to the 161-year-old Madras University towards the pension fund. While welcoming the announcement, professors said the grant would not help solve the existing financial crisis in the university.
The university sought a 45 crore bail-out package from the government to meet its annual pension burden. Due to the financial crisis, the university is yet to pay terminal benefits to staff who retired between 2016 and 2019.
Without any fund allocation, the previous administration has constructed seven buildings including two mega buildings in the university's Guindy and Taramani campuses from the university fund. Further, implementing the seventh pay commission scales of pay for teaching, non-teaching staff and pensioners, the monthly expenditure of the university has increased by at least 4 crore to 5 crore, which worsened its financial position.
"Since the institute is a state university, the Tamil Nadu government should bear at least its annual pension burden. Then the university may come out of the financial crisis," a senior professor said. At present, the university is getting 27 crore as interest from its corpus fund, but expenditure towards pension increased to 60 crore a year.
A syndicate member said charging low fees for PG programmes and PhDs also contributed to our present crisis. "While Anna University charges 36,000 for PhD, our university is takes only 8,000. The university should be allowed to hike its fee to increase revenue," he said.
Another professor pointed out that Annamalai University has been provided 225 crore to enable the financial crisis. "We are not against Annamalai University. But, the state government should have given at least 10% of that amount to manage the crisis in the first university (Madras University) of the state," he said.
The university has presented a 203 crore budget for 2019-20 with an accumulated deficit of 84.92 crore. Besides, the university also should return transferred earmarked funds to non-plan account.
The university sought a 45 crore bail-out package from the government to meet its annual pension burden. Due to the financial crisis, the university is yet to pay terminal benefits to staff who retired between 2016 and 2019.
Without any fund allocation, the previous administration has constructed seven buildings including two mega buildings in the university's Guindy and Taramani campuses from the university fund. Further, implementing the seventh pay commission scales of pay for teaching, non-teaching staff and pensioners, the monthly expenditure of the university has increased by at least 4 crore to 5 crore, which worsened its financial position.
"Since the institute is a state university, the Tamil Nadu government should bear at least its annual pension burden. Then the university may come out of the financial crisis," a senior professor said. At present, the university is getting 27 crore as interest from its corpus fund, but expenditure towards pension increased to 60 crore a year.
A syndicate member said charging low fees for PG programmes and PhDs also contributed to our present crisis. "While Anna University charges 36,000 for PhD, our university is takes only 8,000. The university should be allowed to hike its fee to increase revenue," he said.
Another professor pointed out that Annamalai University has been provided 225 crore to enable the financial crisis. "We are not against Annamalai University. But, the state government should have given at least 10% of that amount to manage the crisis in the first university (Madras University) of the state," he said.
The university has presented a 203 crore budget for 2019-20 with an accumulated deficit of 84.92 crore. Besides, the university also should return transferred earmarked funds to non-plan account.
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