7th pay commission: Punjab University under severe financial crisis

Punjab University

Punjab University

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Following the implementation of 7th pay commission, the already bankrupt Punjab University will have to bear 30 per cent of the fiscal liability owing to the revision of employee’s pay scales.

The move comes after the Union Finance Ministry, in a letter, informed the university that the ministry will provide only 70 per cent of the revised pay scales and asked the university to bear the remaining 30 per cent, which is around Rs 150 crore.

The university, intimidated by the figures and its severed financial stance, expressed concerns over the ministry direction fearing the university will face irreparable financial crisis.

“If the government is saying that the university should pay 30 per cent of the fiscal liability and also generate money to clear its deficit, then PU will be in severe fiscal crisis and it will be hard to overcome the situation. It is a double harassment. Secondly, the autonomy of the institution should not be punctured, as being done by the government and MHRD. The PU is only autonomous by name now and there is no free hand in taking decisions,” said former president of Punjab University Teachers’ Association (PUTA), Mohammed Khalid, as reported in the Indian Express.

Fees hike in various courses

The university has, of late, mulled a hike in its tuition fees in various courses due to the revision of pay scales wherein the university was asked to bear 30 per cent of fiscal liability. It is decided that the university will hold a discussion at its syndicate meeting on January 21 regarding the proposal to increase fee structure to incur for the revised 7th pay commission.

  • It is speculated that there will be 12 to 13 per cent fees hike in the self-financed courses while 5 to 6 per cent will be hike in traditional courses, according to the proposal submitted by a committee
  • Fees for diploma courses will be increased to Rs 15,000 from the previous Rs 2,000
  • However, the committee has proposed to reduce fees for pharmaceutical courses from Rs 50,000 to Rs 25,000
  • Fees in law courses are proposed to decrease from Rs 25,000 to Rs 20,000, while fees for educational technology and vocational education will be reduced from Rs 43,000 to Rs 32,000

Distance courses to garner revenue

The university, in order to incur more revenue, has submitted it’s report to the HRD Ministry seeking permission to introduce distance education and online education in various courses. The university believed that introduction of distance education will bring more revenue.

source”cnbc”