Financing of State Universities in India: A Case Study




Higher education, Merit good, Internal resource generation, University finance


The fiscal crisis facing the economy has led to withdrawal of the state from major sectors of the economy including education. With the advent of the liberalized economic policy the private sector has been playing a pivotal role in the economic development. Higher education ceases to be the
‘merit good’ and the universities are encouraged to mobilize resources by their own efforts rather than depending on government grants. This has impacted the financing of state and central universities across India. Actually, this paper evaluates the funding of state universities in India through a case study, taking into consideration the changing contours of financing higher education. The core idea of the study is to analyse the resource mobilization as well as its utilization by the selected university. The study is based on secondary data. The discussion on the funding pattern reveals that the university is highly dependent on state grants for their day-to-day functioning. Though the efforts to generate internal resources is picking up, the university has failed to address the long run financial crunch of the university. The study concludes that unless the universities explore alternative channels of resources mobilization, it would be difficult to offer quality education in this era of globalization.


Download data is not yet available.


Albrecht, D., & Ziderman, A. (1995). Financing universities in developing countries. London: Flamer Press.

All India Council for Technical Education (1994). Report of the High Power Committee for Mobilization of Additional Resources for Technical Education. AICTE, New Delhi.

Ansari, M.M. (October 02, 1989). Resource Allocation and Financial Accountability of Universities. University News, pp.17-21.

Azad, J.L. (1976), Financing Institutions of Higher Education in India: The Need for a Realistic Fee Policy. Higher Education, 5(1), 1-7.

Bowles, P., & Wagmen, B. (2001). Globalization and the Welfare State: Four Hypotheses and Some Empirical Evidence. Eastern Economic Journal, 23(3), 317-336.

CDEST (2002). Finance, 2000: Selected higher education statistics. Commonwealth Department of Education Science & Training, Commonwealth of Australia.

Chatterjee, D., & Rudra, S. (November 18, 2018). Fund drive for varsities: Innovative funding options can keep Indian universities on the go. The Asian Age. Retrieved from

Chattopadhyay, S. (January 11, 2020). Public Funding of Universities In Pursuit of Efficiency, Equity and Excellence, Economic and Political Weekly, 55(2). Retrieved from

Detya (1999). Selected higher education finance statistics. Department of Education, Training and Youth Affairs.

EUA (2008). Financially Sustainable Universities: Towards Full Cost Pricing in European Universities, European University Association.

Friedman, M. (1955). The Role of government in education. In: Solo, R.A. (ed.), Economics and the Public Interest.New Jersey: New Brunswick.

Harman, G. (1999). Vouchers or student centered funding? The 1996-1998 Australian review of higher education financing and policy. Higher education policy, 12, 219-235.

Johnstone, D. (1998). The financing and management of higher education: A status report on worldwide reforms. The World Bank Washington, D.C.

Krishnan, C. (2012). Student Support Services in Distance Higher Education in India: A Critical Appraisal. International Journal of Research in Economics and Social Sciences, 2(2), 459-472.

Krishnan, C (2004), Distance Higher Education in Kerala: Students’ Assessment, Discussion paper, KRPLLD, Centre for Development Studies, Thiruvananthapuram.

Nanjundappa, D.M. (1994). Finance and Management of Higher Education, Deep and Deep, New Delhi.

NCES (1997). National center for education statistics: Finance FY97 survey, integrated Post secondary education data system. U.S. Department of Education.

Nigavekar (2003). Key note address to the UGC Golden Jubilee Seminar on Public Private Participation in Higher Education, University of Calicut, August 27-28.

Panigrahi, J. (2018a). Public Institutions in India Consider New Methods of Financing. The World View, A Blog from the Centre for International Higher Education.

Panigrahi, J. (2018b). Financing of Higher Education: Evidence from Select Case Studies of Universities in India. Aarthika Charche, 3(1), 37-46.

Tilak, J.B.G., & Geetha Rani (2003). Changing Pattern of University Finance in India. Journal of Services Research, 2(2).

Tilak, J.B.G (1988), University Finances in India: A Review of Problems and Prospects, Higher Education, 17(6), 603-635.

Tilak, J.B.G., & Varghese, N.V. (1991), ‘Financing Higher Education in India. Higher Education, 21, 83-101.

Tilak, J.B.G. (1993). Financing Higher Education in India: Principles, Practice and Policy Issues. Higher Education, 26(1), 43-67.

Tilak, J.B.G., (1997a). The Dilemma of Reforms in Financing Higher Education in India. Higher Education Policy, 10(1), 7-21.

Tilak, J.B.G. (1997b). Lessons from Cost Recovery in Education. In: Colclough, C. (ed) Marektising Education and Health in Developing Countries: Miracle or Mirage? (pp. 63-89). Oxford: Clarendon Press.

Tilak, J.B.G. (2000). University Finance in India: A Profile, National Institute of Educational Planning and Administration (India), NIEPA

UGC (1993). UGC Funding of Institutions of Higher Education, Report of Justice Dr. K. Punnayya Committee, 1992-92, University Grants Commission, New Delhi.

Weiler, H.N. (2001). States and Markets: Competing Paradigms for the Reform of Higher Education in Europe. Occasional Paper No. 16, National Center for the Study of Privatization in Education, Teachers College, Columbia University. Retrieved from

World Bank (1997). China higher education reform, The World Bank, Washington, D.C.




How to Cite

Krishnan, C. . (2021). Financing of State Universities in India: A Case Study. Issues and Ideas in Education, 9(1), 7–19.



situs judi online terbaik yang rekomendasi daftar situs judi slot online deposit pulsa, live casino online, dan bandar judi bola dengan jackpot slot gacor terbesar di Indonesia.