ISLAMABAD: Vice chancellors of public sector universities have appreciated the federal government for allocating a Rs66 billion recurring grant for the higher education sector but said an additional grant should also be earmarked for smooth functioning of the universities.

The Higher Education Commission (HEC) had demanded Rs104 billion in the fiscal year 2022-23 as the recurring grant.

However, the government allocated Rs66 billion which is far less than the demand but similar to the allocation in the outgoing year.

“We had demanded Rs104 billion recurring grant. Before the budget, we held meetings with ministers and were told that in the first go the recurring grant equal to that of the outgoing year would be earmarked and then in coming months an additional grant would be given to the higher education sector. So we are satisfied to the extent that the first commitment has been honoured,” said Dr Mohammad Ali, the chairman of the VCs’ Committee.

Head of vice chancellors’ committee hopes govt will fulfil promise to allocate more funds in coming months

Dr Ali, who is the vice chancellor of Quaid-i-Azam University (QAU), said VCs had pinned high hope on the promise of the government for the additional grant, adding the universities will also focus on austerity measures.

An officer of the HEC said the recurring grant was far less than the demand of the HEC, adding the universities could face financial challenges related to non-development expenditure (salaries and pension) if additional grant was not released.

The government has allocated over Rs110 billion for the financial year 2022-23 for development schemes.

In the fiscal year 2021-22, the government had earmarked Rs108 billion - Rs42.4 billion for development and Rs66.25 billion for non-development expenditures.

For the upcoming fiscal year, the government has allocated Rs66 billion as the recurring budget and Rs44.17 billion for development schemes.

Last month, the VCs and HEC officials had expressed concerns that in the Indicative Budget Ceilings (IBC) only Rs30 billion had been proposed for the higher education as a recurring grant.

In a meeting, they demanded that a Rs104 billion recurring grant should be allocated in the upcoming fiscal year.

A source in the HEC said the federal government had assured the HEC and VCs that with a little stability in the economic condition in coming months the HEC will be allocated an additional grant of Rs16 billion for the universities.

Published in Dawn, June 13th, 2022