ISLAMABAD, Aug 1: The syndicate of Azad Jammu Kashmir (AJK) University has approved budget estimates of Rs452.920 million for the financial year 2006-2007 with a yawning deficit of Rs94.670 million, official sources told Dawn.

Though the university administration expects to cover the deficit through the Higher Education Commission’s grants on account of earthquake relief, but the HEC’s tussle with the federal government over the cut in its annual budget will make it difficult for the university to get the fund, they said.

The syndicate during its recently held meeting also approved the revised budgetary estimates of Rs374.557 million for the year 2005-2006 in the aftermath of the deadly earthquake.

The budget document shows the total income of the university at Rs358.250 million, whereas its expenditures were estimated at Rs452.920 million.

The income of the university includes federal government grant of Rs229.790 million, opening balance Rs50 million, own resources through fee and funds Rs70.00 million, government’s research grant Rs2 million and AJK government grant of Rs4 million.

Under the heading of expenditures, Rs249.704 million will go to pay and allowances, other expenditures Rs174.719 million, dearness allowance (15 per cent increase in the pay) Rs17.592 million, Tenure Track System Rs6.666 million, impact of 15 per cent increase in medical allowance Rs1.818 million, creation of teaching posts Rs1.420 million and transfer of endowment fund Rs1 million.

Due to the earthquake, the university buildings both at Muzaffarabad and Rawlakot have completely collapsed with virtually no infrastructure left to continue academic activities.

The university shifted both the campuses to Islamabad and was provided funds to the tune of Rs83.602 million. However, the funds provided are not sufficient to control the deficit, they said.

The major factors behind the deficit are: additional impact due to exemption of fee for earthquake affected students; 25 per cent increase in house requisition, hiring and ceiling; impact of dearness allowance; students’ fellowships due to subsidised hostel accommodation, messing and free transpiration.

The fact that the students of the AJK university have been placed in various universities of the twin cities, which involved increased transport and hostel expenses and despite best efforts, the university could not curtail its expenditures.

Therefore, the university administration expects a supplementary grant from both the AJK government and the HEC to meet the deficit, the sources said.