On the issue of loans to the State’s universities, the Haryana government has clarified that it was only meant for “capital expenditure” and the grants-in-aid for salaries and wages of the university employees would continue as before.
Speaking to The Hindu, T.V.S.N. Prasad, Additional Chief Secretary, Finance, said all fears and apprehensions surrounding the government’s decision were “unfounded” and the loan being offered to the universities was only for the purpose of capital expenditure and was “interest free” and “in perpetuity”.
“I want to make it clear that the Haryana government would continue to release money for the recurring expenditures of the universities such as salaries and wages as grants-in-aid. The provision for loan to the universities is only for creating the infrastructure. We won’t recover it and not charge interest for it,” said Mr. Prasad.
He said the purpose behind the move was to bring down unwanted expenditure on the infrastructure creation in the universities and make our institutes more competitive.
“Since the money for capital expenditure will be in the form of a loan, we can make provisions for its upkeep and maintenance in the subsequent budgets every year. It is, in fact, a good thing. It will also put pressure on the universities to generate revenue and create their own infrastructure instead of taking loan from the government. The aim is to make the universities more competitive and not to earn money from them. The government can convert the loans into grants-in-aid if there are protests, but it would be a lost opportunity for the State,” said Mr. Prasad.
Brij Kishore Kuthiala, Chairperson, Haryana State Higher Education Council, said this was a measure of financial management and fiscal discipline and the entire matter would be discussed in a two-day conference of Vice Chancellors convened on May 14 and 15 by the council. He said the Finance Secretary, Haryana, will interact with the Vice Chancellors on the matter and related issues.
