The Indian government’s budget for 2024-25 has reduced the allocation to the University Grants Commission (UGC) to ₹2,500 crore, down from ₹5,360 crore in 2023-24, marking a significant cut in funds. This reduction may point toward a broader move to decrease the UGC’s authority over grants for public universities.
Traditionally, the UGC has provided grants for various expenses to central universities and for infrastructure development to state universities. Additionally, the commission administers several fellowship schemes, including the Junior Research Fellowship (JRF), which offers allowances to research scholars.
According to a government official, the Ministry of Education has begun taking over responsibilities for the disbursement of salaries and pensions to central university employees. Moving forward, other grants previously managed by the UGC will also be handled by the ministry. This shift in responsibilities reduces the UGC’s role in financial management for central universities.
The overall allocation for higher education in the budget was ₹44,095 crore for 2023-24, which was later revised to ₹57,244 crore. The allocation for 2024-25 is set at ₹47,620 crore, reflecting a slight increase from the previous year’s budgetary estimate but approximately ₹9,600 crore less than the revised estimate for 2023-24. The budget has allocated ₹1,800 crore for the World Class Institutions scheme, which aims to elevate 10 public-funded institutions to global excellence.
