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Public Institutions in India Consider New Methods of Financing
Public Institutions in India Consider New Methods of Financing
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Jinusha Panigrahi
National University of Educational Planning and Administration (NUEPA)
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By
Jinusha Panigrahi
https://www.insidehighered.com/blogs/world-view/public-institutions-india-consider-
new-methods-financing
2 COMMENTS
Indian higher education system has experienced a major transition during the last decade not only in
terms of the massive participation of diverse students in higher education but also due to the
participation of new private HEIs in general, as well as technical courses. The changing institutional
landscape is the result of the structural adjustment policies and new economic reforms that
encourage market influences in higher education decision making. In response to policy changes, the
public HEIs (PHEIs) have also undergone a major transformation, adopting privatization measures
due to a decline in funding by the central and provincial governments. Along with privatization
measures the provincial universities practice several cost-saving measures that have non-inclusive
implications.
Decline in public funding
India achieved massification of higher education (with 15% GER) in 2009—total enrolment in higher
education has grown from 20.7 million in 2009 to 34.6 million in 2018. By 2015/16, the gross
enrolment ration (GER) had reached 24.5%. There was a rapid expansion in the number of HEIs—
private and public. Public funding has not kept pace with expansion. The expenditure on university
and other tertiary education as a percentage of GDP by central government has declined from 0.34
percent of GDP in 2009-10 to 0.22 percent in 2014-15; the share contributed by provincial
governments declined from 0.56 percent to 0.44 percent during the same period.
Provincial-level PHEIs in India have shifted from a mostly public-funded system to a mostly private-
funded system (putting increased pressure on family contributions) with few exceptions. The recurring
grants from provincial governments and non-recurring grants from the central government taken
together meet 70% or 50% (or at times 30%) of the annual expenditure of provincial PHEIs. Various
strategies are being adopted by these provincial HEIs to compensate for the resource gap in
response to decline in public funding.
Jinusha Panigrahi is assistant professor and co-chairperson, Centre For Policy Research in Higher
Education (CPRHE), National Institute of Educational Planning and Administration in New Delhi and
co-chairperson, Economics and Finance of Education Special Interests Group of the Comparative and
International Education Society (CIES), USA
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