CHENNAI: The Tamil Nadu government's decision to reduce the allocation for the Higher Education Department in the 2026-27 Budget has drawn fresh criticism from professors and educationists, who say the sector continues to face a severe financial crunch despite expectations that the new government would increase funding.
Stakeholders pointed out that inadequate funding for higher education has been a long-standing concern, with State universities grappling with financial constraints for nearly a decade. They said many had expected the new government to address the funding crisis, but the latest Budget has instead reduced the allocation compared to the previous financial year.
The government has allocated Rs 8,393 crore to the Higher Education Department for 2026-27, down from Rs 8,494 crore in the previous financial year, marking a reduction of Rs 101 crore.
Educationists and professors questioned the rationale behind the cut, saying that at a time when universities require greater financial support and new academic initiatives, reducing the department's allocation was unacceptable. They argued that the Budget should have provided additional funds to strengthen higher education rather than scaling back allocations.
Despite the reduction in the overall allocation, the government announced several new initiatives for the sector.
A major announcement was the launch of the TN-SUDAR Scheme, under which 200 integrated student hostels with a total capacity of one lakh beds will be constructed across the State. The project, estimated to cost Rs 3,200 crore, will be implemented with participation from both the government and the private sector.
The hostels will feature air-conditioned digital libraries and other modern amenities aimed at improving the learning environment for students.
To implement the project, the government will establish the Tamil Nadu Student Hostels and Infrastructure Corporation (TNHSC) with an initial capital of Rs 10 crore. It will also provide Rs 640 crore, equivalent to 20% of the project cost, as a construction grant.
The Budget also announced the Vetri Laptop Scheme, with an allocation of Rs 2,000 crore to provide laptops to students and strengthen digital learning.
The government further reiterated its demand for the abolition of the NEET examination and maintained that admissions to medical courses should be based on Class 12 marks.