Madras University projects drop in fee income as expenditure rises

CHENNAI: The University of Madras has projected a decline in fee income over the next two financial years even as its expenditure continues to rise, underscoring the growing financial strain on one of the state's oldest public universities.

According to the university's revised estimates for 2025-26, fee income is expected to decline by about Rs 4 crore compared with the revenue earned in 2024-25. The Budget Estimate for 2026-27 projects a further shortfall, with fee collections remaining nearly Rs 3 crore lower than the 2024-25 level.

Audited accounts show that student-related fees remain one of the university's major revenue streams, generating more than Rs 72.77 crore through examination fees, self-supporting courses, distance education programmes and other academic fee collections. Government grants, amounting to around Rs 62.31 crore, constitute the single largest source of revenue, while income from university properties provides additional earnings.

Despite these revenues, expenditure has continued to outpace income. The university has projected a deficit budget of Rs 149 crore for 2025-26, up from Rs 146 crore in the previous financial year. Total revenue for the current year is estimated at Rs 135 to Rs 145 crore, while expenditure is expected to go over Rs 240 crore.

Budget documents show that a substantial share of the university's expenditure is earmarked for salaries and pension payments, making employee-related costs its largest financial commitment. The remaining funds are allocated towards electricity charges, payments to guest lecturers, examination expenses, office administration, maintenance works and other essential operational costs.

University sources said the financial crunch has begun affecting day-to-day functioning. Several departments are reportedly struggling to procure laboratory chemicals, scientific equipment and other materials required for practical classes and research. Routine purchases such as computers, printers and office stationery have also been delayed due to a shortage of funds.

The sources argued that increasing tuition fees is not a viable solution, as fees for several university programmes are already comparable with those charged by private institutions. Instead, they said timely release of the State government's annual grant would help address many of the university's financial difficulties without placing an additional burden on students.

Former Vice-Chancellor SP Thyagarajan told DT Next that the university has not taken sufficient steps to diversify its sources of revenue. He said inadequate emphasis on research and other revenue-generating initiatives, coupled with the prolonged absence of a Vice-Chancellor, has weakened the institution's ability to seek additional financial support from the government.

Thyagarajan also called for a common policy to address the financial challenges confronting State universities. He noted that the crisis at the University of Madras reflects a wider trend across Tamil Nadu, where rising salary commitments, pension liabilities and operational costs have placed increasing pressure on university finances.

Academicians said a comprehensive financial support package and a substantial increase in annual State funding are essential to strengthen public universities, improve infrastructure and research facilities, enhance student services and ensure effective academic administration.