Financial crisis: Govt to transfer FD of universities to state treasury , Financial crisis, university, fixed deposits, state treasury, kerala government, Kerala latest news

Aneesh Jacob

26 January 2023, 09:21 AM IST

2 min read

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Representational Image | Photo: Mathrubhumi

Thiruvananthapuram: In a bid to overcome the state’s financial crisis, Kerala government is planning to transfer the fixed deposits (FD) of universities in banks to the treasury. The government has reportedly sought the details of FDs of each universities, own revenues and bank deposits.

Once the FDs are transferred to the treasury, the universities shall receive small hike in the interest rates. However, if the government imposes limits on money withdrawals, owing to financial crises, then it is likely to affect the universities.

Moreover, the government’s approval is required to withdraw more than Rs 25 lakhs. Earlier, the dispensation of non-plan funds, allocated by the government, was also made through the treasury in all the universities, except Kochi.

Apparently, all the non-plan expenditure, including salaries and pension, will be met from this fund. However, these fund allotments have been delayed for the past two months. Due to this, the universities are now attempting to pay salaries and pensions from their own funds.

Meanwhile, the CUSAT syndicate has decided to pay pension and salaries from the FD as the government funds have been delayed. The financial crisis has affected the provision of retirement benefits in the Sanskrit and Agricultural Universities too.

It is expected that around Rs 1000 crore can be brought to the treasury by the transfer of university fixed deposits. However, the move is likely to adversely affect the financial freedom of the universities.

Universities unable to raise their own income

Although the government has demanded universities to raise their own incomes, nothing has yielded any results so far.

The universities are supposed to increase their income via research findings leading to production, industry-related projects and the UGC grants for research projects.