Karachi: Karachi University's administration seems to have taken a grave financial risk when it increased salaries of its employees from its own resources this July, ignoring the huge budget deficit that it claims has risen from Rs140 million in 2007-08 to Rs340.351 million in 2008-09.
With this increase in the salaries, the budget shortfall would further increase next year and could lead to a major increase in fees as well as to a compromise on student facilities, according to sources.
It is worth mentioning that the university's budget document 2009-10 is showing a 20 per cent increase in revenue from own resources. These resources, according to teachers, comprise the university's income from student fees under different heads.
The deficit, according to the KU's budget document, is on account of salary increases of 40 per cent during the last several years for which no supplementary grant was provided. The increase in the cost of utilities has also affected the institution's cash position. The university has not yet received the grant of this quarter starting from July.
The federal government had announced a 15 to 20 per cent ad hoc relief in pay and allowances along with pension in this year's budget. However, no funds have been released to the Higher Education Commission (HEC) for this purpose.
Contrary to what the KU is doing, the NED University of Engineering and Technology refused to increase the employees' salaries till the finance division releases funds.
Justifying the increase in the employees' salaries, the KU director finance, S.M. Khalid, said that the KU was a big university with bigger problems and pressures. "Everybody is being affected by the rising inflation. We have asked the HEC to compensate and provide us with a supplementary grant."
The finance managers at the KU believe that the HEC would provide the said amount and there would not be any increase in student fees other than what is proposed in the budget.
At present, the university has about 500 teaching and 2,500 non-teaching staff whose increase in salaries and allowances cost Rs78.012 million. Apart from these expenses, the university has requested an additional grant of Rs47.4 million from the HEC.
Against the proposed recurring budget allocation of Rs1,350.342m, the HEC has approved a sum of Rs981.71 million.
Budget loopholes
An interesting aspect of the budget episode at the KU is that the proposed budget document, prepared by its budget officers, is sent to the HEC without getting it first approved by the finance committee, the syndicate and the senate. This practice has been in vogue for many years while no audit report for years 2006, 2007 and 2008 has been presented in the relevant statutory forums so far.
The senate, which, according to the university code, considers and passes a resolution on the annual report, the annual statements of accounts, and the annual revised budget estimates, has not held any meetings in the last three years and the budget is approved by the syndicate.
According to university teachers, though the practice is not against the university code, as it gives authority to the vice chancellor and the chancellor to take decisions on behalf of the syndicate and the senate, respectively, it definitely opens the door for manipulation and make the process less transparent.
The issue was raised in the last syndicate meeting held on July 25, which decided to set up a committee to bring improvements in the budget-making exercise.
Commenting, the syndicate's nominee in the finance committee, Prof Dr Shakeel-ur-Rehman Farooqui, said: "The committee set up by the syndicate has started working and for the first time the departments have been involved in the budget-making process, as they have been asked about their requirements and expenses in writing. The body will ensure regular meetings of the finance committee that will help prepare a better budget."
About the audit reports, he said the matter was taken up in the last syndicate's meeting and it was decided that the audit reports would be presented before the finance committee after they were finalised by the director-general audit, Sindh.
In reply to a question on long delays in the release of a recurring grant, Professor Dr G.A. Miana, the HEC nominee in the KU syndicate, said that the delay was in fact on the part of the government and not the commission.
On the KU's deficit budget, he said: "It's all manipulation of numbers. The universities show deficit to get more grant. That's all."
Students' interests
According to KU teachers, there has been a sharp increase in student fees in recent years along with the decline in government funding. For instance, the monthly tuition fees of MS/PhD programme has been increased 10 times in three years while its admission fees has been raised eight times.
According to the budget document 2009-10, there was an 11pc increase in revenue from own resources from2006-07 to 2008-09 and there would be a further 20pc increase in 2009-10. The university is expected to earn Rs490 million in 2009-10 as compared to the last year's income of Rs413.650.The university spent only 3.27 per cent of the total released grant of Rs631.645 in 2007-08 on research and survey; 2.68 per cent on the purchase of chemicals and glassware; 2.56 per cent on books and journals. Almost half of the amount was spent on pay and allowances.
"A sorry state of affairs obtains at the university. The administration is increasing fees every year, but providing few facilities to students. The meagre lab recurring grant is a shame which is received after much delay. It is unfortunate that the university has paid no attention to improving old departments when it was getting huge amounts from once thriving HEC. Instead, it set up a number of new infrastructures without developing a sustainable plan for their smooth functioning," remarked a teacher. Dawn
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