THREE BUDGET WISHES FOR INDIAN VARSITIES

IMAGINE a university managing to pay its faculty salary and covering its academic infrastructure operational expenses without having to rely on tuition fees.

- S VAIDHYASUBRAMANIAM

IMAGINE a university managing to pay its faculty salary and covering its academic infrastructure operational expenses without having to rely on tuition fees. Imagine a university able to finance its long-term capital expenditure through access to low-cost debt repayable over a longer duration. Imagine a university's entrepreneurial test-bed connected to a talent pipeline to successfully push ideas from lab to market. Imagine a university able to provide student scholarships without relying on external support agencies. Re-imagine all of this happening for Indian universities that are an integral part of Viksit Bharat in 2047.

Let me begin by plugging the stentorian chorus demanding a spend of 6 percent of GDP on education. Comparing our higher education budget with those in the US, UK, Germany or Japan to build the case is like forcing a street racer on an F1 circuit. These countries have a tax-GDP ratio of 25-40 percent, and hence the capacity to allocate more.

A growing India, with a tax-GDP ratio of 18 percent and burgeoning priorities elsewhere, cannot afford such a share. It doesn't mean education is not important; but also important is the realisation of the larger public good that private higher educational institutions (HEIs) deliver as a partner in India's progress—and their functions can be accelerated through budget catalysts.