New Delhi: Finance Minister Nirmala Shiharaman has announced a decrease of 50.67% in the funding of the Indian Institute of Management (IIMs) as a part of Union Budget 2023-24 released on February 01, 2023. With this, the amount has been reduced to INR 300 Crore.
Despite an overall increase of 8% in the higher education budget, the government has reduced the funding for IIMs in the Union Budget 2023-24. While comparing the data, the previous year's revised estimate budget was INR 608.23 Crore, which has now dropped by half.
In the Budget Estimates (BE) released for the 2022-23 session, the IIMs in India were allotted a grant of INR 653.92 Crore, which was later revised to INR 608.23 Crore. The decrease in funding was made under the Gross Budgetary Support (GBS) head.
Talking about the Union Budget 2023-24, Director of IIM Udaipur, Ashok Banerjee said, "The cut in budget allocation for the IIMs may hurt the newer IIMs, the latest IIM is about seven years old though.
"Through this cut, the government perhaps is sending signals to IIMs to be more innovative in funding their growth plans like promoting the use of the PPP model and also to the industry to support academic institutions of national importance through CSR initiatives and other donations," he added.
Referring to the cut, the Director of IIM Rohtak, Dheeraj Sharma shared that the institute will not be affected by the dip in funding as the revenue is generated through various training programs as well as tuition fees. However, new generation IIMs might have to rely on government grants.
Ajit Parulekar, Director of GIM Goa said, "This framework will allow us to get access to non-personal, anonymous data. Research-intensive institutions will benefit greatly from this because one of the biggest hurdles one needs to overcome during the conducting of research is the lack of data”.
"The only disappointment is that even though there is an increase in the budget for education, it is marginal. It is very low for a country that aims to grow fast. We are underspending on healthcare and education by a very large margin”, he further added.
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