HYDERABAD, Nov 11: The managements of public sector universities of the province find it hard even to stay afloat after drastic cuts in the Higher Education Commission (HEC) grants by finance ministry, forcing at least three universities to seek bank overdrafts to meet day to day expenses.

The universities of Sindh, Mehran and Khairpur, which have obtained overdrafts, fear the massive cuts will jeopardise the various development projects they have undertaken to extend enrolment and bring to a halt academic and research activities.

Besides, they have to bear with deficits in the recurring expenditures. For instance, Sindh University has to make do with a deficit of Rs102.513 million in its recurring expenditures of 2007-08 budget against a total outlay of Rs1,372.331 million, which includes HEC’s grant of Rs690.171 million.

Out of the HEC grant, the university received Rs548.204 million, with a cut of Rs141.967 million, a 20.5 per cent reduction.

With the university having to pay pension and salaries with 20 per cent rise, it comes to Rs125 million that is yet to be released. The university received Rs65.631 million with 68 per cent cut against last quarter’s installment of Rs207.5 million of the closing fiscal year.

The university management believes that carryover deficit will be Rs247 million in 2008-09 with budgetary estimates standing at Rs1731.952, including an unchanged grant of Rs690.171 million given in last financial year.

For the first quarter of current fiscal year, the university had been given only Rs137 million against an expenditure of Rs385 million, forcing the management to go for an overdraft of Rs120 million with mark-up.

“We simply don’t know how to handle the present situation. Should we go for closing some of the departments and expel people. But it will lead to a big political issue and is thus not workable, or should we have to stop research activities?

“What about having to hold examinations, ensure payment of salaries, pension and increment that will come due in December this year,” said the vice-chancellor.

Sindh Governor Dr Ishratul Ebad Khan was informed about cuts in grant during his recent visit of the three universities in Jamshoro and made a promise to take up the issue with the president and prime minister because the governor’s office was concerned only with administrative affairs of the universities.

His word of advice for the VCs, in the meantime, was to prioritise their expenditures and manage them till current economic meltdown subsides in the country.

Like the rest of society, the universities’ expenses have jumped in recent past in the wake of high inflation, raise in tariff of electricity, gas and prices of petroleum products.

With addition of infrastructure for enhanced academic opportunities in major universities, requirement for hostels have also increased, hence more expenses and recurring costs.

The Mehran University of Engineering and Technology is reported to have obtained Rs115 million overdraft with 18 per cent mark-up after Rs86 million cut in the Rs126 million grant of its last installment of the closing financial year.

“Only Rs40 million were released to us out of Rs126 million. Then there is 20 per cent rise in salary and pension which is calculated at Rs65 million,” said a university source.

The university’s current fiscal year’s budget has a built-in deficit of Rs151 million.

The university received only Rs30 million for one of the five schemes approved by the Executive Committee of National Economic Council (Ecnec). The scheme’s actual cost was estimated at Rs1486.148 million. Total estimated cost of the five schemes comes to Rs2,494.790 million.

“Against Rs2,494.790m, Rs486.900 million are released till Sept 30, 2008 while an allocation of Rs251.430 million under Pubic Sector Development Program (PSDP) 2008-09 for MUET is around Rs251.430 million. “Again, the funds’ release is just Rs27 million for the first quarter,” said an MUET official.

Major components of the schemes in question pertain to expenditures on postgraduate students, infrastructure and availability of equipment. “Around 62 faculty members are doing PhDs abroad on a four year’s course and suspension of their funds is the only option,” said the source.

In a communication dated Sept 11, the universities were asked “to exercise due caution before undertaking any new financial liability of implementation of development projects,” said a source.

Infrastructure development will be affected by 75 per cent after revised cost estimates. “We are left with only one option, and that is to limit the scope of our schemes,” he said.

The VC’s of Sindh held a joint meeting recently and sent a representation to the president and prime minister about the problem but they have not yet received any response.