A STUDY ON FINANCIAL MANAGEMENT IN HIGHER EDUCATION IN INDIA

Abstract

The purpose of this article is to examine the current funding pattern for higher education in India and to discuss the appropriateness and feasibility of several alternative funding strategies. In India, higher education is mostly sponsored by the government. However, because higher education benefits not just society as a whole, but also individuals in particular, and because it attracts the relatively more privileged segments of society, there is a case can be made for moving the financial burden from the social to the individual sphere. Given resource restrictions and equality considerations, it is claimed that funding higher education primarily through general tax money may not be a desirable approach in the long run. As a result, some alternative policy options are addressed, such as public funding of higher education, student loans, graduate tax, student fees, and the role of the private sector. It is maintained that, among the options, a discriminating pricing mechanism would be more efficient and equitable. While the government must continue to carry a major share of the cost of higher education due to socioeconomic and political realities, attempts should be made to develop a funding model that incorporates a variety of techniques rather than relying on a single one. It is also argued that fee and subsidy strategies should differentiate across different layers and types of higher education.