01-05-2025
BM Education: BU considers fee and fent hike to overcome financial crisis
Bangalore University (BU) is considering raising rents and course fees as part of efforts to resolve its financial difficulties. The university's annual budget stands at Rs.252 crore, but it has struggled to meet its revenue targets, leading to challenges in internally mobilizing resources. In response, the university is exploring various strategies for financial the potential measures under consideration are increasing the rent charged to institutions using university facilities and raising fees for all types of undergraduate and postgraduate courses, including professional courses such as sales financing. To provide a well-informed report on this matter, the university has formed two committee, chaired by Professor Ashok D Hanjagi and Ravindra Pai, will focus on the financial strategies and decisions that could be implemented to generate additional resources. The committees will include finance officers and other official said, 'Bangalore University is currently dealing with a financial strain following its reorganization into three campuses. The university no longer has significant income sources, and the revenue from the 'Jnanajyothi Auditorium' has been lost. Previously, the university earned considerable revenue from coordination fees from over 700 colleges, but this has now dropped to just 245, with an increasing number of government colleges contributing less than expected.'In an effort to generate more income, the university has raised the rent for 26 institutions using its facilities. A few years ago, the rent was a few hundred rupees, but it has since been revised to Rs.50,000. Additionally, the university requires Rs.100 crore annually to provide pensions for retired staff, but it currently receives only Rs.5 crore from the government. While salaries for staff and faculty are directly funded by the government, other costs are managed through investments, including Rs.500 crore in fixed deposits.'Despite these efforts, Bangalore University has faced difficulties in managing its finances, leading to annual increases of 10% in exam and admission has helped alleviate some financial strain, but the university is still exploring alternative ways to address its fiscal challenges', an official added. The committees are tasked with considering actions such as reducing the budget deficit and exploring measures to increase revenue, such as raising lease rates and building compound walls around the university campus to secure more income.
