Acute Financial Crunch: University Of Madras Forced To Pay Salaries From Pension Fund As State Government Did Not Clear Grant-In-Aid Proposal

Facing an acute financial crunch, the University of Madras had to pay salaries and pensions for the month of May by withdrawing money from its Endowment and Contributory Pension funds.

The crisis occurred due to the state government not clearing the grant-in-aid proposal sent by the university to the Higher Education department.

According to a report in The Hindu, while the university needed around Rs 18 crore for meeting its expenditures on salary, pensions and other routine matters, it had only Rs 5 crore in its bank accounts, forcing it to use money from the above mentioned funds.

It also used Rs 7.6 crore from short term deposits maturing in May 2023, that were made using these funds.

Delays in release of the Block Grant (which is used to pay the salary of staff in sanctioned posts) and non-reimbursement of payments to temporary staff, have ruined the finances of the university, stated the report.

The clearance of another grant of around Rs 11 crore is also pending with the state government.

Criticising the Dravida Munnetra Kazhagam (DMK) government, former chief minister O Panneerselvam (OPS) said that it is a shame that the finances of a premier institution of the country have been pushed to the brink. He urged Chief Minister MK Stalin to intervene and redress the issue at the earliest.