Last Update: February 03, 2023, 16:36 IST
There are 20 IIMs across the country (file photo)
However, top institutes feel that the move may harm new IIMs, but not second or first generation IIMs.
The Indian Institutes of Management (IIMs), which are among the country’s renowned business schools, have faced budget cuts this year as the Center has halved their grants.
However, top institutes feel that the move may harm new IIMs, but not second or first generation IIMs.
There are 20 IIMs across the country.
The budget for 2023-24 was announced by the Finance Minister Nirmala Sitharaman On Wednesday, funding for the IIMs was slashed to Rs 300 crore from the Revised Estimates (RE) of the previous fiscal year by Rs 608.23 crore, a drop of 50.67 per cent, even though the net budget for the financial year 2023-24 has increased . 8 percent amounting to Rs 44,094 crore for the higher education sector.
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As per the Budget Estimates (BE) of 2022-23, an amount of Rs 653.92 crore was allocated to IIMs.
According to Ashok Banerjee, director of IIM Udaipur, the government may send a signal to IIMs to be more innovative in funding their development plans.
“The cut in budget allocation for IIMs may hurt the new IIMs, though the latest one is about seven years old,” Banerjee said.
However, through this cut, the government would perhaps encourage the leadership of individual IIMs to promote the use of PPP model and encourage the industry to be more innovative in funding its development plans to support educational institutions of national importance through CSR initiatives and others. sending signals to happen. charity,” he said.
Major cuts in the budget for IIMs have been made under the head Gross Budgetary Support (GBS).
As per RE for 2022-23 the allocation for this purpose was Rs 296.81 crore while BE allocation was Rs 323.50 crore. For the new financial year (2023-24), the allocation under the item has been reduced to Rs 15.17 crore.
IIM Rohtak has never depended on any government grant. We generate our net revenue from various off-campus training programs and tuition fees. Though we are a second generation IIM, the paucity of funds will not affect us. New generation IIMs may have to depend on government grants,” said Dheeraj Sharma, director, IIM Rohtak.
Ajit Parulekar, director, Goa Institute of Management (GIM), said there may not be much to offer for B-school education in India, but the Finance Minister talking about the National Data Governance Framework was one of the highlights of the budget. .
This framework will allow us to have access to a lot of non-personal, anonymous data. Research-intensive institutions will greatly benefit from this as one of the biggest hurdles that needs to be overcome while conducting research is the paucity of data,” he said.
‘ He said, ‘The only disappointment is that the budget for education may have been increased, but it is minor. This is very less for a country which wants to develop rapidly. We are underspending on healthcare and education by a huge margin.
Ashutosh Dash, Associate Professor, Accounts and Finance, Management Development Institute (MDI), Gurugram said, “Though the provisions made in the budget will improve education infrastructure across the country, the gross budgetary support has come down by Rs 323.5 crore The growth and development of 15.17 crore newly established IIMs in 2022-23 to 2023-24 can have a huge impact. Additional Rs 4,235.74 crore will be provided to the best institutes and universities of the country to truly implement NEP 2020, he added. have been given, but what could be the share of IIM, it is not yet known.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)