Mangalore University Confronts Record Rs 68.3 Crore Deficit Amid Financial Strain
Mangalore University has unveiled its highest deficit budget to date, amounting to a staggering Rs 68.3 crore, with the primary financial burdens stemming from the international hostel and pension-related obligations. Vice-chancellor PL Dharma disclosed these figures during the fourth general academic council meeting held on Tuesday, highlighting a persistent trend of escalating expenditures coupled with insufficient government support and lagging internal revenue generation.
Root Causes of the Financial Crisis
According to university officials, the deficit has been a recurring issue over the past four years, despite implementing various cost-cutting measures such as reducing contract staff and trimming other expenses. The current shortfall marks the most severe in the institution's history, underscoring deepening financial woes.
Of the total deficit, approximately Rs 38 crore is directly linked to the international hostel, while around Rs 28 crore is attributed to pension and other retirement benefits. The vice-chancellor emphasized that the university has urgently sought substantial financial assistance from the state government to manage these mounting obligations. Specifically, Mangalore University requested about Rs 40 crore to cover pension and related retirement benefits, but the government sanctioned only roughly half that amount, imposing stringent guidelines on its utilization.
Additional Pressures and Strategic Responses
The financial strain is further exacerbated by rising expenditure on guest faculty salaries, which are being paid from the university's internal resources, compounding the burden already imposed by pension payments. In response, the university is exploring strategic measures to curb costs, including offering only those courses that secure more than 15 admissions and adopting a school concept aimed at significantly reducing human resource expenses.
Dharma pointed out that the financial pressure has intensified due to a sharp decline in admissions, partly caused by affiliated colleges transitioning to autonomous institutions or deemed universities, which has eroded the university's revenue base. He also cited the absence of adequate government funding as a critical factor hindering financial stability.
Historical Deficit Trends and Future Outlook
The university's deficit trajectory reveals a concerning pattern: it stood at Rs 1.8 crore in 2023-24, surged to Rs 21 crore in 2024-25, and then climbed to Rs 37 crore in 2025-26, before nearly doubling to the current record level this year. This escalation underscores the urgent need for intervention to prevent further deterioration of the institution's financial health.
As Mangalore University navigates this crisis, stakeholders are closely monitoring developments, with hopes pinned on enhanced state support and effective internal reforms to restore fiscal balance and ensure the continuity of academic excellence.
