PARLIAMENT QUESTION: UGC Funding and Institutional Autonomy

Executive Summary This report details the Ministry of Education’s financial allocations to the University Grants Commission (UGC) and the transition of funding schemes for higher education institutions between 2021 and 2026. It highlights the launch of the Pradhan Mantri Uchchatar Shiksha Abhiyan (PM-USHA) in June 2023 and the introduction of the Viksit Bharat Shiksha Adhisthan Bill on December 15, 2025. The document serves as a formal parliamentary response regarding institutional autonomy, regulatory standards, and infrastructure support.

Key Points / Main Content

UGC Funding and Expenditure (2021-2026)

• Total Allocation: Funds released to the UGC increased annually from Rs. 13,839.43 crore in 2021-22 to Rs. 20,527.43 crore in 2025-26.
• Institutional Distribution: Between 2021-22 and 2025-26, the UGC released Rs. 73,148.65 crore to Central Universities and Rs. 2,743.04 crore to Deemed Universities.
• Expenditure Efficiency: The UGC maintained high utilization rates, with expenditure closely tracking released funds across all reported years.

Transition from RUSA to PM-USHA

• RUSA Objective: Launched in 2013 as a Centrally Sponsored Scheme to provide funding to State Higher Educational Institutions for mass access and quality standards.
• PM-USHA Launch: The third phase of RUSA was launched in June 2023 as PM-USHA for the period 2023-24 to 2025-26.
• Focus Areas: Support is directed toward strengthening infrastructure, including the construction of hostels, laboratories, and academic/administrative buildings.
• Central Share Releases: Funding released to States/UTs under these schemes saw a significant increase to Rs. 864.25 crore in 2025-26, with Rs. 507.00 crore released as of August 6, 2026, for the 2026-27 period.

Funding Policy for State and Private Universities

• Development Grants: Following the 12th Plan period, the UGC no longer provides development grants to State Universities.
• Reimbursement Basis: Funding for State and private universities is restricted to the settlement of reimbursements for previously sanctioned UGC schemes, totaling Rs. 931.44 crore from 2021-2026.
• Specific Exceptions: Punjab University, as an Inter-State Body Corporate, received a fixed salary grant of Rs. 1,818.46 crore during the same period.

Regulatory and Legislative Reforms

• UGC Regulations 2018: Sets minimum qualifications for the appointment of teachers, librarians, and directors of physical education to maintain higher education standards.
• National Education Policy (NEP): Envisages a "light but tight" regulatory framework focused on audit, public disclosure, and institutional autonomy.
• Viksit Bharat Shiksha Adhisthan Bill, 2025: Introduced in the Lok Sabha on December 15, 2025, and subsequently referred to a Joint Committee of Parliament to promote innovation and empowerment.

Impact Analysis

Central and Deemed Universities Impact: These institutions are the primary beneficiaries of UGC funding, receiving over Rs. 75,000 crore combined over five years. Action Required: Ensure continued compliance with UGC expenditure guidelines and reporting standards.

States and Union Territories (Higher Education Departments) Impact: States are now primarily funded through PM-USHA for infrastructure rather than direct UGC development grants. Action Required: Direct funds toward specific infrastructure projects such as laboratories and hostels to improve institutional access and quality.

University and College Academic Staff Impact: Staff appointments and service conditions are strictly governed by the UGC Regulations notified in July 2018. Action Required: Candidates and institutions must ensure all appointments meet the prescribed minimum qualifications and service conditions.

Joint Committee of Parliament Impact: The committee is currently reviewing the Viksit Bharat Shiksha Adhisthan Bill, 2025. Action Required: Review the legislative framework to align with the NEP’s goal of a “light but tight” regulatory environment.