Delhi university Rs 462 crore in the red as student fees rise and UGC grant deficit expands

Delhi University (DU) is faced with a mounting money crisis as its approximated shortfall for financial year 2025–26 touched a staggering Rs 462.4 crore — a sharp 86% rise from last year's shortfall. Although the university experienced a small rise in funds from the University Grants Commission (UGC), the college is not even able to cover basic costs like wages and maintenance cost of regular operations, and the professors are expressing serious concerns about how much further the university will be based on student charges and internal income to stay afloat.

 

As per a Times of India news article, DU's budget placed before the executive council on July 12 shows that although the UGC had sanctioned Rs 473 crore for salaries in FY 2024–25, the actual salary outgo by the university amounted to Rs 478.7 crore, already above the grant by Rs 5.7 crore. The recurring outgo — including maintenance of infrastructure, library, and other essentials — was Rs 544.4 crore against a UGC allocation of Rs 313 crore, leaving an all-encompassing gap of over Rs 248 crore. Projections for 2025–26 are worse still, with a wage bill placed at Rs 540.7 crore and recurring outgo at Rs 683.1 crore, as against an allocation of Rs 488 crore and Rs 323 crore, respectively.

 

Most of DU's internal income now comes from student contributions. This month, DU increased its 'university development fund' by nearly 20% — double the usual annual rise — a move justified as an anti-inflationary measure but criticized as loading on students. Some fee components have risen over 200% over the past three years.

 

The problem is compounded by the plans of DU to scale up its infrastructure under the HEFA model. While the interest of 90% on the HEFA loans is paid by the Ministry of Education, DU bears the remaining 10%. For a cost of Rs 938.3 crore projected, the university would be required to pay interest of approximately Rs 93.8 crore. Faculty members argue that such a model compels DU to continually raise funds — often through fee hikes — to service debt, potentially compromising access and affordability for students.

 

Adding to the anxiety, UGC's grant towards capital expenditure under the Economically Weaker Section (EWS) scheme has fallen significantly — from Rs 32.8 crore in FY 2024–25 to a paltry Rs 10 crore in 2025–26 — while DU's projected expenditure in this head has increased to Rs 60 crore. Internal accounts also suggest the university is planning for Rs 246 crore in revenues from student fees for 2025–26, up from Rs 237.3 crore in the current fiscal.

 

Even as DU continues to close the gap between paltry grants and growing expense with internal revenue, the fate of public higher education and its reach in India remains uncertain.