Andhra: Financial Crisis Hits University Staff Amid Delayed Salaries

Staff members at state universities in Andhra Pradesh are grappling with mounting financial distress due to repeated delays in salary payments, leading to growing uncertainty each month. The hopes of timely payments after the change in government have been dashed as salaries remain unpaid despite assurances. The financial constraints faced by these institutions have intensified, primarily because the government has not disbursed block grants on time. Even when funds are allocated, they fail to meet the escalating expenses of the universities.

While the NDA-led state government has managed to streamline financial processes in other sectors, universities remain a glaring exception. The situation has become dire as these institutions can no longer rely on their reserves to pay salaries in advance, as was done in previous years. Reports indicate that funds were diverted to government accounts under the previous YSRCP administration, further complicating the crisis.

Sri Venkateswara University (SVU), one of the most prestigious institutions in the state, has become a focal point of this financial turmoil. Staff members and pensioners are anxiously awaiting their salaries, which have been delayed indefinitely this month. The December 2024 salary payment was only made in the first week of January 2025, while previous payments for October and November 2024 were delayed until mid-December. With an annual salary and pension requirement exceeding Rs 200 crore, SVU only received Rs 140 crore in the previous fiscal year, resulting in a significant shortfall. This year’s allocation of Rs 226.38 crore has proven inadequate, as the disbursement has been staggered in phases.

SVU’s Registrar, Professor M Bhupathi Naidu, confirmed that the university has appealed to the state’s Education Minister and officials from the higher education department for financial assistance. The university requires between Rs 20 to 25 crore monthly to cover salary expenses, with Rs 10 crore allocated solely for pensions. If the necessary funds are not received by Monday, the university administration may need to explore alternative solutions. Moreover, payments can only be processed through the Comprehensive Financial Management Services (CFMS), which requires a valid budget to authorize bill payments.

Non-teaching staff and pensioners are bearing the brunt of the financial crisis. The SVU Non-Teaching Staff Union has announced that it will hold daily half-hour protests starting Wednesday if the issue is not addressed. Union president G Sridhar criticized the prolonged financial strain that has lasted for six months, despite repeated promises from the government. Additionally, the university health center is facing shortages of essential medicines, further exacerbating the problems faced by staff and pensioners. The non-payment of salaries, coupled with the unavailability of medicines, has created a “double whammy” situation for these individuals.

A senior professor expressed concerns over the government’s lack of attention to higher education, warning that staff shortages and financial instability could undermine the future of these institutions. He urged the authorities to distinguish themselves from the previous administration by ensuring timely salary payments and providing sustainable financial support for universities.

In a bid to resolve the issue, SVU Vice-Chancellor Prof. CH Appa Rao and Registrar Prof. M Bhupathi Naidu met HRD Minister Nara Lokesh at Tirupati airport on Sunday, where they submitted a memorandum outlining the salary issue and current financial difficulties. The minister reportedly responded positively, assuring the university officials that the matter would be resolved promptly.