NEW DELHI, July 30: The University Grants Commission (UGC) has taken strong exception to the Finance Ministry's proposal to reduce subsidies for higher education from 90 per cent to 50 per cent over the next three years. Expressing concern, the UGC chairperson has stated the need for a white paper.As opposed to elementary education, the discussion paper on ``Government Subsidies in India'' prepared by the Ministry of Finance, classifies higher education in the list of ``Non-merit Goods/Services'' and excludes it from subsidies on the basis that the benefits in this case, accrue principally to the recipient.The paper suggests that the subsidy for higher education should be reduced from 90 to 50 per cent in the next three years with a further goal of reducing it to 25 per cent in another two years. Apart from the justification that benefits accrue to the recipient, the paper states that the user charges should be increased. They feel that this will increase the rate of cost recovery as well as reduce the quantity of the demand.The paper further mentions that most subsidies to higher education accrue predominantly to the better off sections of the society.The UGC officials, on the other hand, say that any subsidy on education cannot be for a limited period and say that it will have to continue to be the state responsibility at all times, as it is in the case of higher education in all countries.They also say that higher education is the source of human resource development which serves all the sectors of the society.Stating their objections, UGC officials have observed that the paper overlooks the fact that almost the entire progress in the last 50 years has been made possible by the planning and the work of the intellectuals who have been the beneficiaries of higher education.They further state that an increase in user charges so as to reduce the demand is hardly a reason for advocating an increase in fees. ``India already has one of the lowest access rates for higher education, with less than 6 per cent of the eligible age-group (18-23 years) pursuing higher education, as compared to nearly 50 per cent in the USA.''However, even the UGC officials agree that there is a need for an urgent enhancement of fees, with a simultaneous provision of loans and scholarships for the financially weak and deserving students.Dismissing the statement that benefits of subsidies accrue to the better-off sections of the society, members of the UGC state that ``it is a distorted view arising from the personal experience of those living in metropolitan cities. In fact, a study carried out sometime ago indicates that even in Delhi, the majority of college/university students come from lower income group.''They have also said that ``it is patently unacceptable that subsidies should be governed by economic considerations alone. This will leave out education, health and many other areas where social objectives demand that that government subsidies be given.''
