University of Madras Faces Severe Budget Cuts for 2025-26, Threatening Academic and Operational Stability

The University of Madras has introduced sweeping budget cuts for 2025-26 to address its escalating deficit, which rose from ₹101 crore in 2023-24 to ₹132.33 crore in 2024-25.
The University of Madras, a cornerstone of Indian higher education since 1857, is confronting a dire financial crisis as it implements significant budget cuts for the 2025-26 academic year. The reductions, driven by a mounting deficit of over ₹132.33 crore, have ignited dissent among syndicate members, faculty, and students, who warn that the cuts could erode the university’s academic quality, infrastructure, and student services. With only temporary funding approved for April, the institution faces an uncertain future, prompting urgent calls for increased government support to safeguard its legacy.
Details of the Budget Cuts: Over ₹50 Crore in Reductions
The University of Madras has introduced sweeping budget cuts for 2025-26 to address its escalating deficit, which rose from ₹101 crore in 2023-24 to ₹132.33 crore in 2024-25. While exact figures for the total reduction vary, estimates suggest cuts exceeding ₹50 crore across various sectors, based on percentage reductions and prior budget allocations. The specific cuts include:
Academic Departments: A 20% reduction in contingency funds (approximately ₹5 crore), affecting laboratory equipment, consumables, and research resources.
Library Resources: A 30% cut in funding for books and periodicals (around ₹2 crore), limiting access to critical academic materials.
Infrastructure Maintenance: A 40% reduction in building maintenance funds (estimated at ₹10 crore) across the university’s five campuses (Chepauk, Marina, Guindy, Taramani, and Maduravoyal), risking further deterioration of facilities.
Student Facilities: A 50% cut in funding for sports, physical education, and other amenities (approximately ₹3 crore), impacting extracurricular activities and campus life.
Staff Reductions: Downsizing outsourced manpower from 221 to 150 and piece-rate workers from 106 to 75, alongside reducing guest lecturers from 115 to 75 and part-time guest lecturers from 46 to 30, with a cap of 20 teaching hours per month. These measures could save ₹15 crore annually but strain teaching and administrative capacity.
Self-Financing Courses: A shift in revenue-sharing from a 50:50 to a 70:30 model, reducing departmental revenue by 20% (estimated at ₹10 crore), potentially hindering program upgrades.
According to the NIRF report 2025, the median salary for PG 2-year and PG 3-year has been made available the table below provides the salaries for recent years:
Particulars |
Placement Statistics (2022) |
Placement Statistics (2023) |
Placement Statistics (2024) |
---|---|---|---|
Median package (PG 2-year) |
INR 3.60 LPA |
INR 3.73 LPA |
INR 4.20 LPA |
Median package (PG 3-year) |
INR 4.20 LPA |
INR 3.89 LPA
|
INR 4.80 LPA |
In past three years a total of 1424 students have secured placements from Madras University.
The table below provides a breakdown of the no. of students placed each year.
Particulars |
Placement Statistics (2022) |
Placement Statistics (2023) |
Placement Statistics (2024) |
---|---|---|---|
Total Students (PG 2-year) |
1253 |
1292 |
1298 |
Total Students (PG 3-year) |
25 |
28 |
24 |
No. of students placed (PG 2-year) |
440 |
468 |
483 |
No. of students placed (PG 3-year) |
5 |
21 |
7 |
NOTE: The data has been taken from the NIRF report 2025
Operational Costs: Additional cuts to miscellaneous expenses, such as travel and administrative costs, contribute to the overall reduction, estimated at ₹5-7 crore.
The university’s 2025-26 budget was not finalized at the March 28, 2025, senate meeting due to delays in finance committee approval. Instead, a temporary ₹19 crore budget was approved for April to cover salaries, pensions, and minimal maintenance, underscoring the severity of the financial strain.
Syndicate Members’ Outcry
Syndicate members have fiercely opposed the cuts, arguing that reductions of this magnitude—exceeding ₹50 crore—jeopardize the university’s core functions. In a letter to the registrar, they highlighted the impact on faculty recruitment, student facilities, and research capabilities. With only 184 of 540 sanctioned faculty positions filled and 964 non-teaching posts vacant, further staff reductions could cripple operations. “These cuts are a death knell for academic excellence,” a syndicate member stated anonymously. They also criticized the finance committee’s interference in faculty appointments, particularly its push to align recruitment with Teachers Recruitment Board norms, which they deem unsuitable for a research university.
The syndicate has demanded transparency regarding financial irregularities at the Dr. MGR Centenary Centre for Social Development Studies and urged the Tamil Nadu government to provide a one-time grant of ₹200 crore to address the deficit, pension arrears, and Seventh Pay Commission obligations. Without such intervention, they warn, the university risks losing its NAAC A++ accreditation and its 39th ranking in the NIRF University category for 2024.
Administrative and Governance Challenges
The absence of a permanent Vice-Chancellor since August 2023 has exacerbated the crisis. A convenor committee, led by Higher Education Secretary C. Samayamoorthy, has struggled to navigate budget approvals and strategic planning. Former Union Minister P. Chidambaram has criticized the state government’s handling of the situation, citing governance lapses and delays in budget finalization. The Tamil Nadu government increased its allocation from ₹33 crore in 2024 to ₹52 crore in 2025, but this falls far short of covering the ₹132.33 crore deficit or offsetting the ₹50 crore in cuts.
The Institute of Distance Education (IDE), which generated ₹63 crore in 2024-25, remains a vital revenue source, but its potential is constrained by the broader financial crisis. Proposals to revise student fees, unchanged for nearly two decades, have been stalled due to concerns about accessibility, leaving the university heavily dependent on government grants.
Impact on Students and Faculty
The budget cuts have sparked widespread concern among stakeholders. Postgraduate student Priya S. lamented, “A ₹2 crore cut to library resources and ₹5 crore from labs will cripple our research. We’re already using outdated equipment.” Faculty members fear that reduced staff and resources will lower educational quality, potentially deterring prospective students. The ₹3 crore cut to student facilities has drawn particular ire. “Sports and extracurriculars are essential for a vibrant campus,” said Rajesh K., a B.Sc. student. “Cutting ₹3 crore here feels like prioritizing survival over students.”
The 20% revenue reduction for self-financing courses, worth ₹10 crore, threatens the viability of programs designed to meet industry demands. Faculty warn that departments may struggle to innovate without adequate funding, further impacting the university’s reputation.
Historical Context and Path Forward
The University of Madras has faced deficits for years, with ₹84.92 crore reported in 2019 and over ₹100 crore in 2021-22. Rising wage and pension costs, stagnant fees, and declining grants have fueled the crisis. The current ₹50 crore in cuts represents one of the most aggressive austerity measures in recent history, prompting calls for systemic reforms. Faculty and syndicate members advocate for fee revisions, industry partnerships, and alumni fundraising, but emphasize that a substantial government grant is essential for recovery.
The university’s ongoing NAAC re-accreditation and NIRF ranking aspirations hang in the balance. A failure to address the deficit could diminish its standing as a leading research institution. Public sentiment on platforms like X reflects growing frustration, with users criticizing the state government’s underfunding of public universities and calling for accountability.
The University of Madras is at a critical juncture as it implements over ₹50 crore in budget cuts for 2025-26. While aimed at addressing a ₹132.33 crore deficit, these measures threaten the institution’s academic mission, infrastructure, and student experience. As stakeholders demand a ₹200 crore government grant and internal reforms, the university’s ability to sustain its 168-year legacy as a beacon of knowledge is under threat. The coming months will determine whether this historic institution can navigate its financial woes and emerge stronger.
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Madras University has not yet published its placement report, In the meantime students can have a look at the table below presents the placement report of Madras University according to the NIRF report 2025:
Particulars
Placement Statistics (2024)
Total students
1298 (PG 2-year)
24 (PG 3-year)
No. of students placed
483 (PG 2-year)
7 (PG 3-year)
Median package
INR 4.20 LPA (PG 2-year)
INR 4.80 LPA (PG 3-year)
NOTE: The data has been taken from the NIRF report 2025