Education financing of education and loan system in Nepal (07)

Financial Analysis and education loan of Different Universities

Tribhuvan University 
The annual total expenditure of the TU was declining except in 2003/04 during the period from 1999/00 to 2004/05 and reached to Rs 1,986 million in 2004/05 from Rs 2,215.1 million in 1999/00. This is the result of liberalization policy adopted in the higher educational degrees. Under the decentralization policy, adopted since 2000/01, most of the technical campuses, four TU owned research centers and some management campuses and technical institutes were decentralized. They are given block grant from the university. Both academic and financial decentralizations have been done to these campuses / research centers. That’s why; financial details of these campuses/ research centers are not found in the central offices of the university since 2000/01. The annual total expenditure of foreign grants/funds/assistance programmes / projects of the TU had been declining drastically during the period from1999/00 to 2004/05. This indicates the dependency on foreign fund for higher educational degrees development has been declined remarkably.

A largest share of budget of TU goes to Central Office and second largest share to Institute of Humanities and Social Sciences, which cover highest number of TU owned Campuses. The least share goes to Institute of Law, which has few of number of TU owned campuses only. In technical side, the Institute of Medicine demands highest annual total expenditure and education loan. 

The percentage distribution of six yearly averages of expenditures between capital and operational are 16 percent and 84 percent respectively. Operational expenditure is more than five times of capital expenditure.

 
Management is the highest income earning faculty. Its income covered nearly 19 percent of the total expenditure in 2004/05. Education and Humanities and Social Sciences were the second (10.1 percent) and third (9.5 percent) highest income contributing faculties. Forestry was the least (3.8 percent) income generating institute. Thus, their own income generating capacities of these institutes/faculties were very low.  

Before decentralization of technical institutes and research centres, capital expenditures of institutes/research centres except medicine were around 1 percent as of other institutes and faculties. The capital expenditure of medicine was around 5 percent. Medicine was the highest income generating institute, which earned 24.6 percent of the total expenditure. Research centres were the least income generating. The average income generated by these centres was only 1.6 percent. After decentralization, the average percentage of their own income to the total expenditure was 16.3 percent during the period. It was 18.8 percent only in 2000/01 and then it was stable to 16 percent. Even after decentralization, there was no significant change found in the income generation of these institutes /research centres. 

So far central departments of general faculties/Institutes under the Tribhuvan University are concerned; average annual expenditure coverage by income of central departments of science and technology was the highest, i.e., 20.5 percent, which had been lifted up by the highest average annual expenditure coverage by incomes of central departments of M. Tech.(97.1 percent) and Computer (72.3 percent). Similarly, the lowest coverage was 3.2 percent of central department of education. That of central department of management was the modest one (14.2 percent).

Pokhara University
Pokhara University was also heavily dependent on the government grant and donation, which covered 55.9 percent of the total income/total expenditure in 2003/04. This University has only 3 university owned campuses and rests 23 are the privately operated affiliated campuses in 2005/06. On the expenditure side, operating expenses including expenditure on employee’s cost income in 2001/02 to 68.4 percent in 2003/04.