Student fees cover just a fraction of costs at DU, JNU and IIT-Delhi amid surging university deficits

Income expenditure has been rising for DU

As Delhi University begins a new admission season, its finances tell a clear story: student fees covered just 16.3 percent of per capita spending in the year ended March 31, 2024, highlighting the rising financial strain at one of India’s largest public universities.

In FY24, DU collected just Rs 2,924 in fees per student, while it spent Rs 17,927. A Moneycontrol analysis shows that the gap between what students pay and what Delhi University (DU) spends per student has widened over the past decade.

While rising subsidies for higher education raise concerns about the sustainability of funding public education, many regard it as a strategic investment by the government to build national capacity, promote social mobility, nurture talent, and support research.

Over the past three years, fees and examination charges have covered just 14 percent of DU’s per-student costs, a decline from the levels seen in FY15 to FY17. Delhi University announced its first seat allocation list for the 2025-26 admission season on July 19.

Even though student fees have risen by 92.2 percent over the past decade, the university’s per-student expenditure has climbed faster, by 94.5 percent. From a surplus of Rs 27 crore in FY14 and Rs 19.9 crore in FY15, the university recorded a loss of Rs 460 crore in FY23 and Rs 60 crore in FY24.

Meanwhile, support in the form of grants and subsidies has expanded. Grants to DU rose 90 percent in a decade, from Rs 460 crore in FY15 to Rs 928 crore in FY24.

Delhi University’s struggles are not isolated. Financial pressures have mounted across India’s top public universities. At Jawaharlal Nehru University (JNU), academic receipts fell 9 percent between FY15 and FY24, while expenses surged 59 percent. For the Rs 8,000 collected per student in FY24, JNU spent Rs 8 lakh—a 60 percent increase over the Rs 5 lakh per student it spent a decade ago.

Government grants to JNU also doubled over the decade to Rs 565.4 crore, helping cover losses.

Indian Institute of Technology-Delhi (IIT-Delhi) witnessed the sharpest jump in central support. Grants to the premier technology institute more than tripled to Rs 810.2 crore over the past decade. Yet, finances remain stretched. Between FY15 and FY24, academic receipts rose 40.5 percent, but spending increased by 93.5 percent. In FY24, IIT-Delhi collected nearly Rs 1 lakh per student but spent more than 11.5 times that amount.

While government-funded institutions face widening deficits, private universities tend to fare better in matching income with expenditure, as they charge significantly higher fees.

At Vellore Institute of Technology (VIT), student fees covered 133 percent of per capita expenditure in FY24. The institute collected Rs 3.86 lakh per student, while its annual spending stood at Rs 2.9 lakh. This was nearly four times the Rs 96,094 charged per student at IIT-Delhi in the same year.

Other private universities reported lower but still substantial cost recovery. At BML Munjal University, per capita academic receipts stood at Rs 2.58 lakh in 2022, covering 68 percent of the Rs 3.78 lakh spent per student. Amity University’s Mumbai campus performed better, with fees of Rs 1.99 lakh covering 86 percent of per-student expenditure in FY24.