19th December, 2008
Vice-Chancellors of Universities,
Directors of Institutes,
Rectors of Campuses.
ALLOCATION OF THE GOVERNMENT GRANT AND PREPARATION OF THE BUDGET FOR 2009
- The Government grant for 2009 requested from the Treasury based on the draft estimates of the Universities and Higher Educational Institutions, was as follows:-
Amounts requested Rs.’000
(a) Recurrent EstimatesPersonal Emoluments 9,389,685
Other Recurrent expenses 4,523,513
13,913,198
Deduct
Income from internal sources 669,737
Recurrent grant requested from the Treasury 13,243,461
========(b) Capital Estimates
Rehabilitation & improvement of Assets 1,939,719
Acquisition of Fixed Assets 3,103,885
Information Technology development 200,000
Building Construction Projects 8,839,314
Capital grant requested from the Treasury 14,082,918
======== - After negotiations held with the Treasury in September 2008, the Treasury agreed to the following allocations for 2009.
Amounts initially agreed by Treasury
Rs.’000
(a) Recurrent budgetPersonal Emoluments 8,000,000
Other Recurrent expenses 3,845,737
11,845,737
Deduct
Income from internal sources 669,737
Recurrent grant approved by the Treasury 11,176,000
========(b) Capital budget
Rehabilitation & Improvement of Assets 465,000
Acquisition of Fixed Assets and IT development 900,000
Building Construction projects (continuation
Projects only) 4,586,000
Capital grant initially approved by Treasury 5,951,000
======== - Revision of the Capital grant
- The University Grants Commission, at its meetings held on the 20th November and the 11th December 2008, approved the allocation of the Recurrent and the Capital grants among the Higher Educational Institutions.
- Allocation of the Recurrent grant
(a) In October 2008, the Treasury notified the Commission that the capital grant has been revised to Rs. 4,100 million as opposed to Rs. 5,951 million, earlier agreed upon.
(a) When the votes of the Higher Education Ministry were debated in Parliament in November, 2008, it was announced that an extra capital grant of Rs. 1,050 million (in addition to Rs. 4,100 million) will be allocated for the following purposes:-
Rs.’000
b (i) For new development projects recommended by the
Department of National Planning 950,000b (ii) Rs. 50 million each for the golden jubilee celebrations of
the Universities of Kelaniya and Sri Jayawardenapura 100,000
1,050,000
=======
5 (i) Allocations for personal emoluments were based on actual expenditure upto August 2008, with a mark up of 3% for annual salary increments.
5 (ii) The Cost of Living Allowance has been estimated at the current rate of Rs. 3,500/- for clerical and allied grades, and at Rs. 2,875/- for academic and administrative grades, plus further increases of Rs. 375/- payable in January and July 2009.
5 (iii) Allocations have not been made for filling vacancies or for new cadre positions for 2009, but the Treasury has agreed to provide additional grants for this purpose, from a special vote in the Treasury.
5 (iv) Recurrent expenditure (other than personal emoluments) has been allowed a 15% mark up over the actual expenses incurred during the period January to August 2008.
5 (v) Special allocations have been included for additional student intake and for new degree programmes, as detailed in the Schedule.
5 (vi) The Open University has been allocated Treasury grants to cover the actual cost of personal emoluments plus an additional Rs. 20 million to meet part of its non-salary costs.
6 Allocation of the Capital grant
6 (i) Rehabilitation and improvement of Capital Assets
The Treasury has provided approximately 24% of the requirements for rehabilitation work planned for 2009.Special attention has been paid to major rehabilitation works already undertaken, in allocating funds under this project.
6 (ii) Acquisition of Fixed AssetsThe funds provided for acquisition of fixed assets, including office furniture and equipment, lab and teaching equipment, Library books and sports goods, amount to approximately 25% of the total requirements under this project.
Rs. 100 million out of the total grant has been reserved for IT development. In allocating the balance funds, special consideration was given to the spending capacity of Institutions, student enrolment in 2009, and strengthening the asset base of the new universities.
6 (iii) Construction of Buildings
As explained in paragraph 3(a) above, the total allocation for capital expenditure was revised to Rs. 4,100 million, and accordingly, the total available for construction of buildings was revised to Rs. 2,735 million.
A block allocation is provided to all HEIs, so that the funds may be distributed internally according to the priorities of the on going building projects listed in the Annex.
The special fund of Rs. 950 million allocated for new development projects. (Pl. see paragraph 3 b(i) above) will be retained with the UGC, until the priority development projects are identified by the Commission.
7 The funds allocated to your Institution for the year 2009 are shown in the Annex.
8. Please submit the Budget for 2009, in formats A,B & C, on or before the 9th January 2009, with copies to the Director General, Department of National Budget.
Please note that the standard formats should not be changed by the HEIs, for what ever reason.
Prof. S.V.D.G. Samaranayake
Chairman
Cc:
- Secretary/Education
- Chairman/UGC
- Vice-Chairman/UGC
- Secretary/UGC
- Financial Controller
- Director/IDD/UGC
- Chief Internal Auditor/UGC
- Accountant (Higher Education Division)
- Registrars of Universities
- Bursars of Universities
- SAR/AR/of Institutes/Campuses
- SAB/AB of institutes/Campuses
- Accountant/UGC
- Snr.Asst. Accountant/UGC
- Snr.Asst. Secretary/Supplies & Administration/UGC
- Auditor General
- Govt. Audit Superintendent /UGC
- Govt. Audit Superintendent/Universities
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