Yuvanidhi and the education paradox

Karnataka stands as a progressive and technologically advanced state, outperforming the national average in several social, economic and industrial indicators. However, higher education in the state faces challenges such as dwindling student quality, low Gross Enrolment Ratio (GER) and funding issues. The university density (number of universities per one lakh eligible population aged 18-23) in Karnataka is 1.1, higher than Maharashtra (0.6), Telangana (0.8), Andhra Pradesh (0.9), Tamil Nadu (0.9), Kerala (0.8), and the national average of 0.8. With 43 universities, Karnataka boasts the highest number of universities in South India. In terms of college density, the state has 68 colleges per one lakh eligible population, the highest in the country and more than twice the national average of 30.

Despite having a high education infrastructure, Karnataka’s GER of 36.2 is relatively low compared to Telangana (40), Andhra Pradesh (36.5), Tamil Nadu (47) and Maharashtra (35.2). This indicates that the number of institutions alone may not significantly boost GER. Instead, the quality of institutions, advanced infrastructure and strong affirmative policy interventions are essential to augment GER.

In the coming years, the Karnataka government’s flagship Yuvanidhi scheme may further strain the already low GER. According to the Seva Sindhu portal, 2,57,670 students (51.17 per cent boys and 48.82 per cent girls) have registered for the scheme. These students are involuntarily unemployed and have not enrolled in any post-graduation programmes. Belagavi leads in student registration with 28,674, followed by Kalaburagi (17,035), Raichur (16,082), Bengaluru Urban (15,174) and Vijayapura (14,576). The lowest registrations are recorded in Kodagu (1,586), Bengaluru Rural (2,944) and Ramanagara (3,276).

In contrast, admissions to PG programmes in the majority of universities, particularly in social sciences, basic sciences and commerce, are declining. According to Unified University and College Management System (UUCMS) data, the total admissions to PG programmes in all universities for the academic year 2024-25 amount to 2,57,367, which is less than the registrations for the Yuvanidhi scheme. If this trend continues, it will have a catastrophic effect on GER in Karnataka. The state’s policy should aim to bring these students back into mainstream higher education and promote GER. The objective of improving GER can be accomplished by limiting the Yuvanidhi scheme duration to a maximum of one year instead of two years. Even after completing one year, if the student continues to be unemployed, they should be incentivised to enrol in a PG programme.

This policy will have a dual effect. First, in the initial year, the student will understand the real requirements of the job market and have the chance to take admissions to a PG programme, which will, in turn, enhance job prospects with additional skills and capabilities. Second, it promotes the improvement of GER in the state. The scheme will function both as an unemployment allowance programme and a GER promotional programme. The current two-year maximum duration of the scheme provides unemployment allowance but may not promote GER. After completing two years, if the students wish to return to academics, they may have lost their academic orientation.

Meanwhile, many state universities, particularly new and young ones, lack adequate infrastructure to provide quality education. In 2022-23, out of 19 conventional universities, only 10 received general-grant-in-aid, in addition to salary and pension grants. Only four universities received grant-in-aid for asset creation. The award of general-grant-in-aid declined further in 2023-24, with only four universities receiving it. Only one university received grant-in-aid for asset creation. In the previous budget for 2024-25, only four universities received general-grant-in-aid, and again, only one university received grant-in-aid for asset creation. This declining trend in grants hinders the quality of education, further worsening GER.

With the current university infrastructure, ranking state universities is a futile exercise of comparing unequals; instead, the ranking should be an indicator of the first among equals. Curtailing the Yuvanidhi scheme tenure from a maximum of two years to one year will provide additional funds for the government to enhance the universities’ basic infrastructure and cater to increased enrollment. The forthcoming budget must take on the short-term pain of generously funding universities for the long-term gain of quality human capital.

In 1955, celebrated economist Milton Friedman submitted a memorandum to the Government of India during the second five-year plan, emphasising that expenditure on increasing the productive capacity of human beings is at least as important as industrial investment. A budget with enhanced investment in public universities and institutions will augment human capital, which has a long-term impact on society.

(The writer is assistant professor of economics, Vijayanagara
Sri Krishnadevaraya University, Ballari)

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.