Odisha Free Education Scheme Faces Cash Flow Crisis Due to Fund Release Delays

Odisha has been implementing a free education scheme, Gyanodaya – Shiksha Ru Samruddhi, ranging from KG to PG. After three months, educational institutions are reportedly facing a cash-flow crisis. This issue is particularly acute in unaided and government-aided colleges, where staff salaries and operational costs are incurred without student fees. The state government committed to spending Rs 895.57 crore in the first year, with the first installment of Rs 9.56 crore released to higher education institutions.

The challenge centers on the timing and quantum of fund releases. The remaining government funds are proposed to be released in staggered installments of 15%, 25%, 25%, and 25% during the academic year. College authorities contend that this staggered release schedule does not align with their expenditure cycle.