Schools deeper in financial hole as parents refuse to pay

Abhishek Choudhari | TNN | May 4, 2020, 04:33 IST

Nagpur: Private unaided schools in district say a cumulatively crores of rupees are pending as fees because many parents are citing government advisories and refusing to pay up. TOI on Sunday had reported about the government’s plan to issue guidelines advising schools not to increase fee for the new session.
A CBSE school principal said, “The issue is first about pending fee which is not being paid by many parents. My school is owed over Rs 50 lakh and this is a very small amount if you compare with others who charge very high fees and are located in city limits.”
Another school trustee said not increasing the fee could not be a solution to the current crisis. “In district, almost Rs 10 crore must be the pending as fee for all schools cumulatively. Parents just refuse to pay up and say there is government order. But we have online payment facility for which parents don’t have to venture out. We are also giving them monthly instalment facility,” said the trustee.
Rajendra Dayma, president of state level Independent English Schools Association (IESA) said the pending fee logjam was a huge issue. “Currently across Maharashtra we are witnessing a deficit of almost 30% in receipts. Can you imagine managing with just 70% of income? Which costs will you cut when everything is essential,” asked Dayma.
He added the government had faltered in a big way. “It’s a populist decision to ask schools to refrain from collecting fee. This has spelt doom for all stakeholders and unfortunately even those parents who can pay, are now refusing to,” said Dayma.