The UGC cannot spend freely without planning and it must forecast needs in advance and get government oversight.

Modern global universities rely on Endowment Funds that are shielded from government interference. Section 16 is archaic because it treats the UGC as a pass-through entity for government cash rather than a wealth-generating trust that can sustain higher education through economic downturns.

Basically, this section ensures that the UGC’s funding comes from the national budget i.e. taxpayers’ money via Parliament, and it’s not automatic. It requires parliamentary approval each year to cover the Commission’s operational and grant-giving expenses.

In a colonial context, this was to prevent subversive or low-quality education; in 2026, it is seen as a violation of academic autonomy.

Colleges recognized under Section 12B of the UGC Act 1956 are eligible for central assistance. This section ensure that colleges meet certain standards of academic and infrastructural quality, allowing them to receive financial grants for development projects, research activities, and capacity building.

Clause (b) examines the types of activities or professions graduates will engage in, like medicine, engineering, or teaching, where public safety or quality matters.

The UGC can advise universities under Section 12(j) to take necessary steps for improving university education and recommend actions for implementing such advice.