Sikkim University, the state’s sole central university, has recorded a financial deficit of ₹3.62 crore in its pre-audit annual accounts for FY 2025–26. The figure marks a stark contrast to FY 2024–25, when the institution posted a surplus of ₹3.63 crore.
The reversal is primarily driven by a sharp decline in overall revenue. Total income plummeted by over ₹11 crore—dropping from ₹108.76 crore in the previous fiscal year to ₹97.47 crore in 2025–26. A significant reduction in central grants and subsidies accounted for most of the shortfall, declining from ₹93.06 crore to ₹85.37 crore. Academic revenue, comprising tuition and examination fees, also dipped from ₹3.25 crore to ₹2.90 crore.
Despite tightening its belt and scaling back total operational expenditure from ₹105.13 crore to ₹101.09 crore—largely through a ₹5 crore reduction in staff payroll—the spending cuts were insufficient to offset the steep revenue drop. Staff payments remained the single largest cost center at ₹60.91 crore, followed by administrative expenses (₹16.03 crore) and depreciation (₹12.36 crore).
On the capital front, however, the university’s total balance sheet expanded from ₹584.99 crore to ₹655.30 crore, buoyed by ₹61.58 crore in capital grants from the UGC and the Central Government. Bank term deposits rose to ₹199.31 crore, even as liquid cash balances shrank from ₹16.14 crore to ₹13.30 crore. The university noted that all figures remain subject to final audit verification.