The purpose of this paper is to develop and demonstrate a performance‐based allocation model for university libraries in India.
Using economic models with weighted values, a system of allocating funds to university library departments is illustrated.
The paper finds that many university libraries in India struggle to continue their existing operations and services due to financial problems. Careful budgeting and most appropriate use of financial resources is essential to solve the existing financial problems.
The model takes into account efficiency and equity considerations, which can assist the library in allocating its budget in a transparent and fair manner.
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