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Synopsis With the introduction of Economic Reform, replacement of GATT (General Agreement on Trade and Tariff) by WTO (World Trade Organisation) (1995) and signing of General Agreement on Trade and Services (GATS) by WTO in 1996, Higher Education has become a non-priority area and treated as a non-merit good. So the resource mobilisation for the sector has become a problem.  In such a context the present study which is a research work of many scholars and social scientists focuses on the sources of funding of Higher Education, the mechanism followed in generating grants, problems faced by the authorities in funding educational institutions. The work also highlights on the essence of self-financing schemes and privatization of education developing curriculum with respect to the resource endowment of the state of Orissa. The effectiveness of the self-financing courses has also been judged from various angles. The study will be of immense help to the planners, policy-makers, researchers, educationists and administrators.