The Oversight Committee's recommendation, to implement the 27 per cent quota for other backward castes (OBCs), will put an additional burden of Rs 4,583 crore (Rs 45.83 billion) on the exchequer.
Finance Minister P Chidambaram is expected to announce the allocation in the Union Budget on February 28.
The committee, headed by former Karnataka Chief Minister Veerappa Moily, was formed after human resource development minister Arjun Singh announced that the government proposed to introduce 27 per cent reservation for OBCs in Central universities, Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs), Central medical colleges.
The ministry is expected to allocate Rs 546 crore (Rs 5.46 billion) to Central Universities and the information technology-related institutes may get Rs 400 crore (Rs 4 billion). The IIMs is expected to get the lowest allocation of Rs 80 crore (Rs 800 million).