Question : LOSS OF POSTAL DEPARTMENT



(a) Whether the Postal Department is running in losses?

(b) If so, the reason therefor;

(c) the losses suffered during 1999-2000; and

(d) the steps taken/ proposed to be taken by the Government to meet the loss in this regard?

Answer given by the minister

MINISTER OF STATE FOR COMMUNICATIONS
(SHRI TAPAN SIKDAR)
(a) The Department of Posts is not running in losses as such, but has been in deficit.

(b) Not applicable in view of (a) above.

(c) The deficit projected for the Revised Estimates 1999-2000 is Rs 1740.53 crore.

(d) Since the cost of most of the Postal services is much more than the tariff being charged for these services, the Department is making all efforts for reduction of deficit. Though 87.88% of the Department`s Budget (Budget Estimates 1999-2000) is on Salaries, wages and Pension etc., which are committed liabilities, the Department is closely monitoring expenditure on a month to month basis to keep it under control. Due to close monitoring and strict administrative action, the Department has been able to maintain the expenditure well within the ceiling approved by Government during the last 4 years from 1996-97 to 1999-2000. The Department has also been making concerted efforts for increasing its revenue receipts particularly by strengthening speed post operations and also proposes to introduce some new schemes such as Greeting post, Data based post and Media post etc., besides aggressive marketing of all premium postal products. This is evident from the upward trend of revenue receipts during the last 4 years from Rs 1214.62 crore in 1996-97 it has risen to Rs 1722.57 crore in 1998-99 and in 1999-2000 (as on Feb. 2000) it is Rs 1812.41 crore.