(a) whether the Postal Department is running into losses for the last three years and out of its
twenty postal services, sixteen are running in losses ;
(b) if so, the reasons therefor alongwith the details thereof during the last three years ;
(c) whether the Comptroller and Auditor General has pointed out many shortcomings in the working
of Postal Department ;
(d) if so, the details thereof; and
(e) the steps taken by the Government to overcome the same ?
THE MINISTER OF STATE IN THE MINISTRY OF COMMUNICATIONS
AND INFORMATION TECHNOLOGY (DR. SHAKEEL AHMAD)
(a) Yes, Sir.
(b) The major reasons for the deficit are the pensionary liabilities and social obligations of the Department of
Posts.The pensionary charges alone accounted for Rs.1424.66 crores, which formed 1/5th of the gross expenditure
of the Department of Posts of Rs. 6779.12 crores for the year 2006-07. Unlike most of the Ministries/Departments of
Government of India, the pensionary expenditure has to be borne by the Department of Posts itself resulting in
huge deficit.
Besides the pensionary liabilities, most of the deficit arises due to the high level of subsidy borne on account of its
large postal network, particularly in rural and tribal areas, in order to fulfil universal service obligations.The detail of
postal services both in deficit and surplus for the last three years is given in the Annexure.
(c) No, Sir, not many. However we have received two paragraphs pertaining to Performance Audit contained in Report
No. 1 and five paragraphs pertaining to transaction audit observations contained in Report No. 2 of 2007.These all are
of routine nature.
(d) C&?’s Audit Report for the year ended March, 2006 has already been laid at the table of both the Houses on 14th
May, 2007. The areas covered by C&AG of India in these reports relating to Department of Posts are listed below:
Performance Audit:-
(i) Mail Management
(ii) Management of cash in Post Offices
Transit Audit Observations:-
(i) Non-reduction of Income Tax at source
(ii) Short realization of postage charges
(iii) Irregular payment of interest on KVP
(iv) Irregular payment of interest on PPF
(v) Irregular payment of interest and commission on MIS.
(e) Remedial and preventive action suggested by the C&AG are implemented by the Department of Posts.