RTI MANUAL-11

BUDGET

FINANCIAL MANAGEMENT

India Post provides postal facilities within the reach of every citizen in the country through its vast network at an affordable price. Besides providing postal services, post offices perform agency functions like Savings Bank, payment of pension, sale of Cash Certificates etc. on behalf of other Ministries/ Departments of the Government of India/ Other Organizations.

TABLE 1 Revenue and Expenditure (for the year 2008-09 & 2009-10) (INR in Million)
Particulars	Actuals 2008-09	Actuals 2009-10	% age lnc (+)/ Dec(-) over previous year
Revenue
Sale of Stamps Postage Realised in Cash Commission on Money Orders and Indian Postal Orders etc. Remuneration for Saving Bank/Saving Certificates Work. * Other Receipts	6056.64 20364.48 3382.97 28024.60 794.57	6178.11 20972.82 3398.42 31327.68 789.98	2.01% 2.99% 0.46% 11.79% -0.58%
Total	58623.26	62667.01	6.90%
Expenditure General Administration Operations Agency Services Others Total Gross Expenditure** Less Recoveries	5999.55 60359.74 4300.06 26902.95 97562.30 3008.16	7300.02 82596.64 4225.79 39346.96 133469.41 4389.36	21.68% 36.84% -1.73% 46.26% 36.80% 45.92%
Net Expenditure	94554.14	129080.05	36.51%
Deficit (Net Exp - Revenue)	35930.88	66413.04	84.84%
This includes service charges retained by the Department of Posts from sale of Passport Application Form, Passport Fee Stamps, Central Recruitment Fee Stamps, receipts from other Postal Administrations etc. Sale of stamps includes sale of Postage stamps, service stamps. ** This includes Audit and Accounts, Amenities to Staff, Pension charges, Stationery and Printing etc.

The total revenue earned including remuneration for Savings Bank and Savings Certificates work during the year 2009-10 was Rs. 62,667.01 million and the amount received from other Ministries/ Departments for Agency functions was Rs. 4,389.36 million. Gross working expenditure for the year 2009-10 was Rs. 133,469.41 million against the previous year’s expenditure of Rs. 97,562.30 million. The increase was mainly due to payment of arrears of Pay and Allowances on Implementation of 6th Pay Commission’s Report and Normal increase in Dearness Allowance/Dearness Relief etc.

TABLE 2 Recovery of Working Expenses on account of Agency Services in 2008-09 and 2009-10 in Million)
SI. No.	Head of Account	2008-09 Actuals	2009-10 Actuals
1	Military Pension	0.00	0.00
2	Payment of Coal Mines and EPF/Family pension and misc services	91.54	99.49
3	Payment of Railway Pension	69.17	159.25
4	Postal Life Insurance	1949.69	2978.36
5	Custom Duty Realisation	19.15	17.40
6	Mahila Samridhi Yojna	0.00	0.00
7	Commission on a/c of International money transfer Western Union Scheme	389.62	1013.32
8	Telegraph share of Combined Offices	0.27	0.07
9	*Others	488.72	121.47
	Total	3008.16	4389.36
* This includes Commission on sale of Non-Postal stamps of Delhi Administration, Incentive paid to staff from commission recovered under Retail Post, Accounts and Audit, Commission on account of payment of P.O. Provident Fund, Share of spread margin received from WUFSI etc.

The earnings of the Department are in the form of ‘Recoveries’ and ‘Revenue Receipts’. The item ‘Recoveries’ mentioned in Table 9 represents the amount of commission earned by the Department for Agency Functions done on behalf of other Departments and organizations and ‘ Revenue Receipts are on account of sale of Postal articles, commission on money orders and Indian Postal Orders, receipts from other premium services, remuneration for Saving Bank and Saving Certificates work etc. The earnings of the Department are on the lower side in comparison to the working expenses incurred. During the financial year 2009-10 the deficit of the department was Rs. 66413.04 million against previous year’s deficit of Rs. 35930.88 million which is increased by 84.84% due to increase in Working Expenses on Implementation of 6th pay commission’s Report and normal increase in DA.

The funds made available by the Ministry of Finance for ‘Working Expenses’ and ‘Capital Outlay’ during the year were appropriately utilized. Surplus funds were surrendered in time to the Ministry of Finance.

TABLE 3 FUNDS SURRENDERED AND SAVING DURING 2009-10 (INR. in million)
Nature of Expenditure	Budget Estimate	Suppl. Grant/ Re-app.	Total	Actual Expenditure	Excess(+)/ Saving (-)	Amount Surrendered/Re- app.	Savings
3201 Working	120465.00	4366.00	124831.00	133469.41	8638.41	4.61	8643.02
2552 Prov. For the Development of North East Region	437.00	0.00	437.00	0.00	-437.00	0.00	-437.00
Total Working	120902.00	4366.00	125268.00	133469.41	8201.41	4.61	8206.02
5201 Capital Exp.	3705.00	1.10	3706.10	2616.57	-1089.53	1641.40	551.87
4552 Prov. For the Development of North East Region	183.00	0.00	183.00	0.00	-183.00	0.00	-183.00
Total Capital	3888.00	1.10	3889.10	2616.57	-1272.53	1641.40	368.87
Total Working Exp +Capital Exp	124790.00	4367.10	129157.10	136085.98	6928.88	1646.01	8574.89

Capital Outlay

The expenditure on fixed assets in the year 2009-10 was Rs. 2543.22 million, of which 4.75% was on Land and Buildings, 94.86% on Mechanization and Modernization of Postal Services and 0.39% on Mail Motor Vehicles and others. The value of Gross Capital on fixed assets rose to Rs.21239.40 million at the end of the year. The net progressive fixed asset value upto the end of the year was Rs.19576.13 million.

TABLE 7 FUNDS SURRENDERED AND SAVING DURING 2009-10 (INR. in million )
Nature of Expenditure	Budget Est.	Suppl. Grant/ Re - app.	Total	Actual Expd.	Excess(+)/ Saving(-)	Amount Surrendered/ Re-app.	Savings
3201 Working	120465.00	4366.00	124831.00	133469.41	8638.41	4.61	8643.02
2552 Prov. For the Development of North East Region	437.00	0.00	437.00	0.00	-437.00	0.00	-437.00
Total Working	120902.00	4366.00	125268.00	133469.41	8201.41	4.61	8206.02
5201 Capital Exp.	3705.00	1.10	3706.10	2616.57	-1089.53	1641.40	551.87
4552 Prov. For the Development of North East Region	183.00	0.00	183.00	0.00	-183.00	0.00	-183.00
Total Capital	3888.00	1.10	3889.10	2616.57	-1272.53	1641.40	368.87
Total Working Exp + Capital Exp	124790.00	4367.10	129157.10	136085.98	6928.88	1646.01	8574.89