India Post sees deficit jump 85% due to wage hike :

India Post sees deficit jump 85% due to wage hike :

New Delhi, August 8: 

The huge cash outgo on implementation of the Sixth Pay Commission’s recommendations increased the Indian Postal Department’s deficit by 84.84 per cent to Rs 6,641.30 crore for the year ended 2009-10.

During the 2009-10 financial year, the deficit of the department stood at Rs 6,641.30 crore, as against the previous year’s deficit of Rs 3,593 crore, translating into an 84.84 per cent increase.

This was due to a jump in expenses on account of implementation of the Sixth Pay Commission’s report and a normal increase in Dearness Allowance, the Department of Post said in its annual report for 2010-11.

The department has a network of 1.55 lakh post offices in the country, the largest in the world, of which more than 1.39 lakh are in rural areas.

The total revenue earned, including remuneration for saving bank and savings certificates work, during the year 2009-10 was Rs 6,266.70 crore and the amount received from other ministries/departments for agency functions was Rs 4,389.36 crore.

Gross working expenditure for the year 2009-10 was Rs 13,346.94 crore, as against the previous year’s expenditure of Rs 97,562.30 crore.

“The increase was mainly due to payment of arrears on pay and allowances on implementation of Sixth Pay Commission’s report and a normal increase in dearness allowance/dearness relief,” the report added.

Expenditure on fixed assets in the year 2009-10 stood at Rs 254.3 crore, of which 4.75 per cent was on land and buildings, 94.86 per cent on mechanisation and modernisation of postal services and 0.39 per cent on mail motor vehicles and other items.

The value of gross capital on the Postal Department’s fixed assets rose to Rs 2,123.94 crore at the end of the year. Its net progressive fixed asset value up to the end of the year was Rs 1,957.61 crore.

The Indian Postal Department provides mailing services for postcards, letter cards, letters and registered parcels, besides premier services like speed-post, EMS, logistics post, and e-payment, savings bank, savings certificates and Western Union Money Transfer.

It also acts in coordination with the Ministry of Finance with respect to reviewing the agency charges for services being performed under the National Small Saving Scheme and National Rural Employment Guarantee Act.

Source : The Hindu Business Line