Postal services: Revenue estimated at Rs 4,200 cr, expenditure at Rs 5,487.01 cr in 2003-04
The aggregate postal deficit is expected to come down to Rs 1,287.01 crore in 2003-04 from Rs 1,430 crore in 2002-03, as per budgetary estimates. While postal services continue to be heavily subsidised, the decrease in deficit may be attributed to a number of new services for corporates and tie-ups with financial service providers.
The postal department expects to reduce its staff strength by nearly 20,000 to 5,92,760 during the next fiscal. Postal revenue is estimated to be Rs 4,200 crore in 2003-04, as against the revised estimates of Rs 3,962 crore for 2002-03. The expenditure is also set to go up marginally from Rs 5,392.61 crore to Rs 5,487.01 crore over the next fiscal. The postal services have also been given a budgetary support of Rs 150 crore for 2003-04, as against Rs 95 crore provided in 2002-03.
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The Economic Survey for 2002-03 has suggested the removal of subsidy on postal services like parcels, which are not under the Universal Postal Service Obligation.
The deficit is mainly because 90 per cent of the postal outlets are in rural areas, which means that services have to be offered at below-cost tariffs. For instance, the subsidy per post card is Rs 6.70, whereas it is sold at 50 paise. The gross annual subsidy on this head is pegged at Rs 129 crore.
Other services like registered post and money order are also heavily subsidised.