Struggling Postal department8217;s deficit soars by Rs 40 crore

Stating the reasons for increasing revenue deficit, the minister said that the department8217;s deficit is largely due to 8220;nearly 89 per cent of the expenditure incurred on mandatory heads like salary, pension of staff etc8221;. He added that another reason is the fixed rates of most services to cater to the common man.

In the past, the postal services have also seen revenue decline from sale of postage stamps, which have fallen by 8.5 per cent as of January this year. The fact is that the postal department is lagging far behind when it comes to certain key issues such as automation. Out of 1.5 lakh post offices, a mere 5.3 per cent have been computerised, as per the ministry8217;s own admission.

Meanwhile, The Post Office Amendment Bill, 2006, that talks of professionalising the government-run mail delivery service, has been in a state of limbo since its inception. With lack of consensus within the government, there is little chance of it seeing the light of day. Amongst its provisions, one relates to exclusive monopoly of Indian Post on mail delivery weighing up to 300 grams, which was contested by private players as this section forms a bulk of its business.