'DoT got over Rs 37,000 crore via USO Fund in 2002-03 to 2010-11'

NEW DELHI: The Department of Telecommunication collected Rs 37,223.92 crore through USO Fund -- set up to promote rural telephone services among others -- during 2002-03 to 2010-11 but disbursed only one-third of the amount, according to CAG.

"A total universal levy of Rs 37,223.92 crore was collected during 2002-03 to 2010-11 by Department of Telecommunication, but a disbursement of only Rs 13,471.44 crore was made from the USO Fund during this period," according to the CAG report.

"Thus, the closing balance of the Fund as on March 31, 2011 should have been Rs 23,752.48 crore as against the 'nil' balance shown under the ...," the report said.

"The levy amount being collected was, therefore, not being utilised for the intended purposes," it added.

CAG said short transfer of collection of universal levy to the USO Fund implied a lower expenditure and resultantly, a lower revenue deficit.

During the financial year 2010-11, the revenue deficit on this account was thus understated by Rs 3,015 crore. Revenue deficit over this period was understated by the amount of short transfer to the fund, it said.

The Universal Service Obligation Fund (USO Fund) was set up in April 2002 for achieving universal service objectives emphasised in the National Telecom Policy (NTP) 1999.

"The service objectives are to provide access to basic telegraph services and provision of household telephones in rural and remote areas by the government," it said.

The USO fund -- a non-lapsable fund -- is administered by the DoT, it said.

"The levy received towards USO is the first credited to the consolidated fund of India and subsequently, the central government credits the proceeds to the USO fund in the Public Account of India from time to time, for being utilised exclusively for meeting the USO," it added.