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GOVERNMENT OF INDIA
MINISTRY OF  INFORMATION AND BROADCASTING
LOK SABHA
STARRED QUESTION NO 166
ANSWERED ON   09.03.2010
PRASAR BHARATI
166 . Shri NITYANANDA PRADHAN
Will the Minister of INFORMATION AND BROADCASTING be pleased to state:-


(a) whether the Government had recently ordered a special audit of the Prasar Bharati;

(b) if so, the details thereof and the reasons therefor alongwith the outcome thereof;

(c) whether there exists a gap between the income and expenditure of Prasar Bharati;

(d) if so, the details in respect of the last three years and the current year; and

(e) the details of the steps taken by the Government to address various issues plaguing Prasar Bharati?
ANSWER

MINISTER OF THE STATE IN THE INFORMATION AND BROADCASTING (Smt. AMBIKA SONI)

(a) to (e) : A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) of LOK SABHA STARRED QUESTION NO.166 FOR ANSWER ON 09.03.2010.

(a) & (b) Yes Sir, Special audit of Prasar Bharati was ordered on 25.05.2009 and is in progress. The scope of the special audit includes the following:

i. General accounting issues on expenditure incurred by Prasar Bharati from grants-in-aid given by Government of India since its inception, unspent balances not refunded to Government, internal and extra budgetary resources and reconciliation of receipts and bank statements.

ii. Specific issues of financial management brought out by Member (Finance), Prasar Bharati relating to issues such as acquisition of Radio Broadcast Rights for three cricket series, investment of surplus funds of Prasar Bharati in various banks, verification of imprest balances lying with field offices, Debtors profile, etc.

(c) & (d) Yes Sir, Prasar Bharati being a public service broadcaster is not principally guided by commercial motive in its functioning. The income earned by Prasar Bharati is known as Internal Extra Budgetary Resource (IEBR). The details of income, expenditure and gap for the last three years and the current year are as under:
	 						(Rs. in crore)


Financial Income Expenditure Gap between Expenditure Year & Income
2006-07 983.05 1954.67 971.62
2007-08 1035.86 2057.92 1022.06
2008-09 1096.78 2518.88 1422.10
2009-10 1119.00 3098.00 1979.00

For the year 2009-10 figures are provisional. The steep rise in expenditure during the year 2008-09 and 2009-10 is primarily due to the implementation of the 6th Central Pay Commission’s recommendations.

The Government has provided financial assistance to Prasar Bharati by way of grant-in-aid and loan in the form of Direct Budgetary Support to meet the plan and non-plan expenditure. The assistance given for the last three years and the current year is as under:
	         		(Rs. in crore)

Financial Direct Budgetary Support Year Grant-in-aid Loan Total
Non Plan Plan
2006-07 878.18 255.50 40.02 1173.70
2007-08 974.14 119.13 204.19 1297.46
2008-09 1137.12 81.82 232.11 1451.05
2009-10 1246.42 198.48 150.11 1595.01

For the year 2009-10 figures are provisional.

(e) To consider the financial restructuring and other critical issues plaguing Prasar Bharati a Group of Ministers (GOM) was constituted in March, 2006. The GOM has been reconstituted on 10th February, 2010 to examine various issues pertaining to the functioning of Prasar Bharati.


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