Business

Rs33.7K-cr diverted from USO fund to other puposes: CAG

PNS

Government auditor CAG has has raised concern over  diversion of Rs33,682.86 crore from the USO fund, which was set up to provide basic telephone services in rural areas, for other purposes from 2002-03 to 2013-14.

The Comptroller and Auditor General in a report said against the total collection of universal access levy (UAl) of Rs58,579.35 crore during 2002-03 to 2013-14, disbursement of subsidy of only Rs24,896.49 crore was made from the fund during these periods.

“The remaining levy of Rs33,682.86 crore was not transferred to the USO fund and utilised for the purposes other than the stated objectives for which the levy was meant,” the report, which was tabled in Parliament, said.

The report said disbursement of amount also include the reimbursement of licence fees and spectrum charges to loss making state-run firm BSNl amounting to Rs6,948.64 crore over the period 2002-03 to 2005-06 for fulfilling rural obligation.

The Universal Service Obligation fund was set up in April 2002 and a statutory status was given to it. The fund is administered by Department of Telecom (DoT).

The fund is to be utilised for providing access to basis telegraph services, like provision of public telecommunication and information services and provision of household telephones in rural and remote areas, provision of broadband connectivity to villages and induction of new technological developments in telecom sector in rural areas.

CAG said the levy received towards USO is first credited to the consolidated fund of India and subsequently, the Centre credits the proceeds to the USO fund in public account of India from time to time, for being utilised exclusively towards the stated objectives and it is a non-lapsable fund.