The ministry of information & broadcasting (I&B) has asked for an over 112% hike in its budget allocation for 2010-11, even as it failed to use even half of the money allocated to it in the current fiscal.
Going by sources, Ambika Soni, union minister of I&B, has asked the finance ministry for an allocation of Rs 1,700 crore for the next fiscal, compared with Rs 800 crore in 2009-10. The ministry is believed to have cited higher expenditure given the Commonwealth Games in October 2010.
However, it is learnt that the ministry of finance is not happy with I&B ministry’s performance this year and has indicated that it may get even less than last year’s allocation, keeping in mind the steep fiscal deficit.
“The ministry can ask for anything, but we need to be rational while allocating funds to ministries in the coming year, keeping in mind the high fiscal deficit that needs to be controlled,” said a source close to the development.
According to the government’s assessment, the I&B ministry has been able to spend nearly Rs 300 crore till date and in the remaining months of the financial year, it will not be able to use more than Rs 400 crore.
Earlier this week, Soni presented the I&B ministry’s wish list to the finance ministry. It has asked for removal of the basic custom duty on digital headend / broadcast equipment, which currently stand at 7.5-10%. Also, the ministry has asked for exemption from any duty for the next five years on digital set top boxes.
The Union Budget will be presented in the last week of February 2010 and the ministries have started lobbying hard for the maximum possible funds.
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