Press Information Bureau

Government of India

Cabinet

08-November-2012 13:1 IST

The Union Cabinet today approved the proposal for change in funding arrangement for the Universal Service Obligation Fund (USOF) schemes, including the funding of the scheme for creation of National Optical Fiber Network (NOFN) from Non-Plan to Plan allocation in Budget.

The proposal of Department of Telecommunications was based on the advice of the Department of Economic Affairs, Ministry of Finance wherein it was suggested that the funding of USOF schemes including the scheme for creation of National Optical Fiber Network (NOFN) should continue to be financed out of the Plan allocation for better appraisal, monitoring and performance evaluation. Accordingly the Note dated 4th October 2012 was submitted for approval of the Cabinet, for reverting to the earlier arrangement for allocation through Plan Head, as implemented by the Ministry of Finance from the financial year 2011-12 onwards.

Earlier the Department proposed to restore the budgetary allocations towards USOF expenditure under Non-Plan Budget to avoid procedural delays and ensure timely allocation of funds, while submitting the proposal regarding scheme for creation of the National Optical Fiber Network (NOFN) for Broadband connectivity to Panchayats, which was approved by Cabinet in October 2011.

****
SC/SK/LM

Funding change for Universal Service Obligation Fund moves NOFN financing to Plan allocation for improved appraisal and monitoring. The Union Cabinet approved reverting USOF financing, including the National Optical Fiber Network scheme, from Non Plan to Plan allocation in the Budget so that USOF schemes are funded through the Plan head to enable improved appraisal, monitoring and performance evaluation; the Department had earlier sought Non Plan allocations to avoid procedural delays while advancing NOFN for broadband connectivity to Panchayats.