Government has pegged the annual budget of the Department of IT at last year's level of Rs 470 crore (Rs 4.7 billion) for 2003-04 even as DIT scaled down its original demand by over 50 per cent.
The department had asked for a budget of Rs 1146.90 crore (Rs 11.46 billion) while at the revised estimate, but the demand was scaled down to Rs 517 crore (Rs 5.17 billion) and finally Rs 470 crore (Rs 4.7 billion) was allocated which is the same as the allocation last fiscal, IT department sources said.
The allocation is likely to result in shortage of funds for R&D and infrastructure upgradation which the department was planning to take up in a big way, they said.
The fixation of annual budget of DIT at the same level is a result of the gross budgetary support of Rs 1,17,500 crore (Rs 1175 billion) approved by the finance ministry against a demand by the Planning Commission for higher allocation at Rs 1,34,064 crore (Rs 1340 billion).
Anticipating a higher allocation, DIT had started earmarking funds for different expansion projects such as Rs 80 crore made for Media Lab Asia, Rs 30 crore for a DNA Bio-informatics park and Rs 20 crore for research in nanotechnology by setting up community information centres in Andaman and Nicobar, Kashmir and new states like Chhatishgarh and Uttranchal.
The Tenth Plan (2002-07) funds projections for the department is Rs 2714 crore (Rs 27.14 billion).
Now many of the new and expansion plans would have to be put on hold, they said.
With more projects being undertaken by DIT like CICs, centrally sponsored schemes like Vidya Vahini, focus on R&D in emerging technologies and diversification of activities towards bio-informatics, the department was expecting a surge in expenses, they said.
The department has been aggressive in e-governance, e-learning, tele-medicine and school computerisation initiatives.
During his visit last year, Microsoft chairman Bill Gates had announced a grant of 21 million dollar for various initiatives by DIT under its e-learning and Media Lab Asia projects.
While 20 million was committed by Gates for an e-learning initiative like Shiksha, one million dollar was for Media Lab Asia.
