- The Prasar Bharati is bound by the government’s general financial rules and must sign a memorandum of understanding (MoU) with the Information & Broadcasting Ministry on financial targets and timelines for activities to use grants in a financial year, the Ministry said.
Why in news?
- The Ministry’s statement comes in the wake of a public conflict between the Prasar Bharati Board and the Ministry and a media report that the Ministry had withheld funds after December 2017 in response to the Prasar Bharati Board’s differences with the Ministry.
- At a meeting of the Prasar Bharati Board last month, at least three directives from the Ministry were rejected.
- The Ministry’s directives were in “contempt” of the Prasar Bharati Act.
‘Fiscal prudence crucial’
- Fiscal prudence and accountability is the very fulcrum of the functioning of any government organisation.
- Prasar Bharati is bound by the General Financial Rules (GFR) of the Government of India.