Financial turn around of Indian Railways: Budget Speech
The speech of Railway minister on Financial turn around of Indian Railways are as follows:1. Sir, I take pride in informing this House that in the first nine months of the year 2005-06, the Railways’ output has been record breaking. The growth in freight loading is 10% and in freight revenues it is over 18%. Based on the trends up to now, the freight loading target is being increased from 635 mt to 668 mt and the goods revenues target from Rs. 33,480 cr to Rs. 36,490 cr. Thus, Railways would achieve incremental freight loading of 111 mt in two years itself, which will be 133% higher as compared to the incremental loading of 83 mt of entire Ninth Five Year Plan period. Tenth Plan targets of 624 mt loading and 396 billion tonne kilometers have been surpassed one year in advance. I believe that we would surpass the Tenth Five Year Plan’s incremental target of 63 billion tkm for freight business by over 200%.
2. According to Revised Estimates, Passenger Earnings, Other Coaching earnings and Sundry Other earnings are likely to register growths of 7%, 19% and 56%, respectively. Gross Traffic Revenues are expected to be Rs. 54,600 cr, which are higher as compared to the previous year and Budget Estimates of the current year by 16 % and 7%, respectively.
3. Ordinary Working Expenses are likely to increase by Rs. 1,200 cr, mainly due to post-budgetary increase in fuel prices. Lease charges paid for rolling stock taken on financial lease have till now been shown as operating expenditure, without segregating interest and principal repayment component. The changes in the accounting system have effected a reduction of Rs. 1,616 cr. in the operating expenses. Overall, Revised Estimate of Ordinary Working Expenses has been kept at Rs. 35,184 cr, which is Rs. 416 cr lesser as compared to the Budget Estimates. As a result of these changes in the accounting system, an improvement of around 3% is also reflected in the operating ratio.
4. According to the Revised Estimates of the current year, Indian Railways’ internal resources before dividend, would reach a historic level of Rs. 12,966 cr. Even after setting aside the effect of the accounting changes mentioned earlier, this amount would be Rs. 11,350 cr. Fund balances would be at a record level of Rs. 11,280 cr and the operating ratio is expected to improve to 83.7%.
