Austere Indian Railways saved Rs8,720 cr in expenses: Prabhu
25 Feb 2016
Stringent austerity measures have helped the Railways contain the current year's ordinary working expenses to Rs1,10,690 crore, down Rs8,720 crore from the budgeted expenses of Rs1,19,410 crore in 2015-16, Railway minister Suresh Prabhu said while presenting the Railway Budget for 2016-17.
For the 2016-17 financial year, the railway minister said the Railways' gross traffic receipts have been kept at Rs1,84,820 crore. Passenger earnings growth has been pegged at 12.4 per cent and earnings target has accordingly been budgeted at Rs51,012 crore.
The railways has pegged incremental freight traffic at 50 million tonnes, anticipating a healthier growth in the core sector of economy. Goods earnings is accordingly proposed at Rs,17,933 crore. Revenue from other coaching and sundries are projected at Rs6,185 crore and Rs9,590 crore, respectively.
He said the budget estimates provided for an appropriation of Rs34,900 crore to the pension fund. However, based on the trend, the pension outgo moderately decreased to Rs34,500 crore in the revised estimates.
The railway's internal resource generation diminished and appropriation to the depreciation reserve fund (DRF) moderated to Rs5,500 crore in the revised estimate from the 2015-16 budget provisioning of Rs7,900 crore. Excess of receipts over expenditure in the revised estimate stands at Rs11,402.40 crore.
Plan size for 2015-16 is currently estimated at Rs1,00,000 crore, ie, the budget estimate level.
Budget estimates 2016-17 gross traffic receipts of the Railways at Rs1,84,820 crore. Passenger earnings growth has been pegged at 12.4 per cent and earnings target at Rs51,012 crore.
Incremental freight traffic is pegged at 50 million tonnes, anticipating a healthier growth in the core sector of economy. Goods earnings is accordingly proposed at Rs1,17,933 crore. Revenue from other coaching and sundries are projected at Rs6,185 crore and Rs9,590.3 crore, respectively.
Ordinary working expenses provided for the implementation of the 7th CPC while pension outgo has been budgeted at Rs45,500 crore in 2016-17. Higher staff cost and pension liability impacts the internal resource position of the Railways. Accordingly, appropriation to DRF from revenue placed at Rs3,200 crore and that from production units at Rs200 crore. A withdrawal of Rs3,160 crore from DRF on net basis has been proposed though the gross expenditure to be met from DRF in the annual plan is estimated at Rs7,160 crore.
An amount of Rs5,750 crore is proposed to be appropriated to the capital fund. With a draw-down of Rs 1,250 crore from previous balances in the fund, plan requirement of Rs7,000 crore for repayment of principal component of lease charges to IRFC have been met. Railways is preparing a Plan size of Rs1,21,000 crore in 2016-17, the minister added.
He said the budget proposes operating ratio of 92 per cent, restricting growth of ordinary working expenses by 11.6 per cent after building in immediate impact of the 7th Pay Commission, reduction in diesel and electricity consumption and revenue generation of Rs1,84,820 crore for 2016-17. He said during 2015-16 investment would be close to double of average of the previous five years.
Prabhu said Railways would be able to achieve annualised savings of Rs3,000 crore in the energy sector during the next financial year itself, a year earlier than announced. He said this could be achieved by procuring power directly at competitive rates.
The railway minister said social media will be used as a tool to bring in transparency. All procurement, including procurement of works, will be moved to e-platform. He said the trial of awarding tender electronically was successful and it will be rolled out on pan-India basis in 2016-17.