Rediff.com  » Business » Prabhu seeks merger of railway and union budgets

Prabhu seeks merger of railway and union budgets

Source: PTI
July 15, 2016 14:53 IST
Get Rediff News in your Inbox:

Currently, Railways is facing a loss of Rs 34,000 cr in passenger segment and its earnings are falling.

Railway minister Suresh Prabhu has written a letter to finance minister Arun Jaitley seeking an end to the age-old practice of presenting a separate budget for railways by merging it with the general Budget.

Prabhu has recommended ending the 92-year-old practice, said a senior railway ministry official.

The official said though the letter was sent in June, no reply from the finance minister has been received yet.

After Niti Aayog member Bibek Debroy recommended the merger, the Prime Minister's Office (PMO) sought a reply from the railways ministry last month.

Now that the railway minister has responded, a decision has to be taken by the Centre to forego the railway budget and merge it with the general Budget.

Asked whether there will be railway budget in 2017-18 or 2016-17 budget was the last budget for railways, the official said "a decision is yet to be taken on this."

Currently, railways is facing a loss of Rs 34,000 crore (Rs 340 billion) in the passenger segment and its earnings are falling.

Besides, railways is also facing an accumulated burden of a whopping Rs 4,83,511 crore (Rs 4.83 trillion) towards execution of 458 unfinished and ongoing projects. 

In the event of a merger, the entire financial burden will be transferred to the finance ministry.

Railways is also accountable for annual dividend payment against the Gross Budgetary Support (GBS) component that it gets from the government.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2021 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
SHARE THIS STORY 

Moneywiz Live!