0 Bewertungen0% fanden dieses Dokument nützlich (0 Abstimmungen)
20 Ansichten3 Seiten
The focus of The Budget remains on induction of technology in order to modernize and strengthen the infrastructure of the overall railway system. Passenger fares and freight charges were hiked earlier, which was outside The Budget. The Budget also emphasizes on improving the rail safety and security through various measures as well as enhancing passenger amenities.
The focus of The Budget remains on induction of technology in order to modernize and strengthen the infrastructure of the overall railway system. Passenger fares and freight charges were hiked earlier, which was outside The Budget. The Budget also emphasizes on improving the rail safety and security through various measures as well as enhancing passenger amenities.
The focus of The Budget remains on induction of technology in order to modernize and strengthen the infrastructure of the overall railway system. Passenger fares and freight charges were hiked earlier, which was outside The Budget. The Budget also emphasizes on improving the rail safety and security through various measures as well as enhancing passenger amenities.
The new Government presented its maiden Railway Budget for FY15 today. The focus of the Budget remains on induction of technology in order to modernize and strengthen the infrastructure of the overall railway system with greater efficiency, transparency and integrity besides enhancing overall quality of services. Railways passenger fares and freight charges were hiked earlier, which was outside the Budget. Therefore, there has been no fresh change in these rates. The Budget aims at sourcing its much needed capital support from Private partnerships and FDI for modernization (subject to Cabinet approval) and expansion of railways. The Budget also emphasizes on improving the rail safety and security through various measures as also enhancing passenger amenities. The various positive measures laid down in the Budget would thus not only help in modernizing the rail system but bring in greater operational efficiency.
Financial Performance: 2013-14
Railways carried 1050.18 MT during the year. The goods earnings fell short of its estimates by Rs.94 crore. Passengers were also less by 46 million over revised target and its earnings were short by Rs.968 crore over the revised target. Gross traffic receipts grew by 12.8% to reach Rs. 1,39,558 crore while the ordinary working expenses stood at Rs. 97,571 crore which was in excess by Rs.511 crore. Surplus for the year was Rs.3,783 crore after fulfilling the dividend commitment of Rs. 8,010 crore. Internal revenue generation for FY14 was Rs. 11,170 crore against the revised target of Rs. 14,496 crore. Operating ratio deteriorated by 2.7% over the revised target to touch 93.5%. The plan expenditure fell short of targets of Rs.59,359 core on account of non- materialization of PPP projects.
Budget Estimates: 2014-15
Freight traffic growth pegged at 4.9% amounting to 1,101.25 MT while earnings estimated at Rs.1,05,770 crore Passenger growth pegged at 2% with earning of Rs. 44,645 crore. Ordinary Working Expenses proposed at Rs.1,12,649 crore. Pension outgo trend retained at Rs.28,850 crore Plan outlay under budgetary sources Rs. 47,650 crore E c o n o m i c s
J u l y
8 ,
2 0 1 4
Economics Railway Budget FY15 2
Market borrowings scaled down to Rs. 11,790 crore from Rs.19,805 crore. Surplus for FY15 is estimated at Rs.602crore Operating ratio to come down from 93.5% to 92.5% in FY15.
Key measures
In an effort to improve railway services the following announcements have been made-
Will offer Wi-Fi-services in all 'A' category trains and A1 stations. Digitization of reservation charts at stations Working on making railway offices paperless in five years. E-ticketing through mobile phone as well as expanding the scope of online booking Provision of escalators, lifts via PPP route at all major stations CCTVs will be installed at major stations in order to keep a check on cleanliness Recruit 4,000 Women as RPF constables for strengthening safety and security. Revamping of the entire reservation system Outsource cleaning services in railways Launch of new train routes Construction of 1785 road under bridges and road over bridges High speed bullet trains to be launched.
Measures to improve efficiency
Proposed to restructure Railway Board Aims to utilize the station rooftops to harness soar energy E-procurement compulsory for procurement over Rs.25 lakh Status of ongoing projects to be made available online. Proposed to set up project formulation and management group Independent Rail Tariff Authority Set-Up to Advice on Fares and Freight
Budget Implications
Firstly, the increase in freight rates of 6.5% across the board will affect prices of goods that use railways as a mode of transport. For the industry as whole the average increases of over 6.5% in freight rates will push up the cost of production which in turn will exert pressure on prices of final products. There could be migration to road transport though the higher cost of diesel on account of the price being calibrated to the market could be a countervailing factor. Economics Railway Budget FY15 3
The increase in freight rates (6.5%) and the increase in passenger fares (14.2%) together would result in additional revenue mop up of Rs 8,000 crore. This is likely to partly offset the increasing cost during the year. Passenger friendly measures such as e-ticketing system, e-ticketing through mobile phones, free Wi-Fi facilities in some trains, escalators and lifts at major stations, CCTVS to monitor stations, large scale computerization, platform and unreserved tickets through internet, etc. have been proposed. These initiatives will largely have a positive impact on various sectors particularly information technology (IT), telecommunication and engineering. Besides, expansion of railways with faster clearances of proposed projects in the pipeline will positively boost the demand for industries such as steel, aluminum cables, cement, solar equipment, electrical equipment, etc. The modernization of the railways through induction of technology will also help eliminate corruption and bring in more efficiency into the system. Share of freight traffic earnings shall increase further as no shift towards substitutes such as road transport is expected with hike in diesel prices already in place. The Budget provides significant opportunities for Public investments via PPP mode. It also seeks to bring in resources through FDI mode. Over Rs 6000 cr is to be mobilized through this route. To make it more attractive tax holidays have been proposed. Borrowings through IRFC would be Rs 11,790 cr, which presumably would be tax free bonds. This will be useful for households and complement any effort in the Union Budget to enhance the savings rate.
The stock market reaction has not been positive as it was expected that the Railways would go in for higher spending. Controlled spending by the Railways could also indicate discretion in the Union Budget to be presented on the 10 th .
Disclaimer This report is prepared by the Economics Division of Credit Analysis &Research Limited [CARE]. CARE has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE (including all divisions) has no financial liability whatsoever to the user of this report.