- Railway Minister said after the seventh pay commission implemented, additional expenditure of 22 thousand crores on the salary and pension of employees
- A large part spent on running trains in non-profit areas as well, under the construction of new lines and social obligations: Goyal
- Railway Minister said time to explore the possibility of setting aside a budget for social sectors and spending on social obligations
According to the report of the Comptroller and Auditor General (CAG), the earnings of Indian Railways have reached a 10-year low. The operating ratio (operating ratio) of the railways has reached 98.44 percent in FY 2017-18, which means that the Railways have to spend Rs 98.44 to earn Rs 100. Railway Minister Piyush Goyal has attributed this to the increased expenditure on salary and pension and the burden of social obligations due to the Seventh Pay Commission.
Indian Railways have reached a 10-year low in terms of earning
Railway Minister Piyush Goyal said in a written reply in the Lok Sabha on Wednesday that since the seventh pay commission came into force, Railways is spending more than Rs 22 thousand crores on salaries and pensions of employees, which has affected financial health. Goyal also said that under construction of new lines and social obligations, a large part of its fund is spent in running trains even in non-profit areas.
Impact of the railway on expenditure
In the Question Hour, the Railway Minister said, ‘After the implementation of the recommendations of the 7th Pay Commission. However, an additional expenditure of 22 thousand crores is being incurred on the salary and pension of railway employees. It contributes to the operating loss. The minister said that the Railways is also spending a lot on cleanliness, suburban trains, and gauge changes. He said, “All these have costs and this has an impact on the railways.”
‘Separate budget for social responsibility and profit sector’
Goyal said, “When we look at the entire picture, implementing the recommendations of the Seventh Pay Commission. Also, running trains under social responsibility, the operating ratio goes down by 15% in a year.”
The Railway Minister said, “The time has come for us to explore the possibility. Also of separating the budget for social sectors. Also, spending on social obligations.”
What does the CAG report say?
It is very easy to understand the condition of the railway from the operating ratio data. However, it simply means that the Railways are not earning even 2% on all its resources. According to the CAG report, the main reason for the Indian Railways’ operating ratio to be 98.44 percent. Also, in FY 2017-18 is 10.29 percent or higher growth rate. However, as compared to 7.63 percent operating expenses in the previous year.
It states that the railway operating ratio was 90.48 percent in the financial year 2008-09. However, which was 95.28 percent in 2009-10, 94.59 percent in 2010-11, 94.85 percent in 2011-12. Also, 90.19 percent in 2012-13, 2013- 93.6 percent in 14. However, 91.25 percent in 2014-15, 90.49 percent in 2015-16. Also, 96.5 percent in 2016-17 and 98.44 percent in 2017-18.
