Wednesday, 30 May 2012
Indian Railway Budget, Balance Sheet of the World’s Largest Democracy’s Railway System
The Railway Budget of India can be referred to as the Annual Financial Statement of the Indian Railways. The Railway Budget is presented in the Indian Parliament by India’s Union Minister for Railways, every year usually two days before the General Budget in February. The First Railway Budget of Independent India was presented by Mr. John Mathai in November of 1947.
In the year 1924, India’s Railway Budget was separated from the General Budget [Please see 2nd Paragraph of this blog article: http://businessfinancialplan.blogspot.in/2012/03/general-budget-of-india-balance-sheet.html]. The people of India have been taking interest in the Railway Budget since after Independence as it brings along information about the Changes in Train Fares, be it Passenger or Freight Rail Services. It also gives information about the various Railway Projects from the past and also about their future plans. The projects can be Track Doubling, Track Gauge Conversion, Track Electrification or introduction of new routes.
The Railway Budget of India also acts as a Balance Sheet which describes the Annual Earnings and Expenditures made by the Indian Railways. It also announces the list of various trains which will be introduced, the extension of existing trains and increase in some train’s frequencies. The Rajdhani Express, Shatabdi Express and Duronto Express are examples of some Superfast Train Services which have been announced and then introduced during various Indian Railway Budgets over the years. The Kolkata-Amritsar Superfast Express which runs between Kolkata Chitpur Terminal (KOAA) and Amritsar (ASR) is one train as an exception which was converted from a Duronto Train to a Normal Superfast Train just before its inauguration.
Thus, it can be concluded that the Railway Budget of India is a hefty but important aspect for the smooth functioning of the Indian Railways. Ultimately, it’s the Ministry of Railways which frames the Indian Rail Budget in consultation with the Railway Board of India.