Railway Budget 2016: 5 things to expect from Suresh Prabhu

The Railway Budget comes at a time when the economy is hurting from a global slowdown

Union Rail Budget 2016-17 will be tabled at noon today, at a time when the broader economy is under pressure from a global slowdown. The Railways itself is under considerable fiscal pressure, with freight volumes declining as demand falls. Here are six things that Railways Minister Suresh Prabhu is likely to rollout in the Railway Budget.
 
1. The Budget will likely focus on continuing efforts at capacity creation, mostly through funding from outside resources - private sector, financial institutions and state government's joint ventures
 
2. Prabhu can ill-afford to be seen having failed to meet FY16's operating ratio target of 88.5. However, all preliminary indicators suggest he may need a reality check

 

3. The share of gross budgetary support in total plan size will be a key number to watch, as it will present a clearer picture of how the ministry’s finances are, and how much fiscal discipline will hold up in the year.
 
4. Other crucial numbers will include the budgeted rise in freight volumes – a major source of revenue for the ministry – and the total hit taken by the railways on account of social service obligations.
 
5. Prabhu had increased freight rates by an average 4% in last year's Budget without mentioning it in his speech. It will be of interest to see if he will do the same this year, too.