Interim Railway Budget: Meeting target a tall order

Reflecting the stress on Indian Railways’ finances, minister Mallikarjun Kharge on Wednesday proposed a mere six per cent increase in the total Plan outlay of Rs 64,305 crore for 2014-15. This follows the Railways being forced to cut its spending by about six per cent this financial year to Rs 59,359 crore.

Kharge said of the Rs 64,305-crore Plan outlay for next year, government support would be Rs 30,223 crore, about 16 per cent more than the Budget estimate for 2013-14.

However, despite the increased support, the railways would fall short of the 12th five-year Plan (2012-13 to 2016-17) target of Rs 1,94,221 crore of budgetary support. The low allocation in the first three years of the 12th Plan means budgetary support in the last two years of the Plan will have to be a staggering Rs 58,000 crore. For 2014-15, the railways cut its market borrowings estimate to Rs 13,800 crore from the 2013-14 Budget estimate of Rs 15,103 crore. At Rs 13,500 crore, funds from internal resources, too, are expected to be lower than the Budget estimate of 2013-14 by 5.3 per cent.