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Rediff.com  » Business » Railway surplus to double to Rs 1,976 cr

Railway surplus to double to Rs 1,976 cr

Source: PTI
Last updated on: February 26, 2005 14:53 IST
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Indian Railways expect to more than double their surplus to Rs 1,975.98 crore (Rs 19.75 billion) in 2005-06 compared to the target set for this fiscal thanks to higher earnings and sustained growth in transport and economy.

The country's biggest public utility performed credibly to exceed the budget target of Rs 873 crore (Rs 8.73 billion) of 2004-05 to clock a surplus estimated at Rs 1,725 crore (Rs 17.25 billion) despite Railway Minister Lalu Prasad not resorting to any hike in passenger and freight tariffs in his maiden budget last year.

This improved performance perhaps prompted him to spare consumers this year also and yet target a surplus of Rs 1,975.98 crore next fiscal even after paying a higher dividend to the government, according to the Railway Budget presented in Parliament.

The surplus budgeted for 2005-06 is considerably higher than the revised estimate of Rs 1,724.80 crore (Rs 17.24 billion) and more than double the budgeted Rs 873 crore for 2004-05.

Prasad said the gross traffic receipts of Railways was budgeted at Rs 50,968 crore (Rs 509.68 billion) for 2005-06 from the revised estimate of Rs 46,785 crore (Rs 467. 85 billion) this fiscal.

The total working expenses of the Railways would go up marginally to Rs 46,144 crore (Rs 461.44 billion) next fiscal from the revised estimate of Rs 42,462 crore (Rs 424. 62 billion) in 2004-05.

Railway Budget 2005-06: Complete Coverage

Higher expenses were due to higher provisions for Depreciation Reserve Fund, pension bill and ordinary expenses.

The railways' pension bill is budgeted at Rs 6,940 crore (Rs 69.40 billion) next fiscal compared to revised estimate of Rs 6,540 crore (Rs 65.40 billion) and Rs 6,290 crore (Rs 62.90 billion) budgeted for 2004-05.

The railways have budgeted Rs 3,604 crore (Rs 34.04 billion) for appropriation to the Depreciation Reserve Fund for 2005-06, much higher than the revised estimate of Rs 2,662 crore (Rs 26.62 billion) for this year.

The ordinary working expenses was budgeted higher at Rs 35,600 crore for the next fiscal compared to the revised Rs 33,260 crore (Rs 332 .6 billion) for 2004-05.

Railways' net revenues would increase to Rs 5,914 crore (Rs 59.14 billion) in 2005-06 from revised estimate of Rs 5,301 crore (Rs 53.01 billion) in 2004-05.

With this, the ratio of net revenue to capital-at-charge and investment from capital fund is budgeted at 9.1 per cent for 2005-06 compared to 7.4 per cent budgeted and revised estimate of 8.7 per cent for this fiscal.

The total dividend payable to government was budgeted at Rs 3,938 crore (Rs 39.38 billion) for 2005-06, higher than the revised estimate of Rs 3,576 crore (Rs 35.76 billion) this fiscal.

However, the revised estimate for the dividend to be paid to the government shows a decline from the Rs 3,605 crore (Rs 36.05 billion) budgeted for this fiscal.

The railways have budgeted over two-fold growth in development fund at Rs 1,852 crore (Rs 18.52 billion) for 2005-06 compared to the budget estimate of Rs 715 crore (Rs 7.15 billion) this year, which was considerably revised up to Rs 1,724.8 crore (Rs 17.24 billion) in this year.

The provisions for the special railway safety fund have been lowered to Rs 123 crore (Rs 1.23 billion) next fiscal from Rs 158 crore (Rs 1.58 billion) budgeted for this year.

With higher earnings, the Railways hope to lower operating ratio to 90.8 per cent next fiscal from 92.6 per cent budgeted for 2004-05 and the revised estimate of 91.2 per cent.

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