News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« Budget Extravaganza »
 India’s budget math faces a credibility challenge
 From income tax slab changes to 80C limit extension, 5 key things to expect from the upcoming Union Budget
 Know latest income tax slabs and rates before Union Budget 2019 Filing tax return
 How to reduce your income tax outgo with Budget 2019 provisions
 How your taxes and investments could be affected by the budget
 Here is what you got to pay Interim Budget 2019 Tax Calculator
 Income tax changes introduced by the BJP govt in the past 5 budgets
 Will your salary structure change once again? Budget 2019
 Budget 2019: Big relief to middle class likely, tax exemption might go up to this limit
 Will Budget 2019 be startup friendly? Know what major reforms can take place; from tax structure to reducing MAT
 Will interim Budget 2019 reduce your tax?

Poor railway performance may mar merged Budget
October, 04th 2016

The government’s decision to merge the Railway Budget with the General Budget may turn out to be an addition of two paragraphs from the former into the latter.

The debut Budget, to be read by the minister of finance, might not be noteworthy, as there is a likelihood of the national transporter seeking government loan to get over its revenue shortfall for this year.

“Revenue has not picked up despite rationalisation of freight rates and introduction of premium pricing. It could be that the revenue falls short of expenditure and we will have to borrow from the ministry of finance. If this happens, it will be disastrous,” said a senior railway official.

The railways has never borrowed to meet its operational expenses. In the current year, the national carrier had to bear an additional burden of about Rs 40,000 crore on account of implementation of the Seventh Pay Commission, besides an annual outgo of Rs 33,000 crore on subsidies for passenger service.

Barring the Budget speech, all the documents presented with the Railway Budget, including the Explanatory Memorandum and the Pink Book of railway projects, will be tabled in Parliament. These are not likely to be part of any annexes. The appropriation account, however, might be merged.

“The various funds of the railway ministry, like the Pension Fund, Depreciation Reserve Fund, would continue to be part of the documents,” said the official.

The change in who delivers the speech would, however, effectively put the onus of railways’ performance and every related decision on the minister of finance, he said. The railways’ autonomy on operational matters would continue.

It is yet to be decided which ministry would take a call on changes in freight rates and passenger fare. There is a proposal to set up a Railway Development Authority to recommend the changes. But whether it would be the ministry of finance or of railways which would take a decision was not yet clear, said the official.

The finance minister might choose to announce the authority’s powers in the Budget itself.

Tricky issues of who bears the social service obligation of the railways, operational expenditure on un-economic branch lines and so on are still be decided. Officials in the ministries of railway and finance are currently working on the nitty-gritties, as the Cabinet decision to merge the Budgets had left certain issues unclear.

Officials in the ministry of railways said political interference might not completely evaporate, though the decision would be taken by the minister of finance.

The government had, on September 21, announced that the 92-year-old practice of presenting the Railway Budget would be put to end by merging it with the General Budget. Finance Minister Arun Jaitley had said the functional autonomy of the railways would be maintained.

Following the merger, the railways would not have to pay dividend to the central government though it would still get gross budgetary support from the exchequer. The salary and pension bills of railway employees would remain the responsibility of the railways.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions