Union Budget 2018, Railways: Rising costs worrying signal

The pension bill has increased to Rs 48,000 crore next year from Rs 45,250 crore this year. Ordinary working expenses, which include staff cost and fuel bill, has increased to Rs 1.38 lakh crore — a six per cent increase. On the other hand, its annual growth in revenue is pegged at just about seven per cent.

For the Railways’ book-keepers, it’s a tightrope walk because the projected surplus of revenue overspending is estimated at Rs 12,990 crore. Considering the revenue target is pegged to be more than the Revised Estimates, achieving the surplus by the end of next fiscal would be a tough task, said officials.

Earnings from goods as well as passenger fare have seen a modest four per cent hike vis-a-vis revised estimates. Non-fare earnings are pegged at over Rs 20,000 crore, which is Rs 6,000 crore more than what it expects to earn in this nascent segment by the end this year. Other “coaching earnings” are expected to earn an additional Rs 6,000 crore.

The appropriation to the Depreciation Reserve Fund, which is money set aside from revenues to renew overaged assets over time, has seen a 90 per cent dip to just Rs 500 crore.

Railway unions are skeptical about the Budget plan, calling it “overcapitalisation”. “Earnings targets are not realistic while the spending is based on so much of borrowings that it feels like a plan to dent the finances of Railways,” said Shiv Gopal Mishra, head of the All India Railwaymen’s Federation, the largest union of Railways.

The other union, National Federation of Indian Railwaymen, said the Budget does not have any roadmap for the benefit of railway workers.