Rail Budget 2016-17: Decoding 10 Big points From Suresh Prabhu’s Speech
Railway Minister Suresh Prabhu announced a sharp rise in plan outlay for the next financial year. He also announced new projects and more rail tracks in a departure from his previous budget.
Here are 10 big numbers from Mr Prabhu’s rail budget
1) Railways’ operating ratio will be 90 per cent against the targeted 88.5 per cent for 2015-16. So, railways will spend 90 paise for each rupee of revenue, more than what it previously anticipated. For FY17, the railways’ operating ratio will go up to 92 per cent because of the impact of the 7th Pay Commission, which had recommended a total pay hike of Rs. 28,450 crore for 2.6 million railway employees and pensioners.
2) Railways is aiming to hit revenues of Rs. 1.84 lakh croreduring 2016-17 financial year.
3) Rs. 1.21 lakh crore will be spent on capital expenditure by railways during 2016-17, a 20 per cent hike in plan outlay over last year.
4) Railways will get Rs. 40,000 crore during 2016-17 asbudgetary support from the central government. Last year, Finance Minister Arun Jaitley had provided Rs. 40,000 crore for railways, but this amount was cut by a fifth after railways failed to spend money in time.
5) Rs. 1.5 lakh crore will be funded by state-run LIC over the next five years towards railways’ modernisation plan. LIC will lend the money at favourable terms, Mr Prabhu said. The railways plans to spend Rs. 8.5 lakh crore on infrastructure in five years.
6) Railways will save Rs. 8,720 crore in 2015-16 on account of lower fuel and electricity costs.
7) 2,800 km of new tracks will be commissioned during 2016-17, much higher than the average of 200 km of tracks added per year since independence.
8) Railway electrification to be increased by 50 per cent to2,000 km route during FY17.
9) Rs. 30,000 crore is the loss on subsidising passenger faresduring 2015-16 financial year.
10) Make in India: Railways will build two new locomotive factories at cost of Rs. 40,000 crore.