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Interim Railway budget

Interim Railway budget.
Growth targets maintained despite slowdown, sixth pay commission impacts operating ratio, passengers get some relief Interim budget was largely in line with expectations with no major strategic initiatives announced for the next fiscal
While freight rates maintained at FY09 levels, marginal relief has been given on passenger fares The growth targets for freight volumes and total earnings have been
maintained at the budgeted levels despite the economic slowdown.

Significantly high expenditure for the sixth pay commission as compared to the budgeted levels has dented operating ratio at 88.3%. Ratio for FY10 expected to remain at those levels.The total plan outlay target has been marginally revised to Rs.367.73bn for FY09. Mr. yadav has set a target to invest Rs.2.3trn over the 11th five year plan.

Key points.
FY09 growth targets maintained despite slowdown.
The budget has maintained the targets for growth in FY09 at near the budgeted levels. Gross earnings are expected to grow by 15% to Rs.823.9bn of which, freight earnings are expected to be Rs.543bn and passenger receipts, Rs.223bn. Freight volumes are also expected to reach the budgeted levels of 850mn tones in FY09.

Operating ratio significantly impacted.
The operating ratio was budgeted to improve to 76.3% in FY09. However, the revised estimates for FY09 have put the ratio at 88.3%. The deterioration is mainly because of the significantly high burden of the sixth pay commission recommendations.
Freight earnings FY10 freight volumes have been budgeted at 910mn tones v/s the revised estimates of 850mn tones for FY09. The freight earnings also are expected to rise by about 9%.
Freight earnings.
FY10 freight volumes have been budgeted at 910mn tones v/s the revised estimates of 850mn tones for FY09. The freight earnings also are expected to rise by about 9%.
Interim Railway budget Interim Railway budget Reviewed by admin on 5:32:00 PM Rating: 5
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