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Economic slowdown may impact railway budget

K. Balchand

— Photo: R.V. Moorthy

Railway Minister Mamata Banerjee takes a look at the budget papers, which will be presented in Parliament on Friday.

NEW DELHI: Railway Minister Mamata Banerjee has said that the Railway budget for 2009-10 will be simple, pro-poor and in tune with the current economic scenario, ruling out high expectations when she presents it on July 3.

It was not surprising that the Trinamool Congress chief even told her party MPs not to expect much from the budget, as it had been prepared under time constraints. She promised them that their pleas for developing rail connectivity and amenities in their constituencies would be addressed in the next budget.

That the economic slowdown will have an impact on the budget is an indication of the limitations the Railway Ministry faces, with a dip in revenue, especially from freight services.

The revenue had taken a hit in the second half of 2008-09 to the extent that it registered a negative growth in a couple of months. On top of it comes the additional burden of Rs.14,000 crore on account of the new pay scales recommended by the Sixth Pay Commission. So, her scope is limited, though her predecessor Lalu Prasad has left behind a cash surplus of Rs. 90,000 crore.

Though Ms. Banerjee sought to have the figure examined, Railway Board officials, both past and present, rule out any scope for fudging and maintain that the accounts department has always been truthful in reporting revenue. The only possibility of getting that envious figure could have been at the cost of depreciation — less funds than what was necessary could have been allocated under the head.

Moreover, Mr. Prasad had tied up a good portion of the surplus for executing various projects, because international funding agencies developed cold feet and private players refusing to enter into joint ventures for setting up production units what with economic uncertainties.

Wednesday’s fuel price increase must have added to Ms. Banerjee’s woes. Further reduction in freight charges will require greater consideration.

Mr. Prasad initiated a few good measures. But he was accused of failure to explain how he had raked the money in. Ms. Banerjee will be required to be more transparent.

She has expressed herself against some of the facilities such as the time allowed to buy Tatkal tickets, the nomenclature of Garib Rath trains and the way the 139 enquiry is operated. The budget underline the human face she intends to give the Railways, from reviving the Janata meal to providing free passes to students and a subsidised ticket for those earning less than Rs. 500 a month.

In the interim budget, her predecessor announced a token cut in fares, besides several new trains. Ms. Banerjee too could be expected to tinker with these issues, besides announcing a few more projects. The new projects will see private players getting a role to in implementation.

Besides safe travelling , Ms. Banerjee has promised to focus on basic amenities such as drinking water, restrooms, quality of food and hygiene.

Needless to say, security will be a priority, what with the Railways being targeted by terrorists, naxalites and aggrieved people wanting to highlight their grievances to the government.

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