Railways seeks `38 cr GBS, budget low-key
Hit by fund constraints, the railways is to seek `38,000 crore in the form of gross budgetary support, with indications that its budget in 2013-14 would be low key.
The railways has also estimated that its internal accrual to support its annual plan would dip from the `10,000 crore in 2012-14 to `7,000 crore in the next financial year due to additional outgo to foot the diesel bill.
The railways had got `24,000 crore from the government in the form of the gross budgetary support in the last financial year. The railways is also in a change of approach is likely to focus on completion of already announced projects. “Projects worth `1.57 lakh crores are in the pipeline. We hope to complete some of these projects, which will bring down our financial commitments in the coming years. The focus is clearly on completion,” said a senior official.
However, the railways may not get its demand of `38,000 crore in the form of gross budgetary support, as the Central government has indicated on cutting down its fiscal deficit.
The railways had cut down its annual plan size from `60,000 crore for 2012-13 to `51,000 crore due to financial constraints even after resorting to the passenger fare hike after a decade.
“The railways had an internal accrual of `10,000 crore till December 2011 but the hike in diesel prices will make us to increase the revenue expenditure by 14 per cent. Therefore, the internal accrual may not be more than `7000 crore in the next financial year,” added the official.
The railways is also groping for clues on ways to fund its ambitious high speed rail corridor between Ahmedabad and Mumbai, which would cost a whopping `61,000 crore to build about 535 km long stretch.
“It’s to be seen how much additional revenue we can mop up through measures to be announced in this month’s budget. The freight and passenger fare hike is clearly an option before the minister,” said the official.
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