Move will enhance commercial viability

Description

The practice of the sepa rate Railway Budget started in 1924, follow ing the recommendations of William Acworth, British railway economist. As Railways were a commercial enterprise, and operated by different entities in India, the government consolidated the operations of all railways working in India from 1853. The practice continued well into the Independence period, initially justified on the grounds that Railways are special and serve a social objective in transporting goods in absence of any well-developed alter natives. Since then, an excellent network of roads and airlines has been established diminishing this special role, and therefore, the focus on railways in Indian economy.There was no justification for having a separate Railway Budget, as many similar entities are covered under the Union Budget such as postal services, and many other public sector enterprises. A separate budget presented to the Parliament can distort priorities by unduly exposing railways to parliamentary politics, often limited to introducing or running of special trains to favoured constituencies. Once, the Railway Budget is subsumed in the Union budget, Railway officials can focus professionally on pertinent issues like commercial viability of operations, appropriate pricing of passenger and freight fares, and technological enhancements. The operations of suburban segments would also be examined on a professional basis. The railways ministry and employees could focus on policy issues to enhance efficiency and profitability in their operations without worrying about political scrutiny and ramifications. Read more at: https://timesofindia.indiatimes.com/city/bengaluru/Move-will-enhance-commercial-viability/articleshow/54284802.cms

Publication Date

12-9-2016

Publication Title

The Times of India

Publisher

Bennett, Coleman & Co. Ltd.

Keywords

Transportation, Union budget, Budgeting, Railway budget, Railways

Source Link URL

https://timesofindia.indiatimes.com/city/bengaluru/Move-will-enhance-commercial-viability/articleshow/54284802.cms

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