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Indian Railways’ finances are back on track after the initial setback it received following the implementation of the Fifth Pay Commission. A distinct improvement is visible after 2000-2001. The increase in working expenses has been brought under control and earnings are also improving.
As a result, operating ratio has improved gradually from 98.3 in 2000-2001 to 92.6 in 2004-2005 (Budget Estimates). It is likely to go up below 92, which means to earn Rs. 100, Indian Railways spend less than Rs. 92.
The loan of Rs. 249 crores taken for financing the Railways Plan in 2000-2001, has been paid in 2001-2002. Railways are able not only to clear the full dividend liability paid to General Revenues from 2002-2003 onwards, they have also started clearing the deferred dividend liability of Rs. 2823 crores, with Rs. 350 crores already cleared and provision of Rs. 300 crores made in the current financial year (2004-2005).
Fund balances have registered significant build-up from Rs. 149 crores in 1999-2000 to Rs. 4609 crores in 2004-2005 (Budget Estimates).
Plan outlay has post a growth of over 50 per cent from Rs. 9057 crores in 1999-2000 to Rs. 14498 crores in 2004-2005 (Budget Estimates). Special Railway Safety Fund of Rs. 17,000 crores has been set up for replacement of overdue planned renewal of assets by the end of the current Tenth Plan.
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