Congress got to present its first Railway Budget in a while. It looks neat given the constraints. I am not too keyed up about the cosmetic announcements like new trains and wi-fi facilities in select trains (as long as I dont travel in them). But I notice a distinct change in reformist measures:
One, Operating Ratio is lowered from 96% to 88% which means this will ease off the fiscal deficit for FY 2014. Its a sign of increasing efficiency and rationalising unnecessary expenditure.
Two, for the first time, freight traffic is linked to fuel price hikes. This means you can't rule out future price hikes as and when fuel prices go up. Its a courageous decisionn that will again bear out favorably on deficit concerns.
Lastly, some steps are taken to increase financial management best practices in the 1.4 million odd workforce organisation, ensure those who retire midlife get recouped materially and improve the safety record of Railways overal. These are all welcome changes and must be appreciated despite our continuing cynicism aggainst a corrupt regime.
The British have laid 95 per cent of the Railway lines we use in the country - and for many years, Railway Budgets (including Congress) became titular exercises filling the pink paper stories. After a long time, I find some steam in the engines. Look beneath and there are strategic gems as well here and there: Arunachal Pradesh is being reined into Railroad network in order to thwart the ambitious Chinese staking claim on its sovereignity. Also, we should not infer too much from this thing called Railway Budget. The total expenditure is to the tune of Rs.140,000 crores, while our GDP is around Rs.80 lac crores - so Railway Budget is just 1.6/80 = 2 per cent or less than 10 per cent of our GDP.As I keep saying, the Congress may be a bunch of rogues but every tough economic decision are taken by them first before others can take credit. Over now to the Economic Survey 2013 - for the first time, penned by Raghuram Rajan, the masterly author of "Faultlines" arguably, the best book on the Crisis. See you tomorrow.
One, Operating Ratio is lowered from 96% to 88% which means this will ease off the fiscal deficit for FY 2014. Its a sign of increasing efficiency and rationalising unnecessary expenditure.
Two, for the first time, freight traffic is linked to fuel price hikes. This means you can't rule out future price hikes as and when fuel prices go up. Its a courageous decisionn that will again bear out favorably on deficit concerns.
Lastly, some steps are taken to increase financial management best practices in the 1.4 million odd workforce organisation, ensure those who retire midlife get recouped materially and improve the safety record of Railways overal. These are all welcome changes and must be appreciated despite our continuing cynicism aggainst a corrupt regime.
The British have laid 95 per cent of the Railway lines we use in the country - and for many years, Railway Budgets (including Congress) became titular exercises filling the pink paper stories. After a long time, I find some steam in the engines. Look beneath and there are strategic gems as well here and there: Arunachal Pradesh is being reined into Railroad network in order to thwart the ambitious Chinese staking claim on its sovereignity. Also, we should not infer too much from this thing called Railway Budget. The total expenditure is to the tune of Rs.140,000 crores, while our GDP is around Rs.80 lac crores - so Railway Budget is just 1.6/80 = 2 per cent or less than 10 per cent of our GDP.As I keep saying, the Congress may be a bunch of rogues but every tough economic decision are taken by them first before others can take credit. Over now to the Economic Survey 2013 - for the first time, penned by Raghuram Rajan, the masterly author of "Faultlines" arguably, the best book on the Crisis. See you tomorrow.
