New Delhi: Budgetary shore up to the Indian Railways may be reduced by at least Rs 150 billion or 27 percent in the forthcoming Union Budget 2018, indicated a report on Business Standard.
It is no hush-hush that the railways are finding it hard to uphold a profit, due to a number of conditions and factors.
So, the new improvement is a big drive to the Indian Railways and it will have to depend on borrowings, selling assets, and other means to have the apex target of 1.31 trillion, added the BS report.
Earlier Finance Minister Arun Jaitley had pledged a gross budgetary support (GBS) of Rs 550 billion for the railways, but a fall in returns has forced the government to incise budget spending for firm sectors.
The BS report also shed light on the fact that the revised budget support for Indian Railways in financial year 2018 will be at least 13 percent less than the revised estimates of Rs 463.5 billion in financial year 2017. A person in the know-how of the present situation told the business daily that the railways will now dig up Rs 400 billion during the RE or revised estimates stage.
At a time when the railways’ center of attention is on stirring safety measures and renovation, the move seems to be a massive blow. However, officials said that the cut in financial support will not affect the capex target or any of the ongoing developmental projects.
It has also appeared that out of the Rs 1.46 trillion Play Outlay proposed by the Indian Railways, about Rs 600 billion was projected from GBS.