Five takeaways from Budget 2014-15


Railway Minister Mallikarjun Kharge presented the interim budget for the months leading up to the general election amidst great uproar over the Telangana issue. This is the United Progressive Alliance (UPA) government’s last budget ahead of general elections in May 2014.

Usually, new trains are announced while train fares and freight rates are tweaked. This year, things have been a bit different.

Here are five key takeaways:


1)      Shortest budget speech: In every election year, an interim budget is presented. It is a smaller version of the usual full budget. This is called the interim budget, as it only accounts for finances until the election. This holds true for the railways too. As a result, it is not surprising that the budget speech was shorter than usual. However, with the Lok Sabha being adjourned over the issue over the creation of a separate state of Telangana, the budget speech had to be cut further short.

2)      FY13-14 performance: The railway budget shows that its financial performance worsened in the fiscal year. The operating ratio, which compares operating expenses as a percentage of total revenue, rose to 90.2% from the previous target of 87.8%. This shows that expenses have increase in comparison with revenues. Railways also increased total expenses for the FY2013-14 by Rs 560 crore. According to a separate official document seen by DNA, a daily newspaper, Railways has not met its revenue targets. The revenue is Rs 10,000 crore less than targeted, the paper reported. This is additional burden on the government’s finances. However, it expects to earn more than initially estimated from commercial transportation of goods.

3)      FY14-15 expenses and revenue: The ministry expects that it will earn Rs 45,255 crore from passenger ticket fares and Rs 1.05 lakh crore from transportation of goods. Rs 9,700 crore is expected to come from other avenues. All this is expected to help fund expenses worth Rs 1.1 lakh crore.

4)      Rate hikes: There were no significant changes in passenger ticket rates as well as freight tariffs – the amount charged to transport goods. This is because the interim budget predominantly consists of the Vote of Account (VOA). It deals with reporting the financial performance of the railways as an industry in the fiscal year 2013-14 and seeking an approval for expenses. No significant changes in rates are allowed because it would give the current government an upper hand in wooing voters.

5)      New routes and trains: The railway budget announced 17 premium, 38 express, and 10 new passenger trains. It also 7 electric trains for shorter journeys. It also said that surveys will be conducted for 19 new lines and the doubling of 5 other routes in the next fiscal.

This work is produced by Simplus Information Services Pvt Ltd. Customer engagement through content.

Like this article? Click here for more articles from the same provider.

Latest News

  • SBI calls for raising income tax exemption limits

    Mumbai, Jan 23 (IANS) Presenting an agenda for the forthcoming Union Budget at a time when banks are flush with funds post-demonetisation, state-run SBI on Monday called for raising various income tax ... …

  • Bharti Infratel's Q3 net up 25%

    New Delhi, Jan 23 (IANS) Telecom tower infrastructure services provider Bharti Infratel's consolidated net profit went up 25 per cent in the third quarter of 2016-17, the company said on Monday. The company posted a net profit of Rs 620 crore for the October-December period in the current fiscal, compared to Rs 495 crore in the corresponding period in 2015-16, it said in a statement. Post large investments in spectrum, operators are focused on strengthening their network capacities and …

  • Budgetary expectations lift Indian equities

    Mumbai, Jan 23 (IANS) Hopes of budgetary incentives and healthy buying in metal, automobile and oil and gas sectors lifted the Indian equities markets on Monday. However, profit booking at higher levels ... …

  • FRBM Committee submits report on fiscal consolidation roadmap

    New Delhi, Jan 23 (IANS) The Fiscal Responsibility and Budget Management (FRBM) Committee, headed by former Revenue and Expenditure Secretary N.K. Singh, submitted its report to Finance Minister Arun Jaitley on Monday with recommendations on the future fiscal framework and roadmap for the country. The Committee also held interactions with various ministries of Centre as well as with the state governments," it said. …

  • NEXTracker, CleanMax Solar to set up tracker system in Chennai

    New Delhi, Jan 23 (IANS) American solar solutions provider NEXTracker announced on Monday that it is partnering with India's CleanMax Solar to supply a 30 MW solar tracker system to a project in Tamil Nadu. "NEXTracker has partnered with CleanMax Solar, India's largest solar developer for corporate consumers, to supply 30 MW of its advanced NX Horizon single-axis trackers to a project in Tamil Nadu," the US firm said in a statement. …

  • HUL's net profit up 7% in Q3

    Mumbai, Jan 23 (IANS) FMCG major Hindustan Unilever on Monday reported a seven per cent increase in its net profit to Rs 1,037.93 crore in the quarter ended December 31, 2016 as compared to Rs 971.66 crore in the corresponding quarter last fiscal year. …

  • Strong rupee, budgetary expectations lift equities

    Mumbai, Jan 23 (IANS) Rupee appreciation, coupled with hopes of positive incentives in the upcoming Union Budget and broadly positive Asian indices, lifted the Indian equities markets on Monday. The key ... …

  • Global semiconductor revenue to grow 7.2% in 2017: Gartner

    Mumbai, Jan 23 (IANS) Worldwide semiconductor revenue is set to hit $364.1 billion in 2017, an increase of 7.2 per cent from 2016, representing a turnaround for the industry as it experienced 1.5 per cent growth in 2016, market research firm Gartner said on Monday. Gartner has increased the outlook for 2017 by $14.1 billion in its most current forecast, of which the memory market accounts for nearly $10 billion. "The turnaround that started at the end of the second quarter of 2016 will …

DON'T MISS

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    17.53+0.18+1.04%
    SUZLON.BO
    330.85-4.45-1.33%
    GRUH.BO
    80.75-0.40-0.49%
    IBREALEST-.BO
    929.25+21.95+2.42%
    BAJFINANCE.BO
    181.30+9.85+5.75%
    HINDALCO.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    67.80+11.30+20.00%
    BELLACASA.BO
    27.00+4.50+20.00%
    ORIENTHOT.BO
    2,288.85+381.45+20.00%
    BHARATRAS.BO
    215.25+35.85+19.98%
    DHPIND.BO
    133.00+22.15+19.98%
    KATWAUD.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    39.10-4.40-10.11%
    VARDHINDQ.BO
    87.40-9.70-9.99%
    SAPL.BO
    33.45-3.70-9.96%
    ABHIINFRA.BO
    79.90-8.65-9.77%
    BINNY.BO
    20.30-2.10-9.38%
    TRENDELEC.BO

QUOTES

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.