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

  • Gold near multi-year lows as U.S. data supports rate hike view
    Gold near multi-year lows as U.S. data supports rate hike view

    Gold hovered close to its lowest in nearly six years on Thursday, as the dollar held at multi-month highs and U.S. economic data reinforced market expectations of an interest rate hike this year. * Spot gold (XAU=) was little changed at $1,070.80 an ounce by 0031 GMT, after dropping 0.4 percent on Wednesday. * Data on Wednesday showed that U.S. manufacturing output rose well above economists' expectations in October, while business spending plans surged. …

  • Brazil corruption probe widens; Senate leader, BTG Pactual CEO arreste …

    SAO PAULO/BRASILIA (Reuters) - The chief executive of Brazil's biggest independent investment bank and the leading senator in the governing coalition were arrested on Wednesday on suspicion of obstructing the country's most sweeping corruption investigation ever. The detention of such prominent power brokers on orders from the Supreme Court raised the stakes dramatically in a bribery scandal that started with state-run oil company Petrobras and now threatens the heights of Brazilian banking …

  • Asian shares edge up, euro under pressure as ECB looms
    Asian shares edge up, euro under pressure as ECB looms

    Asian shares advanced in early trade on Thursday, while growing bets the European Central Bank was gearing up to deliver further stimulus steps kept the euro under pressure. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) edged up about 0.4 percent, after Wall Street put in a nearly flat performance ahead of the U.S. Thanksgiving holiday. Japan's Nikkei (.N225) added 0.5 percent in early trade. …

  • Dow predicts EPA review of herbicide safety resolved soon

    Dow Chemical Co (DOW.N) expects environmental safety concerns about its new herbicide Enlist Duo to be resolved, the company said Wednesday, after the government asked a federal appellate court to pull regulatory approvals while the chemical's safety is re-examined. The U.S. Environmental Protection Agency (EPA) approved Enlist Duo for sale and use in several U.S. states over a year ago. Enlist Duo is a new combination herbicide aimed at combating weeds that have become resistant to …

  • HP Inc plunges after printer business underwhelms

    HP Inc's revenue from both its printer and PC businesses fell 14 percent each in the fourth quarter, their worst performance in the year ended Oct. 31, and forecast current-quarter profit below market expectations. HP Inc Chief Executive Dion Weisler called the printing business a "much greater challenge" than the PC business. Revenue from HP Inc's printer supplies such as ink cartridges and laser toner fell 10 percent this quarter. …

  • Tesco in $12 million U.S. settlement over accounting scandal

    Tesco Plc (TSCO.L) has agreed to pay $12 million (8 million pounds) to settle a U.S. shareholder lawsuit claiming that accounting irregularities inflated the share price of Britain's largest retailer. The all-cash settlement was disclosed in filings on Wednesday in the U.S. District Court in Manhattan, and requires court approval. Tesco denied wrongdoing in agreeing to settle, court papers show. …

  • Euro in the doldrums on ECB easing views
    Euro in the doldrums on ECB easing views

    The euro remained shaky early on Thursday, having slid to its lowest in over seven months on the prospect of further policy stimulus from the European Central Bank (ECB). ECB officials told Reuters they are considering options such as whether to stagger charges on banks hoarding cash or to buy more debt, ahead of next week's policy review. While the ECB declined to comment, the market impact was swift. …

  • Euro off as ECB seen easing further; Wall Street ends flat
    Euro off as ECB seen easing further; Wall Street ends flat

    The U.S. dollar gained and the euro briefly hit a seven-month low on Wednesday in a volatile session on views the European Central Bank will ease monetary policy further, including buying more debt and charging banks for hoarding cash. …


  • IIM Ahmedabad is the best B-school in 2015

    The 54-year-old institute is not only drawing on its traditional strengths, but is also taking wings to meet the demands of the emerging new world of business. …

  • Change is only constant at these four B-schools

    It is the best of times for B-school students. And if they happen to be at the top four schools after IIM-Ahmedabad - IIM Calcutta, XLRI, SP Jain Institute of Management & Research and MDI- it is certainly ... …

  • India's best management schools for 2015

    The eagerly-awaited issue of Business Today is here. Find out which B-school has topped the list this time. …

  • Built To Last

    Six lesser-known infrastructure companies have prospered despite adverse economic circumstances. …

  • Sweeten your e-Deals

    Shopping online this festive season can be fun if you read the fine print carefully. …

  • Exercise Caution

    The IPO market is buoyant with a healthy line-up of issues, but investors should be cautious. …

  • No Headline

    Six lesser-known infrastructure companies have prospered despite adverse economic circumstances. …


  • Most Actives
    Most Actives
    NamePriceChange% Chg
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg


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.
to view quotes in your portfolios.

Yahoo Cricket