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 pares gains as Fed stirs doubt over rate hike timing
    Gold pares gains as Fed stirs doubt over rate hike timing

    NEW YORK/LONDON (Reuters) - Gold pared gains on Friday, while the dollar turned up and U.S. stocks fell, as investors struggled to decipher the timing of a U.S. interest rate increase following comments by Federal Reserve Chair Janet Yellen and other officials. In her much-awaited speech, Yellen said the case for raising U.S. interest rates has strengthened, although increases should be gradual. Spot gold rallied 1.5 percent to $1,341.60 an ounce and the U.S. dollar index fell 0.6 percent …

  • Oil steady in volatile session, down 2 percent for the week
    Oil steady in volatile session, down 2 percent for the week

    Oil prices were largely unchanged on Friday in a volatile session, as traders reacted to comments from Fed Chair Janet Yellen and reports of missile activity in Saudi Arabia. The market was taking its cues from the movement in the dollar, which has been choppy following Yellen's remarks. Prices gathered support briefly from Baker Hughes data showing that U.S. oil drillers kept rig count steady after eight weeks of additions. …

  • BlackBerry to raise $605 million from shareholder Fairfax, others
    BlackBerry to raise $605 million from shareholder Fairfax, others

    The new debt that BlackBerry plans to issue will have a coupon of 3.75 percent and will be due in November 2020. If all of the new debt is converted into stock, it will represent about 11.57 percent of BlackBerry's outstanding shares, the company said. FairFax, led by well-known contrarian investor Prem Watsa, is BlackBerry's second largest shareholder with a stake of about 8.9 percent, according to Reuters data. …

  • Analysis - For the Fed's Yellen 'conventional' unconventional policy is …
    Analysis - For the Fed's Yellen 'conventional' unconventional policy is …

    For all the talk of a radical shift in central banking policy, from the permanent use of negative rates to helicopter money drops, Federal Reserve Chair Janet Yellen appears to believe she can tackle any future downturn using the tools currently at her disposal. Speaking in Jackson Hole, Wyoming, on Friday after a Fed policymaker and other economists proposed a radical overhaul of central banking, Yellen argued that bond purchases and the ability to pay interest on excess reserves as well as …

  • Wall St. falls after Fischer, Yellen comments
    Wall St. falls after Fischer, Yellen comments

    U.S. stocks were lower in a choppy session on Friday, with stocks bouncing between gains and losses as investors grappled with the possible timing of a U.S. interest rate hike after comments from Federal Reserve officials, including Chair Janet Yellen. The S&P 500 rose as much as 0.7 percent in the wake of a speech by Yellen in Jackson Hole, Wyoming that said the case for increasing interest rates had strengthened, but did not indicate when the Fed would raise rates. Yellen told the gathering …

  • Yellen's case for rate hike boosts dollar; stocks surrender gains

    U.S. equities gave up early gains on Friday, hurt by a surging U.S. dollar after Federal Reserve Chair Janet Yellen said that the case for raising U.S. interest rates has strengthened in recent months. European stocks advanced, however, while oil and Treasury prices came off highs as investors across asset classes parsed the details of Yellen's presentation, markets' central focus of the week. In her much-awaited speech during an international gathering of central bankers in Jackson Hole, …

  • Fed's Fischer suggests rate hikes on track for this year - CNBC
    Fed's Fischer suggests rate hikes on track for this year - CNBC

    Federal Reserve Chair Janet Yellen's speech earlier on Friday was consistent with expectations for possible interest rate hikes this year, Fed Vice Chair Stanley Fischer said, reinforcing the message that the U.S. economy has strengthened. Fischer was asked on CNBC whether people should "be on the edge of our seat" for a rate hike in September, and for more than one policy tightening before year end. Hours earlier in Jackson Hole, Wyoming, Yellen said the case for "an increase" in the Fed's …

  • Fed's Yellen says case for interest rate hike has strengthened
    Fed's Yellen says case for interest rate hike has strengthened

    The case for a U.S. interest rate hike has strengthened in recent months because of improvements in the labor market and expectations for solid economic growth, Federal Reserve Chair Janet Yellen said on Friday. Yellen did not indicate when the U.S. central bank might raise rates, but her comments reinforced the view that such a move could come later this year. The Fed has policy meetings scheduled in September, November and December. …

DON'T MISS

  • Why pumping money into PSUs is a bad idea

    Last year, the government provided budgetary and extra budgetary support of Rs 92,000 crore to its companies and only got back Rs 56,000 crore as dividends. Here's why it shouldn't keep throwing more money ... …

  • Coming To Grips

    The evolving institutional framework for financial markets is prompting RBI to shed discretionary powers. …

  • calendar

    Towards Product Nation WHAT: Conference on Building World Class Manufacturing WHEN: 31 August, Noida, UP WHAT TO LOOK FOR: The theme for the third edition of the conference is 'Enhancing National Competitiveness', ... …

  • How to Stabilise Prices

    The determinants of inflation are complex, and change quite quickly …

  • Is Your PF Money Safe?

    Though many companies are defaulting on PF deposits, the problem is far from alarming. …

  • Prabhu's rail reforms face extraordinary odds

    Fixing the Indian Railways won't be easy. It connects the entire country through 68,525 km of route track (in 2014), 12,961 passenger trains, and 8,637 freight trains. It also runs 125 hospitals, 586 polyclinics, ... …

  • Long road ahead for GST before implementation

    The tasks listed so far are the easier ones. The real challenge will be building a consensus on the model GST law and draft rules for Central GST, Integrated GST and State GST. …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    49.70-4.70-8.64%
    WELSPUNIND.BO
    13.09-0.15-1.13%
    GMRINFRA.BO
    56.00+6.20+12.45%
    TRIDENT.BO
    11.26-0.42-3.60%
    JPASSOCIAT.BO
    53.90+2.40+4.66%
    RCOM.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    20.40+3.40+20.00%
    MAINFRA.BO
    20.40+3.40+20.00%
    MALUPAPER.BO
    31.10+5.15+19.85%
    OILCOUNTUB.BO
    22.35+3.70+19.84%
    PICCADIL.BO
    48.95+8.10+19.83%
    BPL.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    213.75-154.30-41.92%
    TCI.BO
    15.65-3.25-17.20%
    DHAMPURE.BO
    61.95-6.80-9.89%
    ATLANTA.BO
    26.40-2.55-8.81%
    UPSURGE.BO
    49.70-4.70-8.64%
    WELSPUNIND.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.