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

  • India Inc expects Modi government focus on rural economy: Assocham

    New Delhi, May 24 (IANS) On the eve of the Narendra Modi government completing one year in office, industry body Assocham said on Sunday that it expects further reform initiatives in the next two quarters along with more attention to the rural economy. "Having taken several initiatives to unclog infrastructure projects and improve ease of doing business, Prime Minister Narendra Modi's government is expected to ive increased attention to the rural economy, although several of the financial …

  • Modi is effective but graft, land bill, inflation remain issues: Surve …

    New Delhi, May 24 (IANS) Seventy-two percent of the people feel satisfied with the performance of Prime Minister Narendra Modi, according to a survey on one year of his government, but the majority also sees no let-up in graft, and more seem opposed to than supportive of his controversial land acquisition bill. According to the survey conducted by Axis My India for IBN Network/#Modi365, the majority of the 20,000 people polled in 23 states, across 155 districts, with a 70:30 rural-urban …

  • Jaitley, I-T brass meeting Monday on non-adversarial tax regime

    New Delhi, May 24 (IANS) Finance Minister Arun Jaitley will on Monday address tax commissioners and director generals of income tax at their annual conference here that will deliberate, among other things, on strategies for providing a non-adversarial tax regime. The two-day conference will also be attended by Minister of State for Finance Jayant Sinha and Revenue Secretary Shaktikanta Das, and addressed by two guest speakers - NITI Aayog vice chairman Arvind Panagariya and Bharat Forge Ltd. …

  • 'One glance' is all you'll need to unlock this 1st 'iris-scan' smartph …

    London, May 24 (ANI): A new Japanese smartphone, which is the first device to ever own an eye scanning feature to enable activation, is about to hit the shelves. …

  • Toshiba establishes committee to monitor appropriateness of projects

    Tokyo, May 24 (ANI): Toshiba Corporation has established an Independent Investigation Committee to check the appropriateness of the projects undertaken by the company. …

  • Modi is effective but graft, land bill, inflation remain: Survey

    New Delhi, May 24 (IANS) Seventy-two percent of the people feel satisfied with the performance of Prime Minister Narendra Modi, according to a survey on one year of his government, but the majority also sees no let-up in graft, and more seem opposed to than supportive of his controversial land acquisition bill. According to the survey conducted by Axis My India for IBN Network/#Modi365, the majority of the 20,000 people polled in 23 states, across 155 districts, with a 70:30 rural-urban …

  • Euphoria gone but hope yet for realty industry (Comment. One Year of Modi …

    For India's realty industry, the initial euphoria has died down and the high expectations have also moderated in the absence of swift relief, as the Prime Minister Narendra Modi government concludes one year in office on Tuesday. It's taking longer than expected for 'Achhe Din' -- or the good days promised by Modi -- to arrive for the real estate industry, which is reeling under liquidity crunch, slow sales and high unsold inventory. This is because the government is working on a …

  • Google updates maps with traffic alerts

    Washington, May 24 (ANI): Google has updated its maps with a traffic alerts feature that brings explanations as to why various routes will be faster. …

DON'T MISS

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    282.45-6.90-2.38%
    SBIN.BO
    26.10+3.10+13.48%
    PUNJLLOYD.BO
    25.05-0.25-0.99%
    SUZLON.BO
    11.89+0.60+5.31%
    RENUKA.BO
    14.15-0.15-1.05%
    UNITECH.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    468.00+78.00+20.00%
    DFM.BO
    272.40+45.40+20.00%
    RUPA.BO
    92.47+15.41+20.00%
    MANVIJAY.BO
    109.34+18.22+20.00%
    VBIND.BO
    125.25+20.85+19.97%
    SANGAMIND.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    209.70-52.40-19.99%
    INFINITE.BO
    58.10-14.50-19.97%
    SMADL.BO
    95.70-23.00-19.38%
    RISAINTL.BO
    9.00-2.10-18.92%
    AANCHALISP.BO
    9.93-2.16-17.87%
    NEXTMEDIA.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.

Yahoo Cricket