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 gets 125 mn euro German loan for green energy projects

    New Delhi, Oct 6 (IANS) India and the German government-owned development bank KFW have signed two loan agreements worth euro 125 million for financing two projects under the Green Energy Corridor project, ... …

  • Risking backlash, Modi to push power price hikes

    Prime Minister Narendra Modi is to tell states to raise electricity prices in return for access to a financial bailout package, a politically contentious move that risks a backlash from farmers and consumers long used to free or cheap power. Modi has made overhauling India's largely loss-making utilities, buckling under $66 billion of debts, a priority, convinced that if he can fix their finances he will recover his reputation as an economic reformer willing to take tough decisions. State-run …

  • Jharkhand to get Rs.720 crore as royalty for coal-bed methane

    Ranchi, Oct 6 (IANS) Indian exploration major ONGC said on Tuesday Jharkhand would get Rs.720 crore as royalty for producing coal-bed methane (CBM). This will help in CBM generation for the next 15-20 years and also provide royalty worth Rs.720 crore to the state government," said ONGC chairman and managing director Dinesh Sarraf during a meeting with Chief Minister Raghubar Das. "The ONGC team is enthusiastic of the fact that Jharkhand ranks third in the country in the area of ease of doing …

  • Gold gains on softer dollar, views on Fed rate outlook
    Gold gains on softer dollar, views on Fed rate outlook

    Gold continued to gain on Tuesday as the dollar eased in the wake of disappointing U.S. economic data that has raised doubts over a Federal Reserve rate rise this year. Spot gold ticked up 0.2 percent to $1,138.11 an ounce by 1156 GMT. …

  • Oil up 4 percent; market eyes less U.S. output, Saudi-Russia talks
    Oil up 4 percent; market eyes less U.S. output, Saudi-Russia talks

    Crude prices jumped about 4 percent on Tuesday after No. 1 oil consumer the United States cut output forecasts and Russia, Saudi Arabia and other big producers signaled joint action to support the market. West Texas Intermediate (WTI), the U.S. crude benchmark, rose $1.64, or 3.6 percent, at $47.90. On Tuesday, the U.S. Energy Information Administration projected in its monthly forecast that the country's crude output will fall through mid-2016. …

  • PepsiCo profit beats as costs fall, N.America sales rise
    PepsiCo profit beats as costs fall, N.America sales rise

    PepsiCo has been introducing beverages with less sugar and more natural ingredients as consumers in North America, its biggest market, turn calorie-conscious and opt for products perceived as healthier. Shares of the company, whose non-carbonated beverages include energy drink Gatorade, Lipton teas and Tropicana fruit juices, were up 2.2 percent to $97.90 in mid-morning trading. "The innovation in North American beverage is working really well right now," Chief Financial Officer Hugh Johnston …

  • Reliance MediaWorks sells 9.75 percent stake in Prime Focus

    Mumbai, Oct 6 (IANS) Media services provider Prime Focus on Tuesday said that its stakeholder Reliance MediaWorks has sold 2.91 crore shares or 9.75 percent stake in the company through an open market transaction. In a regulatory filing to the Bombay Stock Exchange (BSE), the company said that the open market transaction took place on September 24 and that after the share sale Reliance MediaWorks' stake in Prime Focus has come down to 35.11 percent. The deal has been estimated at be worth …

  • India's Coffee Day sets price band for up to $176 mln IPO - sources
    India's Coffee Day sets price band for up to $176 mln IPO - sources

    The company behind Cafe Coffee Day, India's biggest homegrown coffee chain, has set the price band for its up to $176 million initial public offering of shares at between 316 rupees and 328 rupees a share, ... …



  • 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.