Indian Railway Budget 2015-16- net income and expenditure remain same as previous year

27/02/2015

Gross receipts of Indian Railways  estimated for 2015-16 at Rs.183578 crores is higher by only 15% than the Revised Estimates 2014-15.of Rs.159248 crores.Dearness Allowance of the employees during 2014-15 has increased about this much percentage. Materials cost has also gone up this percentage. Thus the net budget estimates 2015-16 of receipts is almost same as the Revised Estimates 2014-15. The receipts should have been aimed at least at Rs.200,000 crores. This could have been made possible if passenger fares have been increased by about 10% and the freight rates by higher percentage.The oil prices have come down but considering the large number of projects to be undertaken the receipts should have been aimed more.

Similarly Budget Estimates 2015-16 of expenditure is placed at Rs.174291 crores which is higher by only about 12% than the Revised Estimates 2014-15 at Rs.156172 crores, Discounting the inflation, there is practically no increase in expenditure  which means that from the earnings of the Railways there will be no developmental work.

The estimated increase in income over expenditure is about Rs.10000 crores which is very very low, considering the huge investments made by the government in the last over 150 crores.

Advertisements

Reforming state transport corporations-case of TNSTC

15/02/2015

The government owned Tamilnadu State Transport Corporation and the State Express Transport Corporation with a fleet of about 20000 buses incur loss of around Rs.1000 crores per year. For the benefit of the corporation/government as well as the commuters, buses should be leased at a moderate rate of  around Rs.1000/ per bus per day. The preference should be given to existing drivers and conductors. For around 20000 buses, the government can earn about Rs.750 crores per year against loss of about  RS.1000/- crores. The lease income should be used to provide more amenities to the passengers like providing adequate space for luggage, fans, drinking water,, cleaning the buses at intervals of 8 hours, providing first aid kits at buses, fixing doors at entrance/exit points etc and for buying new buses. The lessees could also be permitted to earn revenue by running advertisements in the closed circuit TVs, written advertisements, collection and delivery of small packets of luggage etc.. The lessees will be allowed to fix bus fares themselves subject to a maximum rate to be decided by the government. They can also be permitted to fix variable rates- different rates for peak hours , lean hours, day time, night time etc.

When the fares are raised substantially, the lease amount can also be raised.


Budget – Funds for scientific research and development

08/02/2015

In the coming budget, the Finance Minister should provide  funds for scientific research and development for the following among others:

1. for all the proposals received from departments of Space, Atomic Enery, Ocean Development, Science and Technology, Meteorological Department, Geological Survey and related departments

2 for private individuals and institutions for carrying on scientific research

3. for matching grants for research by industry

4. for establishing new research organisations

5  for grants to universities/colleges for undertaking research

6.. for supplying laboratory equipment fo universities/ colleges   through University Grants Commission

7. for artificial rain making

8. for research and development of robots

9 for establishment of a separate council for promotion of scientific cooperation with foreign countries and for undertaking joint research projects with foreign countries and international organizations

10. for carrying intensive research through more than one organisation,on alternate fuels,

Considering the fact that at present expenditure on research in India is very low and the fact that many small countries cannot afford to undertake research on account of paucity of funds and inadequacy of research personnel,  the budget allocation for research in 2015-16 should be atleast double that of the allocation in the current year.