Why is the railway budget always presented different from the regular budget?

Why is the railway budget always presented different from the regular budget?

Why did the British do so, why did they feel that the railway budget is to be different from the regular budget?

Why is the railway budget always presented different from the regular budget?

New Delhi: Modi Government is about to present the railway budget on 26th February. Like railways, the railway budget also has a special importance within itself. The history of presenting the same has its origin from before independence. Actually, the declaration of separately presenting the railway budget was done during the British reign. Moreover, in the general budget meeting, the railway receipts and expenditures are only being discussed. Let us now look into the history of railway budget and certain related facts. 

Earlier the railway and general budget were presented together. Why was the railway budget presented separately after the Government Departmental undertaking? To know this, we are supposed to be aware of the beginning of the Indian Budgeting system. Before year 1859, during the British rule, there was nothing called ‘Budget’ in India. In this year, British Viceroy Lord Conning appointed James Wilson as a member of his finance committee. Under Wilson’s initiative, in 1860 the budget was presented in the Viceroy’s council for the first time. This budget also contained details on the railways. For this reason, James Wilson is called as the father of our Indian Budgeting system. A separate budget for railways was first presented in the year 1924. In 1921, the chairman of the East India Railway Committee Mr William Acworh noticed that the entire Railway system wanted a better management. In 1924, he proposed that the Railway budget is to be separated from the normal budget. For this, in 1920-21 a ten man committee was formed. This committee was formed under the leadership of British economist William M 

Acworth. The Acworth committee suggested that the Railway budget is to be presented separate from the normal budget. It was reasoned that, the Railway department as a separate entity was hosting a number of economic activities. In 1924, the share of the Railway budget was 70 percent of the total budget. Considering the budget of 1924, the railway budget comprised around 70 percent share of the total budget. Noticing the large share of the Railway budget in the National budget, the proposal of William to separate the Railway budget from the National budget was accepted. Since then till date, the railway budget has been presented separate from the general budget. When the Railway budget was separated from the normal budget, the utilisation of Railways comprised 75 percent of the public transport and 90 percent of Freight transportation.

Source: www.govemployees.in