How the Railways tweaked reserve funds

How the Railways tweaked reserve funds

An analysis shows the ministry had cut its appropriation to PF by Rs 400 cr and that to Depreciation Reserve Fund by a sharp 30% or Rs 2,400 cr

A simple tweaking of resources meant to be appropriated into the Depreciation Reserve Fund (DRF) for the Indian Railways seems to have emerged as a major face-saver for Railway Minister Suresh Prabhu in this year's rail Budget. The rail ministry has cut down the funds meant for DRF to show a less unwholesome operating ratio, the parameter on which the Railways' financial health is judged.

DFR is one of the five key funds maintained by the Railway Board and is channelled to meet expenditure for upkeep and replacement of crucial assets including railway tracks. The operating ratio represents the amount of money spent to earn every Rs 100 and acts as a yardstick of financial prudence.

Source:Business-Standard