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Showing posts with label Expenditure. Show all posts
Showing posts with label Expenditure. Show all posts

Monday, 29 February 2016

11:10

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.

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Wednesday, 10 February 2016

18:27

Railway Budget2016 : Salaries, pension, fuel bills and other expenses take away a majority of Railways’ revenues

Railway Budget 2016 : Salaries, pension, fuel bills and other expenses take away a majority of Railways’ revenues

Railways may roll out huge cost cutting plan next Budget

FACED WITH a deep financial crisis, Railways will commit to a massive cost-cutting mode in the upcoming Rail Budget, targeting to save 15 per cent in its overall expenditure with the mantra: “Money saved is money earned”.

A note went out from Railway Minister Suresh Prabhu’s office last month to all the seven Railway Board members, seeking a detailed plan of action for the reduction of what is called “Ordinary Working Expenses” in the next fiscal to be reflected in the budget. To put things in perspective, these expenses generally see a natural year-on-year increase by around 11-12 per cent, thanks to inflation and other factors.
Railways usually attempts to cut down that increase. Now, the idea is to not only arrest that increase, but to try and reverse it—something Railways is not used to.

Salaries, pension, fuel bills and other expenses take away a majority of Railways’ revenues, leaving next to nothing to invest back into the system. The exigency is felt because the 7th Pay Commission burden translates to an additional expenditure of Rs 32,000 crore next fiscal and Railways is not earning anywhere close to its target and is not likely to earn enough to foot that bill in the normal course, ministry sources said. An easy way out would be to hike fares but that, it is said, is being looked at as a difficult proposition with fuel costs falling and the graph of its passenger business hitting a plateau. Moreover, even a 10-15 per cent hike in fares will not get the desired additional money. This comes close on the heels of the Railway Board instructing zonal railways to look for ways to reduce expenses by 5 per cent and figure out methods to increase earnings by another 5 per cent this year itself in addition to its revised estimates for the ongoing budget year. “The traffic and earnings of Indian Railways have declined considerably and continues to do so,” says the instructions from the Board to its zones. “The requested handholding by the Ministry of Finance through Budgetary support for Capital and financial assistance to meet the 7th Pay Commission impact has not yet met our expectations. The situation therefore calls for determined expenditure management,” the Board has said. Last financial year, Railways had budgeted around Rs 1,12,649 crore whereas it actually spent Rs 1,08,970 crore— a saving of Rs 3,679 crore, or just about 3 per cent. A set of earlier instructions from the ministry had directed all zones to adopt massive austerity measures to try and save around Rs 5,000 crore. 

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Tuesday, 23 June 2015

20:41

NSSO Conducted Survey for spending patterns of working class

NSSO Conducted Survey for spending patterns of working class

In a bid to understand the spending patterns and living conditions of working class, the Centre has decided to conduct a survey of workers’ family income and expenditure.

The survey, which will be conducted by the National Sample Survey Organisation, a Government of India body, will be used to finalise consumer price index (CPI) numbers for the working class. The CPI is the base for deciding dearness allowances (DA) of the working class.

“The Working Class Family Income and Exemption Survey-2015 will cover workers engaged in seven organised sectors of employment-registered factories, mines, plantations, ports & docks, public motor transport undertakings, electricity generating and distributing establishments, and railways,” an official from NSSO told Deccan Herald.

The survey will be conducted in 88 centres spreading across 28 states and union territories including Delhi, Karnataka, Andhra Pradesh and Uttar Pradesh. The survey will be conducted in eight places in Karnataka — Bengaluru, Belagavi, Chikkamagaluru, Davangere-Harihar, Hubballi-Dharwad, Kodagu, Mysuru and Mangaluru.

With the last such survey conducted around 15 years back in 1999-2000, the fresh survey required following a lot of changes in spending patters and lifestyles of workers in the past one-and-half decade, said the official.

The results of the survey will be utilisd for the purpose of revising the consumer price index numbers compiled by the Labour Bureau, said the official, adding that it will also show the light of living conditions of the working class. The surveyor will ask questions to a working class family about its living conditions, including spending on food, clothes, entertainment, health and education.  

Source: DeccanHerald 
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