www.whatisindia.com

What Is India News Service
Tuesday, February 27, 2007



 

 

 

   Populist Railways Budget

  Railways Minister Lalu Prasad Yadav presented a populist budget that cut prices across the board with the claim that increased traffic will bring in more revenue but critics have castigated him on adopting policies that will ruin Railways.
     
 

Railways Minister Lalu Prasad Yadav presented a populist budget that cut prices across the board with the claim that increased traffic will bring in more revenue but critics have castigated him on adopting policies that will ruin Railways. Prices were cut across the board both for passengers and freight but no allocation has been made for upgrading tracks, getting new coaches and trains, rebuild facilities, upkeep infrastructure, and accommodate ever-fattening paychecks.

The Railways is already running to capacity in seats and it is unclear how reducing prices will increase revenue. Losing margins against rising fuel costs and record high inflation, it is unclear how the submitted budget will help the Railways survive and thrive in the future. However, as with many other policies, businesses have endorsed the budget looking mostly at their bottom lines without regard to the health of the Railways. For instance, the Railways is already losing its profitable freight business to truckers and freight targets have been raised marginally at eight per cent to 785 metric tons for 2007-08 and the Rail Bhavan has already acknowledged that the Railways is running to capacity and cannot be stretched any more.

Given these facts, the Railways budget 2007 is not something to cheer.

 

Hot Topics

Indian Economic Reforms
India-Sino Trade Slows Down
Japan Keen to Expand Ties
GDP Growth at 9%, RBI Hikes Rate
Defense Innovation
Banking Reforms
Sri Lankan Tamil Struggle
Indo-EU Relations
Air Force Expansion Plans

 

Other Stories

Autoline acquires 51% in Stokota
China to Buy India Coffee
Congress Party Loses State Elections
Granules picks Ridgeback as strategic investor
Guj Ambuja sells 11% in ACIL to Holcim
HOV Services to buy US BPO unit for Rs 600 cr
Indo-EU Talks Focus on Labor, Ecology
Japan's New Spy Satellite Network
Mahindra-Renault-Nissan car facility near Chennai
Marine products export to EU up 34% in value
MiG-21s to Stay Longer
NTPC bids for Globeleq's Egypt power plant
NTPC eyes Rs900cr from US pension funds
PowerGrid to Raise Rs. 3800 Cr Debt
Suicide Attempt on Cheney
US, Italian, German envoys hurt in LTTE attack
   
 
       

 

 

 

2007 Copyright What Is India Publishers (P) Ltd. All Rights Reserved.