Railway budget to be merged with Union budget from 2017

There will be no separate rail budgetfrom the next financial year. According to railways, the Finance Ministry has now constituted a five-me

CA Deepak Gupta

Sep 22, 2016

Last update on Sep 22, 2016

There will be no separate rail budgetfrom the next financial year. According to railways, the Finance Ministry has now constituted a five-member committee, comprising senior officials of the Ministry and the national transporter, to work out the modalities of the merger and submit a report.

I had written to Finance Minister Arun Jaitley for merger of the Rail budget with General budget. This will be in the Railways' interest and also in the nations interest. We are working out the modalities, Mr. Prabhu toldPTI. [caption id="attachment_5716" align="aligncenter" width="800"]

Railway budget to be merged with Union budget from 2017[/caption]

If the merger happens, the Railways will get rid of the annual dividend they have to pay for gross budgetary support from the government every year.

According to a senior Railway official, the move to discard Rail budget is part of the Modi governments reform agenda.

With the merger, the issue of raising passenger fares, an unpopular decision, will be the Finance Ministers call.

Mr. Prabhu told the Rajya Sabha on August 9 that he had asked the Finance Minister to merge the Railway budget with General budget in the long term interest of national transporter as well as the countrys economy.

To facilitate this, the budget session of Parliament will be called sometime before January 25, a month ahead of the current practice.

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