While there were no changes in passenger fare and freight charges, as expected in an Interim Budget, Finance Minister Piyush Goyal invested in the Railways sector with highest ever capital budget of Rs 1.58 lakh crore as opposed to last year’s budget of Rs 1.48 lakh crore.
 
The allocation for rolling stock like coaches and wagons and tracks has been raised by 64% from Rs 3,725 crore to Rs 6,115 crore.
 
Finance Minister Piyush Goyal, who is also the railway minister, said so far 2018-2019 has been the safest for the Indian Railways and all unmanned level crossings on the broad gauge network have been completely eliminated.
 

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“Capital support from the Budget for the Railways is proposed at Rs 64,587 crore in 2019-20.
 
In fact, the Railways’ overall capital expenditure programme is historic at Rs 1,58,658 crore. Vande Bharat Express, indigenously developed semi-high speed train at 180 km per hour speed., will give Indian passengers world class experience,” Goyal said in his Budget speech.
 
The Economic Survey had last year raised an alarm over the falling share of Railways in freight movement which comes on the back of falling operating ratio when trains are slowing down due to lack of investments and when goods like coal cannot be moved because of lack of wagons and dedicated freight corridors needed to for the same.
 
“The Finance Minister has once again proved that the government is recognising Railways as a priority sector and giving due importance to this sector.
 
We have always believed that a strong Railways is the backbone and precursor to a strong economy. Unfortunately Railways has not received its due importance in the past, but for last few years, we have seen that the government is doing everything possible to recover the sector from this situation.
 
We therefore complement the Finance and Railway Minister on the Interim Budget, which in spite of being an interim one, gives a lot of focus on the Railways,” said Umesh Chowdhary, Vice-Chairman and Managing Director of Titagarh Wagons
 
“Hike in allocation and total capital expenditure planned for Railways will help in upgradation of existing railway lines, expansion of electrification and improvement in other railway facilities,” said Vijay Agarwal, Executive Director of Equirus Capital.
 
 
“The Operating Ratio is expected to improve from 98.4% in 2017-18 to 96.2% in 2018-19 and further to 95% in 2019-20,” Goyal promised.
 
Operating Ratio measures the operational efficiency by comparing expenses as a proportion of revenue.
 
For every Rs 100 earned in April-July of 2018, it had spend Rs 111.51 giving it a record-high operating ratio of 111.51%.
 
However, what will remain the Railways’ major headache would be its revenue expenditure which includes an estimated salary payout of Rs 85,800 crore, about Rs 14,000 crore more than last year, according to officials.
 
It is important to note during Lalu parsed yadava during UPA 1 tenure 2004-2009 as railway minister he made railways operating in profits