Tuesday, April 28, 2015

Panel Packs a Punch on Railway Finances

NEW DELHI: Holding the Railways’ sloppy financial management as the reason for defective budgeting over the years, the Public Accounts Committee (PAC) of Parliament said the excess expenditure above the original grants had become a recurring phenomenon.

The PAC headed by Congress MP K V Thomas said in its report tabled in Parliament that the Railways was unable to meet its operational cost of passenger and other services during 2011-12.“The excess expenditure in 2010-11 reached a huge sum of Rs 3,056 crore as it rose from Rs 1,922 crore in 2009-10 after being calculated as Rs 532 crore during 2008-09. Such expenditure as is incurred in excess of sanctioned estimates is treated as unsanctioned expenditure,” it said.
The PAC also noted that the funds allocated were not being optimally utilised, thus defeating the objective behind the exercise. It was also learnt that despite the availability of the latest IT tools for collecting and analysing data, the Railways was not able to properly assess its Budgetary requirements. The PSU giant’s financial position too did not improve despite the excess expenditure of more than Rs 1,000 crore as was evident from the negligible negative balances with which Railways depreciation reserve fund, pension fund, development fund and capital fund closed in 2011-12, it said, adding that instances of misclassification of expenditure occurred regularly in the accounting system.
Railways should review its internal control mechanisms and strengthen them if need be for ensuring compliance with the rules and regulations.  which have been laid down for effective budgeting and proper fiscal reporting.
Rly Revenue Loss Due to Theft
New Delhi: Railways suffered nearly Rs 33 lakh revenue loss due to theft of scrap during 2012-14, Minister of State for Railways Manoj Sinha informed Parliament. He listed out a series of measures taken by the ministry to contain the problem. The highest amount of revenue loss of Rs 23 lakh was suffered in 2013 followed by a loss of Rs 7 lakh suffered in 2014. 


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