Railway Budget 2021-22 - Revenue

 

2021-22 Railway Revenue Budget - Financials

SN	Receipts	Amount (Rs. in Crores)	Percentage		SN	Expenditure	Amount (Rs. in Crores)	Percentage
1	Coaching Earnings	67200	31 %		1	Ordinary Working Expenses	154399	74 %
2	Goods Earnings	137810	63 %		2	Appropriation to DRF	800	-
3	Sundry Earnings	12000	6 %		3	Appropriation to Pension Fund	53300	26 %
4	Gross Earnings (1+2+3)	217010	100 %		4	Gross Working Expenses (1+2+3)	208499	100 %
5	Suspense	100			5	Suspense	(-)  149
6	Gross Receipts (4+5)	217110			6	Gross Expenditure (4+5)	208300
7	Misc Receipts	350			7	Misc. Expenditure	2400
8	Total Receipts (6+7)	217460			8	Total Expenditure	210700

 

Net Revenue = Total Receipts - Total Expenditure

Net Revenue = 217460-210899

Net Revenue = 6561

Rs. 6561 Crores Net Revenue is appropriated to

1.       Development Fund - Rs. 1561 Crores

2.       RRSK - Rashtriya Rail Sanraksha Kosh - Rs. 5000 Crores

Nil appropriations to All other Funds like Capital Fund , RSF - Railway Safety Fund, Debt Service Fund.  

 

 

 

 

 

Railway Budget 2021-22 - Highlights

 Highlights of Railways Budget 2021-22

 

• Single Demand Number - 84 ( 83 for 2020-21)

 

• Capex - 2,15,058 Crores

 

• Budgetary Support from Ministry of Finance -110055 Crores

 

• 100 % Electrification  - by December, 2023

 

• BG Route KMs - 72 % Electrification by December, 2021

 

• DFC - Dedicated Freight Corridors - Commissioned by June, 2022

 

• The Sonnagar-Gomoh Section (263.7 km) of Eastern DFC  -taken up in PPP mode in 2021-22

 

• Proposed DFCs

 

1. East Coast corridor from Kharagpur to Vijayawada

2. East-West Corridor from Bhusaval to Kharagpur to Dankuni

3. North-South corridor from Itarsi to Vijayawada

 

• Vista Dome LHB coaches on Tourist routes

 

•  ATPS - Automatic Train Protection System (indigenously developed one) - introduced  in Important routes to eliminate Train Collision. 

****

MIS CLASSIFICATION OR ANNEXURE "J"

MIS CLASSIFICATION  OR ANNEXURE  “J”

1990,1993,1994 (with Books)                                                          5 Marks  - short notes question    

       Ü  During the course of accountal in books, an expenditure or income wrongly appeared in any other Head of Account instead of Proper Head of account, the mistake is known as MIS CLASSIFICATION.

       Ü  During the course of financial and other reviews, it is checked that whether there is any booking misclassified and if found the same is regulated in the same year through Journal entry.

       Ü  Examples are:

§  Booking in HBA instead of Motor Car advance.

§  Booking in Coaching Earnings instead of Goods Earnings.

§  Booking in One Demand instead of another Demand.

§  Booking in Revenue Demand instead of Plan heads or vice –versa.

        Ü  A statement showing items of misclassification and other important mistakes either detected by Statutory Audit or by Accounts should be prepared in ANNEXURE – J (Statement of important misclassifications and Other important mistakes detected)

        Ü  Pro forma of Annexure J is as follows.

Name of Railway               Grant affected   Brief description of Mistake   Amt.(Rs.)             

1.

2.

3.

Important change in Annexure J

(after merger of Railway Budget with General Budget from 2017-18 onwards)

1. Annexure J  - Big Relief to Indian Railways - Statement of Misclassification is now limited to Misclassification from Revenue to Capital or vice versa and Voted to charged or vice versa)  - Included in Appropriation Accounts and goes to Parliament through PAC

2. Misclassification from One SMH to another SMH on Revenue segment only figured under Statement of Other Mistakes (Not Statement of Misclassification)  - Not appeared in Appropriation Accounts.  To be settled at Zonal Railway level only.

Type	Examples	Dealt at
Misclassifications	Voted to Charged or vice versa Capital to Revenue or vice versa	Railway Board.  Unresolved will become part of Audit Report
Other Mistakes	One SMH to another SMH	Zonal Railway only (Need not send to Railway Board)

 

UN ECONOMIC BRANCH LINES - An important question for IIIA examination - repeatedly asked

UNECONOMIC BRANCH LINES

1987,1988,1991 (with Books) & 1990,1992 (without Books)                       5 Marks  - short notes question

                  

• Definition: All Narrow gauge lines and such lines that join the Main line net work at one end only are termed as branch lines ( based on the recommendation of Uneconomic branch lines committee, 1969)

•  The Branch lines which do not earn profits are termed as Uneconomic Branch Lines  or un remunerative Branch Lines  .

• Assessment on territorial basis of the financial results of the branch lines indicates that some of them suffered a loss. 

• Several high-level committees have unanimously recommended that all such uneconomic branch lines, where alternative modes of transport exist or can be developed, should be closed down so as to reduce, to the extent possible, the losses which accrue to the Railways, year after year. There is, however, reluctance on the part of state governments to close down such lines. 

• The Railway Reforms Committee in Part XI of their report on ‘Economies’ (October 1983) had recommended that (i) 40 such lines where adequate alternative road infrastructure are available & (ii) 17 such lines in Gujarat where alternative road infrastructure could be developed, should be closed down and in cases where the state governments do not agree for closure for their own reasons they should share the losses with the Railways on 50:50basis. Instructions have been issued for closure/dismantling of 21 uneconomic branch lines (15 out of 40 & 4 out of 17 referred to above and 2 other uneconomic branch lines). 

• only 15 lines have been closed permanently by the Railways.

•  In order to enable the state governments for closure of the remaining 36 lines, the Railways are ready to offer financial assistance as under:

1. On one time basis, the Railways may subsidize the procurement of additional buses required due to

closure of rail sections subject to the State Government agreeing for their permanent closure. 

2. Again, on one time basis, Railways may offer financial assistance for

development/improvement of road infrastructure which will be a prerequisite for withdrawal of train services.

3. Offer of Railway embankments in respect of 13 lines in Gujarat for conversion into all weather metalled roads.

2018-19 year data on uneconomic branch lines  

• Total lines – 99 (BG -51, MG -19 and NG-18)

• Total Investment on these lines-4000 Crores

• Total loss during that year – 2342 Crores. (excluding dividend on their account)

• In spite of showing losses, these branch lines worked due to public pressure and opposition of the State Government to close such lines.

• The running of above lines as part of social service obligation on Indian Government Railways

• Financial results of these lines will be worked out on marginal cost principle.

• The Annual Statement  regarding the financial results of the “uneconomic branch lines  is submitted to the Railway Board in prescribed form.

• This statement should also indicate the steps taken to improve the performances and reduce the working expenses.

###

                                                                        ###

Compendium 2020 on Pension related orders

 

Click here for Compendium on Pension related Orders - 2020

8th Zoom Meeting

 www.appendix3.com is inviting you to a scheduled 8th Zoom meeting.

Topic: Railway Budget 2021-22 - An analysis

Time: Feb 7, 2021 (Sunday) 18:00 hrs

Join Zoom Meeting

Click here 10 minutes before Meeting begins

Meeting ID: 833 5703 0030

Passcode: 290387

Covered So far

Meeting	Date	Topic
1	20.12.2020	Introduction
2	27.12.2020	Budget
3	03.01.2021	Auditing
4	10.01.2021	Parliamentary Control over Railway Finances
5	17.01.2021	Appropriation Accounts
6	24.01.2021	What is Demand ? What is Grant ? What is Major Head ? What is Sub Major Head ?
7	31.01.2021	Works Program & IRPSM