FM backs outsourcing of railways’ non-core functions

Finance Minister A ru nJ a it le yon Tuesday said rail commute rs must pay for the service they receive even as he made a strong case for outsourcing of non-core functions such as hospitality. He said unless the railways strengthen sits performance and internal management system, it will lose out to competition from other sectors.

Weeks before he presents India’s first combined general and railway budget, Finance Minister Arun Jaitley (pictured) on Tuesday made a strong case for outsourcing of non-core functions like hospitality services of Indian Railways and pressed for a transparent accounting system. He said unless the railways strengthens its performance and internal management system, they will lose out to competition from other sectors.

As Railways plans to shift towards accrual system of accounting from cash system, Jaitley said the accounting reform will better reflect performance. “Your accounting systems really must reveal more instead of concealing the reality. What is the kind of investment in infrastructure that is coming in, what is the kind of investment in railway safety, what is the kind of outcome of outlay that you have planned, I think those accounts must really reflect the reality,” he said. The government had in September scrapped the 92-year old practice of presenting a separate railway Budget and decided to present a combined general and railway Budget for FY18.

Speaking at a conference on Accounting Reforms in Railways organised by CII, Jaitley said year after year, governments have indulged in populism and people listened to Rail Budget only to hear the number of new trains being announced.

“I’m glad that over the last two years, railways has resisted the temptation of going off-track and falling back to the same level of search of populism over performance and is concentrating on improving its quality,”