For every ₹100 earned, Rlys spent ₹98.44 in 2017-18: CAG
NEW DELHI: The Indian Railways recorded an operating ratio of 98.44% in 2017-18 which is the worst in the past 10 years, the Comptroller and Auditor General (CAG) has said in a report tabled in Parliament on Monday.
A measure of expenditure against revenue, the operating ratio shows how efficiently the railway is operating and how healthy its finances are. An operating of 98.44% means that the Railways spent ~98.44 to earn ~100.
The national auditor in its report on the railways’ finances, said that the railways would have ended up with a negative balance of ~5,676.29 crore instead of a surplus of ~1,665.61 crore but for the advance received from NTPC and IRCON. “The Indian Railways’ operating ratio at 98.44 per cent in 2017-18 was the worst in the last 10 years,” the national auditor, Comptroller and Auditor Genthe
THE RAILWAYS HAS ALSO BEEN UNABLE TO MEET ITS OPERATIONAL COST OF PASSENGER SERVICES AND OTHER COACHING SERVICES
(CAG), said in a report tabled in Parliament on Monday.
“Exclusion of this advance would otherwise have increased the operating ratio to 102.66%,”
auditor said.
The Railways has also been unable to meet its operational cost of passenger services and other coaching services. Almost 95% of the profit from freight traffic was utilised to compensate for the loss on operation of passenger and other coaching services, it said. The audit analysis of the finance accounts of Railways revealed a declining trend of revenue surplus and the share of internal resources in capital expenditure. The net revenue surplus decreased by 66.10% from ~4,913.00 crore in 2016-17 to ~1,665.61 crore in 2017-18. The share of internal resources in total capital expenditure also decreased to 3.01% in 2017-18. “This had resulted in greater dependence on Gross Budgetary Support and Extra Budgetary Resources,” it said.
The CAG said railways need to take steps to augment their internal revenues, so that dependence on gross and extra budgetary resources is contained.