Description On Railway Budget

Indian Railway budget once again gained a high position in this year’s union budget presented by finance minister Nirmala Sitharaman on February 1st 2022. It includes the expansion of the railway in every way possible from security to comfort.

Indian railway budget 2022

This year the union budget has designated Indian railway a total budget of ₹1.37 lakh crore with the capital expenditure fund of over  ₹ 2.45 crore for next financial year. In her speech, finance minister Nirmala Sitharaman mentioned that the Indian railway will manufacture 400 fuel-efficient Vande Bharat trains in the coming three years. 

In the presence of railway minister Ashwini Vaishnaw, she also mentioned “One station One product”, in order to help the local products gain a new level of popularity. Railway minister welcomed these announcements and assured the public that the railway will introduce more initiatives for small farmers and enterprises in future as well.

Some highlights about Indian railway budget 2022:-

1. The finance minister mentioned 100% electrification of broad gauge routes by the end of this financial year.
2. Automatic train protection system will be launched. 
3. One station One product will be launched.
4. KAWACH will be expanded more this year to assure more secure rail traveling.
5. The National Ropeway Development Programme will fall under PPP mode.
6. Extension of wifi facility.
7. Introduction of more vande mataram trains.

Financial year cause

Every year all  firms start their books on April 1st and close on March 31st. This term is called the financial year. Although an exact reason for financial year to  starts on april and ends in march is still remains unknown but many scholars came with some theory of :- 

• Following the british rules

India was ruled by the east india company for 150 years, who followed this rule of financial year and applied this in the Indian system. Even after independence some rules haven’t changed by the government. Thus, we are following the same rule.

• Hindu new year

The financial year which starts from April 1 coincides with the Hindu new year. Hence, this can be a reason why the government started the financial year from April 1st.

• Agricultural country

As an agricultural based country Indian income mostly depends on income from crops harvested in the February and march. In April the government can estimate the revenue made from agriculture. Hence it is one of the most valid reasons why the financial year starts from April. 

• Festivals 

The most joyful festivals like diwali and Christmas fall in November and December which can make closing books hard during this period. As well as most employees are on vacation during this period hence, the government chose march to end the books. 

Many countries like Canada, the United Kingdom, New Zealand, Hong Kong, and Japan also follow the same financial year rule (April to March).

The Consolidated Fund of India

The Indian government carries Three types of funds: consolidated fund of India, contingency fund of India and public accounts of India.

The Consolidated Fund of India includes all the revenue received by the government such as revenue by direct and indirect taxes, dividends and profits from public sectors. This fund also includes the revenue earned by the government services, disinvestment receipts, repayment of debts and loan difference between contingency and collided fund of India recovery. This fund. was constructed under article 266(1) of the constitution of India.The government cannot withdraw money from this fund without parliamentary approval.

Some other expenses under this category includes salaries and pensions of:

• The President of India. 
• The Speaker.
• The Deputy Speaker of the Lok Sabha.
• Chairman of the Rajya Sabha.
• Deputy chairman of the Rajya Sabha.
• Supreme Court judges.
• Supreme Court and High Court judges pensions.

Conclusion

Indian railways is updating itself in every level to serve the public most memorable travels. The consolidated fund of India plays a major role in the Indian economic system. This article helps you to understand these topics briefly.