Union And Railway Budgets

The Indian Railways are the backbone of the Indian transportation system, trying to connect villages, cities, and towns across the world in a cost-effective and efficient manner. Every year, the Union Budget is an eagerly anticipated event, with all eyes on the railway proposals in the most recent budget. These would set the tone for future development projects aimed at improving passenger safety and comfort. If you have various questions about the recent budget, we will discuss the same in the following things.

Union Budget Of India

The Union Budget of India in Article 112 is, also referred to as the Annual Financial Statement, is the annual budget of the Republic of India. The government introduces it on the first day of every February to be implemented before the start of the new fiscal year, that is in April. Until 2016, it was presented in Parliament by the Minister Of finance on the last working day after February. The budget segment of the finance ministry’s department of economic affairs is the nodal body in charge of producing the budget. Before it can take effect on 1st April, it must be presented in the form of a Finance bill and an Appropriation bill, both of which must be passed by the Lok Sabha.

A ‘Vote on Account’ is not like an interim budget. A ‘Vote on Account’ addresses only the government’s spending side of the budget. An operational budget is a full set of accounts that includes both receipts and expenditures. Like a full budget, an interim budget provides a complete financial statement. While the law does not preclude the government from enacting tax changes in an election year, previous governments have avoided enacting significant changes in tax laws throughout an interim budget.

Railway Proposals In Union Budget

The following are the key points of the recent Union Budget proposals for Indian Railways:

• The Indian Railways have been allocated Rs.1.1 lakh crore, of which Rs.1.07 lakh crore will be spent on capital expenditure.
• The Indian Railways submitted a National Rail Plan to the authorities as a framework that provides that the railways meet the country’s evolving needs and changing global standards.
• The Railways will launch other dedicated corridor projects, including the East-West Corridor from Bhusawal to Kharagpur, which is further to Dankuni, the East-Coast Corridor that is from Kharagpur till Vijayawada, as well as the North-South Corridor, which is again from Itarsi to Vijayawada.
• The electrification of broad gauge routes will be completed by December 2023.
• Hofmann Busch coaches would be introduced on tourist routes to improve aesthetic appeal and comfort.
• The Kochi Metro Railway Phase 2 work will start soon at the expense of INR 1,957.05 crores for just a total length of 11.5 kilometres.
• The subway train network in cities such as Chennai, Nagpur, Kochi, and Nashik will continue to be developed and invested in.
• The Bangalore Central Railway network will be built, which will aid in resolving traffic issues in the IT sector.

Expectations from Railways for Union Budget

1. Safety: A rise in the number of railway accidents in India has undoubtedly raised concerns about the need for better and more modern rail infrastructure. The total number of train accidents in the prior year increased to an alarming 48. As a result of these factors, the railway sector is set to receive the most attention of any sector. The expectation is primarily in the domains of increased precautionary measures, upgraded infrastructure at train stations as well as inside trains, enhanced facilities available by top management serving inside trains, and new and enhanced systems to indicate warning in the event of an emergency. To better track, delay, and accidents caused by fog, the Indian Railways already has established a GPS-based navigation system.
2. Comfort: Despite the installation of bio-toilets and upgraded infrastructure, the trains’ condition remains poor and highly contaminated. In an age where more people prefer to fly, a hygienic and dirt-free rail journey could go a long way toward ensuring that people in the country continue to use railways.
3. Cost: As the 2020 elections approach, the Modi government may consider lowering the existing reservation fees, but a significant concern is that the decrease in revenue generation may successfully hamper the Railroads in the future.

Conclusion

The Union Budget proposes a career-high budgetary allocation of 1.37 lakh crores for Railways for the upcoming fiscal year, with a capital spending outlay of more than 2.45 lakh crore. The nationwide transporter plans to use the funds, which are 14 per cent higher than last year, to finish projects and improve passenger accommodations and safety.