Railway Sector Union Budget 2023 Expectations: Union Finance Minister Nirmala Sitharaman is going to present the Union Budget 2023 on 1 February 2023 in the Parliament. This will prove to be the last full budget of the Modi government. There is an atmosphere of enthusiasm and enthusiasm among the people of every sector regarding this budget. Along with this, everyone’s eye is on the budget of the railways. This budget will prove to be very special for everyone from the general public to those traveling by railways. In this, from the investor to the common man traveling in the train, everyone’s eyes are on this budget. Know what else is going to be special in this budget for the Railways.
no increase in rent
In view of the rising cost of living and high inflation in the country, there is little possibility of increasing the prices of passenger fares or freight in the Union Budget 2023-24 of Indian Railways. However, the officials believe that if the cost pressure for the transporter is running high.
Railway’s target will increase this year
Indian Railways is expected to slightly exceed the operational target in FY23. A big jump in passenger earnings is expected to help. This budget includes the talk of reducing the operating ratio as compared to 97 percent. According to these reports, the transporter is facing losses due to the cheap price of mall transportation from railways.
16 percent increased to 1.2 trillion
According to the latest data, freight earnings from railways have increased by 16 percent annually to reach Rs 1.2 trillion in April-December 2022. Which is about 73 percent of the budget target for the entire financial year. This represents a marginally lower increase than the budgeted rate of 17 per cent. The same officials are hopeful that the annual freight revenue target will be met. In the first 9 months of the same financial year, passenger earnings increased by 71 percent year-on-year to Rs 489.13 billion, while the growth required to meet the annual target has been 50 percent.
95 percent target this year
In the year 2023-24, the Railways is expected to achieve an operating ratio of about 95 percent. A ratio of 95 per cent indicates that Rs 95 is spent for every Rs 100 earned, the lower the ratio the higher the operating surplus.
Regarding the prospects of the next financial year from the Ministry of Railways, it is expected that the freight loading target may be at least 100 million tonnes more than the budget estimate of 1,475 million tonnes for the current financial year. The increase in tonnage would translate into additional earnings of about Rs 8,000 crore in 2023-24, which is Rs 1.65 trillion in the modest scenario against this year’s budget estimates. The revenue earnings from freight transportation are estimated to be around Rs 1.9 trillion for 2023-24. This is expected to accelerate the movement of bulk commodities like coal and steel.
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