| "Control over expenditure and preventing revenue leakage will be a thrust area this year," Prasad had said in his maiden Budget speech for 2004-05, emphasising that utmost economy would be maintained in general expenditure. |
| The good news, however, is excellent performance on the revenue side. The freight and passenger earnings are expected to be nearly 4 per cent above the target of Rs 44,902 crore, according to railway ministry officials. As a result, the expected net income would be about Rs 1,600 crore or 35 per cent more than the Budget estimate of Rs 4,478 crore. |
| Officials said the increase in diesel prices, which increased the railway's input costs by Rs 400 crore, and the Rs 700 crore salary outgo due to 50 per cent merger of the dearness allowance (DA) with the basic salary, was responsible for higher spending. |
| They contend that had it not been for the cost-saving measures effected by the railways, the expenditure would have been much more. |
| In fact, the burden of Rs 160 crore due to initial increase in the diesel prices and the additional wage bill due to the DA merger was borne completely by the railways. The rise in input costs has kept Prasad from fulfilling his promise of curbing expenditure, in case of implementation of various schemes announced during the last budget, the minister has an average track record. |
| Several schemes like the introduction of electronic payment gateways, the second phase of freight operating and information system, enabling passengers to make reservations from mobiles, and SMS alerts for delays in arrival of selected trains, have been successful. |
| The minister, however, failed to live up to his promise on the number of new trains. Of the 34 new trains announced only 20 were introduced. |
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