Rly min projects 37% increase in annual Plan

The railway ministry has projected a 37 per cent increase in its annual plan for 2007-08 to around Rs 32,225 crore with lesser borrowings and much higher internal revenue generation. The annual Plan size for the current financial year 2006-07 is Rs 23,475 crore.

Significantly, the railway ministry has projected a nearly 60 per cent increase in internal revenue generation for the next financial year (2007-08) at around Rs 17,100 crore, as against the existing financial year estimate of Rs 10,794 crore.

Total internal and extra budgetary resources (IEBR) for 2007-08 are projected at just under Rs 21,600 crore, a 35 per cent increase over the IEBR of Rs 15,964 crore for the current financial year. 
 

RAILWAY BUDGET ESTIMATES Budget estimates for year 2006-07
Gross traffic receipts	Rs 59,978 crore
Freight loading target	726 million tonnes
Freight output	479 billion tonnes km
Revenues in freight segment	Rs 40,320 crore
Revenues in passenger segment	Rs 16,800 crore
Revenues in other coaching segment	Rs 1,400 crore
Revenues in other earning segment	Rs 1,308 crore

Market borrowing is projected at around Rs 4,500 crore in 2007-08, nearly 15 per cent lower than the market borrowing of Rs 5,170 crore estimated for the current fiscal.

The capital support for the 2007-08 annual plan is estimated at Rs 8,674 crore, while the contribution to the special railway safety fund is pegged at Rs 1,176 crore and Rs 790 crore for the safety fund (diesel cess).

The gross budgetary support (GBS) sought by the ministry for 2007-08 is estimated at Rs 10,640 crore, which translates into a 40 per cent increase over the GBS of Rs 7,511 crore allocated for the current financial year.

The increase in internal revenue generation is due to growth in freight and passenger traffic. In fact, around Rs 620 crore is expected to be collected during the current financial year on account of the Re 1 per ticket safety surcharge levied on passenger tickets.

For the current fiscal, the railway ministry had estimated passenger earnings at Rs 16,800 crore, assuming a 10 per cent growth in the originating number of passengers. These figures indicate the ministry's increasing reliance on internal revenue generation, rather than on market borrowing.

The railways intend to use the additional funds for capacity augmentation and completion of ongoing works.

In fact, the ministry intends to spend around Rs 2,700 crore for "national projects" "" rail networks being developed in Jammu and Kashmir and the North East region.

For 2006-07, the ministry has estimated the gross traffic receipts of the Indian railways at Rs 59,978 crore, which is Rs 5278 crore higher than the revised estimate of 2005-06.