Not enough funds: S Murali

RAILWAY BUDGET 2004-05/ COMMENT

S Murali
Former Financial Commissioner, Railways

Railway Minister Lalu Prasad has not spent much time on the Budget. I think, there are a host of burning problems that need to be addressed. Passenger fares as well as freight charges have not been increased.

There is not enough money to finance the basic activities. There are 1.5 million employees in the railways and 1.1 million pensioners. The Pension Bill has increased 2.5 times over the last two years.

Likewise, there are other issues like upgradation and maintenance of railway tracks, coaches and other infrastructure. I don't know where the minister is going to get the money to finance such activities.

The railways have capital to finance their daily expenditure only. However, when one thinks about the long-term prospects, it will be really tough to finance these activities.

The taxpayer cannot keep on subsidising the railways for ever. The railways have to generate funds on their own.

I don't see any logic in setting up a wheel-axle manufacturing plant in Chhapra. We have such facilities in Durgapur and a few other places. There is no need of setting up another one.

When everybody is talking about reducing staff, Prasad is in favour of creating another 20,000 jobs in the railways. Such measures can create problems of accusations of corruption and partiality.

For instance, staff for the Railway Protection Force were previously recruited directly. The process was full of corruption. That is why, the then Railway Minister Nitish Kumar had changed the appointment procedure by shifting the recruitment process to the hands of Railway Recruitment Boards.

Prasad has again initiated the direct recruitment process. I don't find any reason for such a measure. Every railway minister must see that the rail passenger gets utmost comfort while travelling. The basic thrust should be on providing a hassle free journey to the passenger.

This depends on three things -- timeliness, cleanliness and safety. The government must look at these issues. Only "Khullar" and "Khadi" will not do. I remember a lady saying on the television how she could not use the coach toilet because of unauthorised passengers.

Everybody knows the bad state of our railway coaches. Prasad should have taken more pro-active steps to tackle these burgeoning problems. The minister has introduced four new trains for Bihar. I don't know what good it will do. Trains in Bihar will always be packed with a large number of migrant workers.

All I can say is that Prasad has tried his best to present a populist Budget. But where are issues such as the corporatisation of the railways?

There has been no thrust on the Rakesh Mohan committee report on the railways. I would like to know, for instance, what answer will the government give to Asian Development Bank officials, with whom they are negotiating a major loan for financing the Rail Vikas Nigam Limited.