Rail Budget 2016: Better journey for same price promised

The rail ministry cuts growth target for the next financial year

Union Railway Minister Suresh Prabhu on Thursday left passenger and freight fares unchanged because of tough competition from low-cost airlines and ahead of assembly elections in five states.

While many had expected the railway minister would increase passenger fares by around 10 per cent to offset the impact of the Seventh Pay Commission recommendations and meet the operational requirements, Prabhu did not put any additional burden on the 23 million passengers commuting on trains daily.
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The ministry also cut its growth target for the next financial year. "Passenger earnings growth has been pegged at 12.4 per cent and earnings target has accordingly been budgeted at Rs 51,012 crore. However, the actual growth target for 2015-16 was 18.9 per cent since passenger earnings in 2014-15 fell short of the RE (Revised Estimates) target," Prabhu said in his Budget speech.

"This has been scaled down, keeping in view the persistent negative growth trend since 2013-14 both in the suburban and non-suburban, non-passenger reservation system segment of travel," he said.