Budget 2022: Railways' Operating Ratio Pegged At 96.98% Despite Record Capex
The finance minister provided the highest-ever capital expenditure outlay for the railways in Budget 2022.
Finance Minister Nirmala Sitharaman in her budget for 2022-23 provided the highest-ever capital expenditure outlay for Indian Railways in line with the overall theme of investing in infrastructure instead of providing a short-term consumption boost.
Sitharaman, in her speech on Feb. 1, announced 400 new Vande Bharat trains and 100 PM Gati Shakti cargo terminals in the coming three years.
The Finance Minister also announced that 2,000-kilometre rail network will be brought under Kavach, an indigenous technology-based anti-collision device network that aims to help the railways minimise accidents.
Operating Ratio
According to the budget documents, Indian Railways' operating ratio for the financial year 2022-23 has been pegged at 96.98% compared with 98.93% in the ongoing fiscal.
Operating ratio is the amount the railways needs to spend for every Rs 100 earned.
Capex
The budget provided a total capital expenditure outlay of Rs 2,45,800 crore for 2022-23. This includes Rs 1,37,100 crore from general revenues, Rs 200 crore from Nirbhaya Fund and Rs 1,08,500 crore from internal and extra-budgetary resources.
Revenue, Debt Servicing
The net revenue expenditure of the railways has been pegged at Rs 2,40,000 crore for FY23 against Rs 2,02,000-crore revised estimate of FY22.
Reimbursement of losses on operation of strategic lines has been kept at Rs 2,447.1 crore as against Rs 2,358.1 crore in the revised estimates of FY22.
Rs 820 crore earmarked towards debt servicing of market borrowings for national projects.
Passenger And Goods Trains
Revenue from passenger trains has been pegged at Rs 58,500 crore in the financial year 2022-23. Earnings in this segment have suffered in the recent past due to multiple waves of Covid-19.
It slipped to Rs 15,248 crore in 2020-21. Revised estimates for FY22 were Rs 44,375 crore. That compares with Rs 50,669 crore in FY20.
Revenue from goods trains remained relatively resilient. It has been pegged at Rs 1,57,000 crore for FY23 compared with a revised estimate of Rs 1,42,575 crore for FY22. It had slipped to Rs 1,13,015 crore in FY21.