Big gain for Railways from joint budget

A joint committee set up to finalise the modalities for the merger of Rail Budget with the General Budget has submitted its report to the Finance Ministry recommending various changes including waiving off of payment of dividend by railways though the practice of getting gross budgetary support (GBS) from the exchequer will continue. 

Railways pays about Rs 10,000 crore as dividend a year after getting about Rs 40,000 crore. The recommendations will be placed before the Cabinet which has to decide on the subject, the sources said, adding till then, nothing is final.

The report on merger of Rail Budget and General Budget, which was to be submitted by August 31, was delayed due to some “unavoidable reasons” and it was finally submitted to the Finance Ministry on September 8, sources in the railways said.