Ending a practice that began in 1924, there will be no separate railway budget from next year onwards, as the finance ministry agrees to a proposal asking to merge the transporter's annual exercise with the general budget.
Government sources said the finance ministry has constituted a five-member committee of officers to work out the modalities for the exercise, which will end the annual budget speech, often followed closely for project announcements by the railway minister. Sources said the finance ministry has constituted a five-member committee of officers to work out the modalities for the exercise, which will end the annual budget speech. The move came after a two-member committee comprising Niti Aayog member Bibek Debroy and Kishore Desai recommended the exercise can be scrapped. Railway Minister Suresh Prabhu had told the Rajya Sabha that he has asked Finance Minister Arun Jaitley to merge the railway budget with general budget in long-term interest of national transporter as well as the country's economy.
Once merged, railways will be like other government department, receiving budgetary support but under the finance ministry's oversight as far as spending and earnings are concerned. Once the overall funds are allocated, railways will then segregate them for various purposes with sources indicating that the model will be similar to the one for the postal department.
