CAG Pulls Up Railways Over Rising Operating Costs

CAG Pulls Up Railways Over Rising Operating Costs

The Comptroller and Auditor General (CAG) has lambasted the Indian Railways in its latest report tabled in the Parliament on Tuesday over deteriorating operational costs in successive years.

The report claimed that the operating costs actually would have reached 99.54% against the reported 96.5%, if the actual amount of Rs 400.25 billion towards pension payments had been incorporated in its accounts instead of Rs 350 billion.

Operating ratio represents Railways spending over its expenditure to gain every Rs 100 and is an indicator of its efficiency in operations.

Noting that the operating costs has reached its worst since 2001 at 96.50% as compared to 98.34% in 2000-01, the CAG report criticised Railways for not fully recovering the cost of passenger services in case of AC 1st Class and AC 2-Tier and said the Ministry of Railways should also look into the various innovative ways for revenue generation and closely monitor the expenditure.

The report said had the additional expenditure on pension payments of Zonal Railways been appropriated, the gross working expenditure of Railways would have increased by Rs 50.25 billion to Rs 1.64 trillion leading to an operating ratio of 99.54%.

The report also noted that the total Capital grew from Rs 1,83,488 crore as on March 31, 2013 to Rs 3,12,635 crore as on March 31, 2017, total traffic handled declined from 7,27,610 million net tonne kilometres to 7,01,813 million net tonne kilometres respectively. Read More

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