Rail Budget 2011 to be announced in few hours

With merely a few hours left for the rail budget to come out, here we discuss the state of Indian railways over the past year. A few weeks ago, the news spread across that while the expenditure of the Indian railways has surmounted by Rs 1,330 crore, the earnings, on the contrary have dipped considerably by Rs 1,142 crore leaving the deficit to be Rs 2,500 crore.

Satish Vaish, the Former Chairman of the Railway Board does not consider this to be a serious issue since the deficit depends upon various factors which have nothing to do with the railways. He believes, “The important thing to watch is that the railway does not throttle the economy. The factors, which have come in, like increase in diesel price, inflation, disturbances, all these things will continue, I don’t think we can change them. We have to earn more and we have to do some big things.”

However, everyone does not seem to agree with the Vaish’s viewpoint. Some of the experts believe that what is scarier is the long term state of affairs, which is bound to garrote the economy of the nation.

It is believed that if the economy continues to grow at the same pace, the pressure of demand on transport is likely to be 1.25 times more. The gross domestic product (GDP) of the nation is hooked at 9% which means that railway should have a growing rate of 12-13%, which they do not have. Apart from this, the railways do not seem to enlarge the transport capacity so far. In such a scenario, it would be interesting to watch what amendments are being made by the Indian Railways this time.