Populist budget is on expected lines
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It was a populist budget that was on expected lines. No hike in passenger fares and no increase in freight rates despite the poor financial condition of the Railways, thanks in particular to the burden of the Sixth Pay Commission. Passenger fares have not been increased now for the eighth year running.
What also necessitated its populism was the fact that railway minister Mamata Banerjee’s home state of West Bengal will be holding Assembly polls barely two or three months from now. So it was necessary for the railway minister to give goodies to Bengal yet again despite the Railways not really being in the pink of financial health.
Other poll-bound states like Assam, Tamil Nadu and Kerala too have benefited, though not in the same measure as Bengal.
When asked about the Left parties’ charge about her Budget being populist, Ms Banerjee retort was: “They are opportunist people. When they know they cannot fight, they make all such allegations. We have given projects to the entire country, including Jammu and Kashmir, Manipur and Assam. Bengal is not outside India.”
Ms Banerjee even maintained that the Railways’ financial position was “safe and sound” despite the burden of the Pay Commission. However, in just one indication of the populist nature of her Budget, the railway minister announced the launch of the Pradhan Mantri Rail Vikas Yojna for “socially desirable projects” in anticipation that the Railways will get the funding for it in the yet-to-be-launched 12th Five-Year Plan.
A combative Ms Banerjee even said shortly after she had presented the Budget in the Lok Sabha, “Till yesterday, everyone was shouting that I will not be able to pay the dividend. Today, you see the magic. Our financial performance is strong. W are suffering only on account of the Sixth Pay Commission. Remember, almost half the government employees belong to the Railways.”
On a somewhat positive note for the Railways’ financial situation, the gross traffic receipts have been estimated as `1,06,239 crores which will exceed the `1 lakh crore mark for the first time. A provision of `6,735 crores has been made for payment of dividend while the excess for the new fiscal has been projected at `5,258 crores.
This Railway Budget has also proposed the highest ever Plan outlay of `57,630 crores, freight loading of 993 million and passenger growth of 6.4 per cent.
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