Audit Reports
Railways
Report No. 11 of 2009 - Compliance Audit on Railways, Union Government (Railway)
Overview
The gross traffic receipts of Rs.79,861.85 crore registered a growth of 11.35 per cent and the working expenses of Rs.71,839.30 crore rose by 31.91 per cent over the year 2007-08. The net revenue surplus of Rs.4,456.78 crore after payment of dividend to General Revenues declined by 66.82 per cent over the previous year.Net effective rate of dividend after setting off the subsidy from the dividend paid during last five years (2004-09) ranged between 4.18 per cent (2008-09) and 5.37 per cent (2007-08).Annual rate of growth in passenger earnings declined from a peak of 15.21 per cent achieved in 2007-08 to 10.52 per cent in 2008-09.
Goods earnings of Rs.53,433.42 crore show an increase of 12.65 per cent over the previous year but it was much below the rate of growth of 17.90 per cent achieved in 2005-06. Annual rate of growth of loading declined to a low of 4.97 per cent in 2008-09 from a peak of 10.70 per cent achieved in 2005-06.15.79 per cent of the earnings from goods services in 2007-08 went to make up the losses in the operation of coaching services during the year. Only AC Sleeper, AC-3 Tier and AC Chair Car segment of passenger services were in profit in 2007-08.
Committed expenditure in 2008-09 comprising salary and wages including pension and gratuity, dividend payment to General Revenues and payment of lease charges on rolling stock constituted 55.86 per cent of the total revenue expenditure. Operating Ratio of Indian Railways declined to 90.46 per cent in 2008-09 from 75.94 per cent achieved in 2007-08. Plan expenditure of Rs.9,545.35 crore from the General Budget Support registered an increase of 36.95 per cent when compared to previous year. It was 34.44 per cent more than the budget estimates. Extra Budgetary support received from IRFC in the shape of financing the procurement of rolling stock increased from Rs.4,604.43 crore in 2007-08 to Rs.6,990.84 crore in 2008-09. No fund could be mobilized through Public Private Partnership Project's schemes where a budgetary projection of Rs.800 crore was made. Indian Railways could achieve only 28 per cent of the total XI Five Year Plan (2007-12) targets in the first two years (2007-09).Balances under the reserve funds of the Indian Railways declined from Rs.22,279 crore at the end of 2007-08 to Rs.15,655 crore at the end of 2008-09. Against the investments of Rs.6,366.32 crore made in various Public Sector Undertakings, Joint Ventures and Special Purpose Vehicles,Indian Railways, in 2008-09, received only Rs.268.46 crore as dividend.The net overall savings of Rs.11,318.46 crore (7.04 per cent) was the net result of savings of Rs.11,838.27 crore in ten grants and ten appropriations and excess of Rs.519.81 crore in six grants and three appropriations.