[Marxistindia] on railway budget

[news from the cpi(m)]

                                                           July 03, 2009


Press Statement


The Polit Bureau of the Communist Party of India (Marxist) has issued
the following statement:


                     On The Railway Budget 2009-10

The Railway Budget presented by the Railway Minister in Parliament today
reflects a marked deterioration in the financial position of the
Railways. The Railway Budget of 2008-09 had reported a cash surplus of
around Rs. 20000 crore. This surplus had come down to Rs. 13500 crore in
this year's interim Railway Budget (February 2009) and has come down
further to Rs. 8700 crore in the current Railway Budget. The UPA
Government owes an explanation for this serious deterioration of
performance. Why has the cash surpluses of the Railways depleted so
rapidly in such a short span of time? 


It is evident that the economic slowdown has adversely affected Railway
revenues, especially from freight traffic. Estimates for Receipts have
been revised downwards from the targets set by the interim Railway
Budget presented by the UPA Government earlier this year, which the
present Railway Minister has termed “unrealistically high” in her
speech. However, the present Railway Minister has failed to come up with
any fresh ideas in tackling the situation and turnaround the declining
revenue situation. Rather she has chosen to take recourse to the same
flawed route of privatisation through PPP projects in a host of areas.
The Railway Minister’s reliance on several PPP projects, from
development of 50 “world class stations”, new freight and coach
terminals, logistics parks, special purpose rolling stocks, perishable
cargo centres etc., seems completely misplaced at a time of economic
recession when private investment is hardly forthcoming. The Railway
Minister has herself admitted in her speech that out of Rs. 3400 crore
earmarked in the Annual Plan for 2009-10, for resource mobilization
through PPP, “Rs. 3300 crore would just not materialize”. 


This contradiction in the approach of the Railway Minister overshadows
some of the positive measures announced in the Railway Budget 2009-10,
like no hike in passenger fares, Rs. 25 monthly ticket for people
earning less than Rs. 1500 per month or a special recruitment drive to
fill up vacancies in railway posts for SC/STs, physically challenged,
minorities and women. The allocations for crucial areas like railway
modernization, safety, electrification etc. are also inadequate.


The CPI (M) demands that the moves towards privatisation and outsourcing
in the Railways, which has received a major thrust in this year’s Budget
be reversed.


end