Cabinet approves scrapping of the separate Railway Budget and merged it with the General Budget. The Union Cabinet on Wednesday approved the suggestion of Railway Minister Suresh Prabhu's idea of merging the rail budget with the general budget.
The 92-year-old practice of presenting a separate Rail Budget will now come to an end from the next fiscal. The idea is also got complete support from the Prime Minister.
Last month, Suresh Prabhu had said that the Railway Budget should be merged with the General Budget for the long term interest of national transporter as well as the country's economy. The Finance Ministry had also accepted Suresh Prabhu's proposal.
The Railways, which is the country's largest employer, has to bear an additional burden of about Rs. 40,000 crore on account of implementation of the 7th Pay Commission awards, besides an annual outgo of Rs. 33,000 crore on subsidies for passenger service.
Railways already facing an accumulated burden of a whopping Rs. 4.83 lakh crore towards execution of 458 unfinished and ongoing projects now the revenue deficit and capital expenditure of the Railways will get transferred to the finance ministry.