Report No. 3 of 2012 - Compliance Audit on Finances, Union Government (Railways)

Date on which Report Tabled:
Tue 15 May, 2012
Date of sending the report to Government
Government Type
Union Department
Transport & Infrastructure


IR is a departmental commercial undertaking of the Government of India. It consists of 64,460 route kms1 on which more than 19,186 trains ply, carrying about 21 million passengers and hauling nearly 2.5 million tonne of freight everyday. Policy formulation and overall control of the Railways is vested in Railway Board comprising of the Chairman, Financial Commissioner and other functional Members. The IR system is managed through 17 zones having 68 operating divisions. Apart from the zonal railways representing the operational part of the system, there are six production units engaged in manufacturing of rolling stock and other related items.

From 1 April 1950, a separate Railway Budget is being presented to the Parliament prior to presentation of the General Budget every year. Though the Railway Budget is presented to Parliament separately, the figures relating to the receipts and expenditure of IR are also shown in the General Budget, as Railway Budget forms part of the total budget of the Government of India.

Report of the Comptroller and Auditor General of India-Union Government (Railways) for the year ended 31 March 2010 (Report No. 33 of 2010-11) highlighted that during 2009-10, the gross traffic receipts fell short of budgetary projections by two per cent ( RS 1,455 crore). On the other hand, total working expenditure exceeded the budgetary provisions by two per cent (by RS 1,250 crore), despite a reduction in appropriation to Depreciation Reserve Fund (DRF) by around 59 per cent (RS 3,138 crore). The net surplus after meeting dividend liability declined in 2009-10 by cent per cent (by RS 4,456.03 crore) over the previous year. Consequently, the operating ratio of IR declined from 90.46per cent in 2008-09 to 95.28 per cent in 2009-10. The Report also highlighted the declining balances in reserve funds of IR. Total reserve balances, declined by 68 per cent (by RS 10,623 crore) by the end of 2009-10 as compared to 2008-09. The financial performance of IR continued to be poor in 2010-11.

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