The railway budget is pro-poor adn growth oriented but would fuel inflation and make the finance minister's job more difficult. The railway Minister has tried to blance between variety of needs of the railway and the economy under the given financial constraints. Politics rather than economic prevailed in budget making excersies, say Prof. J.D.Agarwal , Director, Indain Institute of Finance

According to Dr. Agarwal increase of freight rate by 12 per cent in all items except consumer items of mass consumption and increasing the fares of AC First Class Shatabdi, Rajdhani Express etc. by 10 per cent can not be justified as year after year the railway ministers atttack these sectors of users of railway service. Exempting consumer items from increase infreight rates and also from increse in second class fares years after year using pro-poor and social justice plank bring dissortion in the system. How can 93 per cent of the passangersbe subsidised continuously users.

Marginal increase in second class fares and also consumer items of mass consumption by about 3 per cent were have helped meeting the financial rquirements of both railway and the economy. This were have also helped to resort to a tolerable level of single digit increase of 7 to 9 per cent instend of proposed increase of 12 per cent in freight rates and 10 per cent in AC First class.