Prof. J.D.Agarwal, Chairman, Indian Institute of Finance has welcomed Railway Budget presented today in Parliament. The Railway Budget 2003-04 is people friendly, employment oriented (would generate 23,500 additional vacancies in safety category and constables). He has also appreciated the rationalisation of goods traffic fares and passenger fares. The new schemes announced and the pattern of financing through ADB, World Bank, market borrowings and internal resources is another welcome feature. The Railway Minister announcing the payment of proposed dividends for 2002-03 for Rs. 2930 crores in full will provide relief to Finance Minister in his forthcoming budget.

However, reduction in passenger earnings by Rs. 720 crores is a matter of concern. Dr. Agarwal feels that the goods traffic fares and passenger fares should have been increased by about 5% to partially take care of 7% increase in working expenditure for the year 2003-04. It were have helped the railways to mop-up additional 2000 crores to undertake some more projects and also in improving the quality of service. Improvement in service both in terms of quality and quantity would have helped railways to increase gross earnings.

According to Prof. Agarwal, the goods traffic and passenger fares have probably not been increased keeping in view the forthcoming elections in some of the States. The railways require to add wagons, new trains, and also additional railway lines, doubling gauge conversions, and electrification in a big way.