Enhancement of the existing coal freight rates by about 30 per cent is the only important proposal in the Rail. way Budget for 1952-53 presented to Parliament today by Sir Gopalaswami Ayyangar.
The proposed increase is expected to bring an additional income of ₹6 crores in the coming year, of which ₹2.4 crores will be borne by the railways for their own coal consumption. Thus, the net burden which will be imposed on industries and consumers will be Rs. 3.6 crores only. After taking this sum into account, the surplus for 1952-53 is estimated at Rs. 24.87 crores.
Unlike in previous years the Railway Minister did not make a long speech. Instead he chose to present merely a financial statement in the form of a White 1 Paper showing the estimated receipts and expenditure for the coming year. It was but proper. he said, that the new House of the People, which would be supervising and controlling the administration for at least 11 out of the 12 months of the next financial year, should vote on the demands for grants. He would only ask the present House to vote supplies necessary to meet the estimated -expenditure for the first four months of the coming financial year. He, however, drew attention of the House to a few salient points in the estimates placed before it.
According to the revised estimates for the current year, the gross receipts are expected to increase to ₹288.06 crores, an improvement of ₹8.56 crores over the budget estimate, due mainly to large-scale imports of food grains and an increase in industrial production.
The actual surplus for 1950-51, is ₹15,01 crores as against the revised estimate of ₹14.24 crores.
MEMBERS SATISFIED
Lobby opinion was generally satisfied with Mr Ayyangar’s ste- wardship of railway finances, which it described as cautious and pru- dent. Members felt Mr Ayyangar had rightly claimed “there are few railways of the same magnitude- in countries of comparable size and volume of traffic-which can claim to have done so well in recent years as Indian railways.”
Mr Ayyangar referred to the financial soundness of the railways, which had been brought about despite additional services and larger amenities by keeping the growth in expenditure well below the growth in revenues. There was in addition what could be described as “operational efficiency.” and in this connection he referred to the railways’ outstanding achievement in averting famine in Bihar.
The capital programme for 1952- 53 comes to ₹80 crores, of which ₹43 crores are to be spent on replacement of rolling stock and machinery and about ₹32 crores for structural and other engineering works. A provision of ₹15 crores has also been made for track renewals to ensure faster movement of traffic.
WORLD CONGRESS
Mr Ayyangar mentioned two events that are likely to take place during the financial year-the hold- ing of a session of the International Railway Congress in this country, and the Centenary of Indian Rail- ways. The first train steamed out of Bombay in 1853 and the cente- nary which occurs in 1953, he announced, would be celebrated in ‘a befitting manner.
Reaffirming his faith that relations with trade unions could al- ways be kept happy Mr Ayyangar indicated how the threat of a strike during the year was averted by “the sense of responsibility which actuates the trade union leaders.” Although during the last two days there was talk that the strike was not off, Mr Ayyangar had no doubt it would be possible to arrive at a settlement acceptable to the Government and the trade unions.
TRIBUTE TO SANTHANAM
Mr Ayyangar paid a tribute to the officers and men of the rail- ways for their co-operation. He particularly mentioned Mr K. San- thanam, from whom he had received “co-operation and assistance which cannot be measured in any conven- tional terms.”
He ended by repeating what he hat said in his last year’s budget speech that the Indian railways had done definitely better, and would do still better in the years to come. The Railway Budget for 1952-53 has been framed on the assump- tion of a small drop in third class trame due to “general economic donations in the country,” according to the explanatory memorandum, says P.T.I. With increased industrial output,” it says, “there will, no doubt, be less unemploy- ment in industrial areas. bu: in view of the anticipated crop failure. with the resultant heavy unemployment of agricultural labour, the increased employment in the industrial sector may not prove to be a very significant element” It is also likely the present downward trend in upper class traffic will continue.
NEW RAIL LINK
The metre-gauge rail link be- tween Kandla, which is being deve- loped as a major port to offset the less of Karachi, and Desesa to serve the hinterland of Rajasthan. which depended previously on Karachi, is nearing completion and is expected to be opened for traffic partially in the coming year.
BUDGET.AT A GLANCE (in crores of rupees)
Gross Traffic receints 263 279 288 299 I Total working expenses 180 187 196 203 Miscellaneous expenditure 5 7 7 7 Appropriation to Depreciation reserve fund 30 30 30 30 Total revenue expenditure 215 224 233 240 Net Railway revenues 48 55 55 59 Dividend to General Revenues. 33 33 33 34 I Net surplus 15 22 22 25