NEW DELHI: Railways will no longer have to pay annual dividends to the exchequer, but will maintain its functional autonomy after merger of Rail Budget with General Budget.
Railways will bear the burden of 7th Pay Commission, besides the regular salary and pension payments for its present and ex-employees.
At present, the wage bill of railways is around Rs 70,125 crore and pension bill is about Rs 45,500 crore while the annual fuel bill is more than Rs 23,000 crore.
Railways has to also bear an additional burden of aroundRs 30,000 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.
In a major budgetary reform, a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi, today approved the merger of Rail Budget with General Budget.
However, railways will maintain its separate identity and functional autonomy, Railway Minister Suresh Prabhu said.
As far as the burden of concessional fare in different categories including sportspersons and patients is concerned, the Government will constitute a separate committee to find out a way forward for it. (AGENCIES)
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