The 92-year-old practice of presenting a separate railway budget will come to an end from the next fiscal year, after the Finance Ministry accepted the proposal of Railway Minister Suresh Prabhu to merge it with the general budget.
The Finance Ministry has set up a five-member committee of senior officials to work out the modalities for the merger. The committee has been asked to submit its report by 31 August.
If the merger takes place, the Indian Railways will no longer have to pay the annual dividends to the state budget. After the merger, the issue of raising passenger fares will be the Finance Minister’s call.
Share on:
