RailEnquiry

New Delhi: Reeling under a severe financial crunch which is affecting its development initiatives and modernization drive, the railways could get a shocker as the government is learnt to have indicated a moderate hike of Rs 2,000 crore in gross budgetary support.
    At a time when the national transporter needs enhanced government support considering its poor fiscal health, it is expected to get Rs 26,000 crore from general exchequer for the next fiscal (2013-14).
    After taking the “bold” but unpopular decision of raising passenger fares last month and working hard to curtail its expenses, the railways was expecting a “reasonable” increase in government support to fund its modernization plan.
    A source said the government has indicated that a hike of 8.33% from last year’s gross budgetary support of Rs 24,000 crore is being worked out. The transporter has demand around Rs 38,000 crore for the next fiscal. “The proposed 8.33% hike is not as bad if compared with the overall increase in total gross budgetary support of all ministries and department which is around 5.8%,” a source said, adding that the allocation increase for some ministries such as rural development was less than the current year.