ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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From 50 Years Ago (25 February 2006)

estimated in the budget last year. Ordinary Rs 23 crores, after allocating Rs 45 crores to the FROM 50 YEARS AGO working expenses have, it is true, also in-Depreciation Reserve Fund and paying over creased; but this increase has been much less Rs 39 crores as Dividend to General Revenues. than on the receipts side. In consequence, It is good to see the railways relatively Shri Shastri has not only been able to step prosperous once again and think in terms of up the appropriation to the Depreciation net surpluses of over Rs 20 crores. But there Vol VIII, No 8, February 25, 1956 Reserve Fund in 1955-56 by Rs 10 crores; but is as yet no room for complacence in this he is able to show a larger net surplus as well. regard. The size of railways

FROM 50 YEARS AGO estimated in the budget last year. Ordinary Rs 23 crores, after allocating Rs 45 crores to the working expenses have, it is true, also in-Depreciation Reserve Fund and paying over creased; but this increase has been much less Rs 39 crores as Dividend to General Revenues. than on the receipts side. In consequence, It is good to see the railways relatively Shri Shastri has not only been able to step prosperous once again and think in terms of up the appropriation to the Depreciation net surpluses of over Rs 20 crores. But there

Vol VIII, No 8, February 25, 1956 Reserve Fund in 1955-56 by Rs 10 crores; but is as yet no room for complacence in this

he is able to show a larger net surplus as well. regard. The size of railways’ surplus andThe Railway Budget The Minister was, secondly, in the happy depreciation provision has to be viewed against (Editorial) position of assuring the House that, with the capital expenditure of the railways in the

nothing more than a 6¼ per cent surcharge coming years. In line with everything else

The Union Minister for Railways, Shri Lal on freight rates, the railways would be able under the Second Plan, the railways have a Bahadur Shastri, must have enjoyed present-to gather a much larger surplus in 1956-57. heavy development programme, involving an ing his budget for 1956-57. He was, in the The surcharge would add Rs 11.6 crores to outlay of Rs 1125 crores over the five-year first place, able to tell the Lok Sabha that the railway receipts and would not be levied on period. And even with the surcharge on freight mammoth undertaking managed by him did transhipments of grains and pulses, fodder, traffic, the railways will be able to find only better in 1955-56 than he had anticipated this manure, khadi, newspapers, newsprint and Rs 375 crores, or only a third of the needed time last year. Gross traffic receipts in the year books. Given this additional charge, and assu-resources. In other words, the main burden that is ending are expected at Rs 314 crores, ming a further increase in the volume of traffic, of railway development will fall on the General or nearly Rs 22 crores more than the amount the railways would have a net surplus of nearly Budget rather than on the railway budget.

Economic and Political Weekly February 25, 2006

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