The Comptroller and Auditor General of India has tabled the Railways Finances Report in Parliament.<\/span><\/p>\n Operating Ratio(OR): <\/b>It has deteriorated from 97.299% in 2018-19 to 98.36% in 2019-20 (This is the worst operating ratio in the past 10 years). Moreover, if the actual expenditure on pension payments is taken into account, the ratio will be 114.35 %.<\/span><\/p>\n Total Receipts:<\/b> The total Receipts has decreased by 8.30% in 2019-20 as compared to 6.479% increase in 2018-19.<\/span><\/p>\n Cross-Subsidization:<\/b> Profits from freight traffic were utilised to compensate for the loss on operation of passenger and other coaching services.<\/span><\/p>\n Firstly, <\/b><\/em>Diversify freight basket to enhance earnings and also exploit idle assets to increase other earnings.<\/span><\/p>\n Secondly,<\/b><\/em> take steps to augment internal revenues, so that dependence on Gross Budgetary Support (GBS) and Extra Budgetary Resources (EBR) is contained.<\/span><\/p>\n Thirdly,<\/b><\/em> Review the working of loss making PSUs and fast track the winding-up process of\u00a0<\/span>non-working Railway PSUs<\/span><\/p>\n Fourthly, <\/b><\/em>revisit the passenger and other coaching tariffs so as to recover the cost of operations in a phased manner and reduce its losses in its core activities.<\/span><\/p>\n Source:<\/b>This post is based on the article<\/span> \u2018<\/b>Railways\u2019 98% operating ratio not a reflection of its true financial performance: CAG<\/b>\u2019<\/b> published in<\/span> Indian Express <\/b>on 23rd<\/sup> Dec 2021.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":" What is the news? The Comptroller and Auditor General of India has tabled the Railways Finances Report in Parliament. What are the key findings of the report? Operating Ratio(OR): It has deteriorated from 97.299% in 2018-19 to 98.36% in 2019-20 (This is the worst operating ratio in the past 10 years). Moreover, if the actual… Continue reading Railways\u2019 98% operating ratio not a reflection of its true financial performance: CAG<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,9],"tags":[10500],"class_list":["post-155722","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-public","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/155722","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=155722"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/155722\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=155722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=155722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=155722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What are the key findings of the report?<\/b><\/h5>\n
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\n Note<\/strong>: OR is the ratio of the working expenditure (expenses arising from day-to-day operation of Railways) to the revenue earned from traffic. A higher ratio indicates a poorer ability to generate surplus that can be used for capital investments such as laying new lines, or deploying more coaches.<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n What are the recommendations given by the CAG Report?<\/b><\/h5>\n