The Union Cabinet on Wednesday cleared the merger of the Railway and the Union budget, scrapping over a nine-decade old tradition of having a separate Railway Budget.
Over the Rs 33,000 crore that it bears on passenger service subsidies, the Indian Railways had to bear another additional Rs 40,000 crore for the 7th Pay Commission awards.
Additionally, the ongoing projects under the Railways poses a Rs. 4.83 lakh crore burden.
Following the merger, the deficits in the revenue and the capital expenditure will be transferred to the Ministry of Finance.
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The budget process is set to start in October’s first week followed by a mid year review on November 15. By December 25, the Government hopes to undertake the consultation of industries and stakeholders. By next year, January 7, the government proposes ti complete the GDP projection.
By mid February, the three week recess will be advanced in the Parliament’s long budget session.