A more ‘in-between-the-lines’ rail budget
only supports the notion that the Congress party is preparing for an early Lok Sabha election. Except politics of claims and counterclaims, there was nothing new in
the maiden Railway Budget speech of Pawan Kumar Bansal.
After the recent hike in the passenger fares in January,
no one was expecting yet another hike in the Lok Sabha election year.
But the government coffers, more than the ill-health of
the Indian Railways, was on the radar of the makers of the Railway Budget
2013-14.
The UPA government needs billions in funds to fund its
populist schemes to encash them in the upcoming general elections, which by the
analysis of the political developments of the moment, are going to be held
later this year.
(WHY, MORE THAN ANY OTHER PARTY, THE CONGRESS PARTY WOULD
GO FOR A 2013 LOK SABHA ELECTION? - http://severallyalone.blogspot.in/2013/02/why-more-than-any-other-party-congress.html)
Indian Railways’ ill-financial health has been a matter of
concern for sometime now and the sudden fare-hike in January was a well thought
measure to address, at least, some elements of the financial decline.
The timing served two purposes in one go – financial and
political. It gave the Indian Railways the much needed cushion of increased
cash flows. It also saved the government from the protests of the political
opposition if the hike was announced at the floor of the Parliament during the
presentation of the Budget.
It also relieved the government as the increased cash
flows would reduce the burden on the Union Budget 2013-14 that an ailing Indian
Railways might have posed so that the government could spend more on its
populist dole-outs.
But, mere increasing the passenger fares was not enough to
address the issue. Indian Railways needs much more to improve and modernize its
network and infrastructure. The whole world, and the obvious comparison with China ’s large network of high-speed trains, is
putting India
But, when the primary concern was of survival, who was
going to think of modernizing and competing at the level of most modern
technological innovations in the rail transportation?
The need of survival asked for increased revenue or
increased funding by the government. Now a government, hard-pressed for funds,
and all out to collect funds to fund its populist measures in an election year,
could not have afforded much.
The
other way was increasing the sources of income. The only immediate option
available was hiking the fares. But the present administrators of the Indian Railways with the outfit being the
lifeline of the country directly affecting the life of almost every Indian, too,
were not in a position to do so in an election year. That would sound too
unpopulist. Isn’t it?
So, in order to sound populist and people-friendly, as
well as to increase the options of revenue generation, the UPA government decided
to take the back door.
To continue..
©/IPR: Santosh Chaubey - http://severallyalone.blogspot.com/
