FY18: Railways may clock its worst-ever operating ratio at 98.5%
What's the story
Railways' operating ratio, the direct indicator of working of the government-run transporter is expected to settle at 98.5% for 2017-2018, recording its worst performance ever since 2000-2001 when it was 98.3%. Operating ratio indicates how much railways spends to earn a rupee. He said the number reflects the increased burden of allowances and pensions that have gone up due to 7th Pay Commission's revision.
A dip
98.5% operating ratio indicates a dip of over 2%
An operating ratio of about 98.5% in FY18 would mean a dip of more than 2% in the revised 96% figure announced in the February budget. The official also said that less than expected revenues from monetization of assets and dividend from PSUs going directly to the Finance Ministry after the merger of budget made things worse for the national transporter.
Details
In FY18, railways' salary bill increased by around Rs. 10,000cr
In 2017-18, railways' salary bill increased by around Rs. 10,000cr, while pension liability rose from Rs. 10,795cr. It also carries the load of a Rs. 33,000cr passenger subsidy. The operating ratio has been hovering above 90% for the last six years. In 2013-14, it was around 94%. The operating ratio target for the current year has been set at 92.8%.