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CAG Report On Railway Finance

CAG Report On Railway Finance:

The Comptroller and Auditor General (CAG) reported that in the fiscal year 2021-22, the financial health of Indian Railways entered a “concern zone.”

Key findings of the CAG:

  • The railway operator spent ₹107 to earn ₹100 due to increased pension funding
  • Indian Railways couldn’t generate a net surplus in 2021-22
    Total Expenditure increased over 35% more than the previous year.
  •  Over 75% of total working expenses are spent on staff costs, pension payments, and rolling stock lease charges
    Dependence on Budgetary Support and Resources Inadequate internal resource generation led to greater dependence on Gross Budgetary Support (GBS) and Extra Budgetary Resources (EBR)
  •  Passenger fares subsidized by profits from freight operations