Railway Minister Suresh Prabhu asks people to voluntarily give up their fare subsidy

Railway Minister Suresh Prabhu has asked people to voluntarily give up their railway fare subsidy, special weekend fares for some trains and last-minute discounts on vacant berths, according to a report in The Indian Express .

The report, however, also said that it may be complicated to ask people to give up their railway fare subsidy.

For example, under the petroleum ministry, the bank accounts of customers were linked to their LPG connections, which made it easier for the people to give up their cooking gas subsidies.

PTI had earlier reported that railways will continue to function as a department run commercial undertaking and a separate statement of budget estimates and demand for grant will be created for the national transporter after the merger of Railway Budget with the Union Budget from the fiscal 2017-18.

The merger of the Railway Budget with the Union Budget is based on the recommendations of the committee headed by NITI Aayog Member Bibek Debroy, Minister of State for Railways Rajen Gohain had said in a written answer.

He had said that a committee with representatives from Ministry of Finance and Ministry of Railways examined the issues involved and worked out the procedural details. A single Appropriation Bill, including the estimates of Railways, will be prepared and presented by Ministry of Finance to Parliament and all legislative work connected therewith will be handled by Ministry of Finance.

The Railways will get exemption from payment of dividend to General Revenues and its capital-at-charge would stand wiped off. Finance Ministry will provide Gross Budgetary Support to Railways towards meeting part of its capital expenditure and the national transporter may continue to raise resources from market through extra-budgetary resources as at present to finance its capital expenditure.