Unified Budget will save both time and energy
The Government's decision to do away with a separate rail budget is a welcome move. This will help the Ministry of Railways to concentrate on its core activities. The merger of the rail budget with the Union Budget will streamline the fiscal aspects of the Government. Now onwards, the Railway Ministry will not have to face populist pressures that come while preparing rail budgets. It can use its time, energy and resources for enhancing services, modernising and streamlining. The talk about Indian Railways losing its autonomy is baseless. The Ministry will be allocated the required funds and it will continue managing its affairs like before. The Union Ministry of Finance is not taking over the functions of the railways. Therefore, the division of powers and functions are not disturbed. Sensing the massive workload of the Ministry, the Government should have stopped the practice of a separate rail budget long back. It is a colonial practice that was initiated in 1924 to promote Indian Railways as a commercial activity. Though we are largely working under a political system established under the Westminster model and with laws framed in the British era, yet removing some of the practices like this will strengthen the efficiency of Government departments.
Indian Railways, being the largest public sector employer, demands responsible, timely and user-friendly administration, as its operations affect the entire country. This was observed to a considerable extent in the current tenure of Railway Minister Suresh Prabhu. Now, with more time in hand, he can plan and execute the measures needed for uplifting the services of the Ministry. The Bibek Debroy committee, which recommended the concept of a ‘unified budget', will lead to a single Appropriation Bill including the estimates of the Railways Ministry. With more pressure on the Government to implement its plans and programmes, the Debroy Committee's recommendations must be seen in the light of bringing efficiency rather than a de-glamourisation of the Ministry.
This decision must be seen alongwith the Government’s in-principle approval to advance the presentation of the Union Budget by a month. There is a possibility of the Budget being placed before Parliament on February 1. Advancing the Budget presentation by almost a month will offer departments and ministries more time to implement policies and programmes. There is also a proposal to end the classification of expenditures into Plan and non-Plan. This could be the next reform the Government is contemplating in financial governance. The idea has been around for a while, but never seriously considered.
However, the discontinuation alone of a 92-year old practice cannot help Indian Railways turn the corner. The reforms being introduced will remain incomplete unless they are complemented with a revamp of the monolith’s functioning. Suresh Prabhu is proceeding in the right direction. He must maintain it.