The Railway Budget impact on government budget is a total of Rs 416.45 billion.
The Railway Budget 2015-16 projects a plan outlay of Rs 1000 billion, which is 52% higher than the revised estimates for fiscal 2014-15. The plan outlay is to be financed by central government budgetary support, market borrowing, internal resources, PPP and a new financing approach.
The impact of the Railway Budget on the Union Budget is a budgetary allocation of Rs 400 billion plus diesel cess share of Rs 16.45 billion. Gross budgetary support is higher by 25% from Rs 316 billion budgeted for fiscal 2014-15.
IRFC (Indian Railways Finance Corporation) will borrow Rs 177 billion through issue of bonds, which is higher by 46.5% from last fiscal borrowing of Rs 56 billion. Apart from IRFC borrowing, Institutional Finance that is a new financing scheme will be raising Rs 171 billion.
Internal resources and PPP will add Rs 178 billion and Rs 58 billion respectively.
The Railways ended last fiscal with a surplus of Rs 73 billion despite lower than projected passenger earnings growth of 17.7% ( 22.2%) while gross traffic receipts was in line with budget estimates. Ordinary working expenses grew less than budgeted at 11.7% (15.5%). Falling diesel cost has helped lower expenses.
Pension is a big expense for the Railways at Rs 295 billion for fiscal 2014-15 and is estimated at Rs 352 billion for fiscal 2015-16. Passenger traffic and gross traffic receipts are projected to grow at 16.7% and 15.3% respectively. Ordinary working expenses are projected to grow at 9.6%.