While presenting his second Railway Budget, Railway Minister Suresh Prabhu said this is not his Budget alone, but represents the aspirations of the entire Railway family. He says the Budget has incorporated inputs given to him by the citizens of India (through social media), industry experts and all other stake holders and under the guidance of Prime Minister Narendra Modi.
He said his ministry is doing all it can to to translate the government's vision into reality and intends to change the thinking of increasing revenue through tariff hike.
Claiming these are challenging times due to the 7th Pay Commission, Prabhu said he is expecting an operating ratio of 92 percent for year 2016-17. He says the rise in operating expenditure because of the Sixth Pay Commission Report six years back was around 32 percent. However in FY17, Prabhu hopes to limit rise in operating expenditure to 11 percent.
He also expects savings of Rs 8,720 crore in FY16.
Prabhu has proposed capital expenditure at Rs 1.21 lakh crore for FY17.
He has pegged FY17 gross traffic revenue target at Rs 1.85 lakh crore, up 10 percent YoY, with passenger revenue target at Rs 51,012 crore, up 12.4 percent YoY. He expects to garner Rs 1.18 lakh crore by way of freight revenue in FY17.