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Budget 2020: Indian Railways' operating ratio for FY20 at 98.41%

Operating ratio is a measure of the portion of revenue that goes into meeting the expenses. Hence, the lower the number, the better the performance.

February 01, 2020 / 18:13 IST

In FY2019-20, the Indian Railways spent about Rs 98.41 to earn every Rs 100, according to the revised estimates in the Union Budget 2020, which was tabled in the Lok Sabha by Finance Minister Nirmala Sitharaman on February 1.

This pegs the Railways' operating ratio at 98.41 percent compared to 98.30 percent in the year ago period.

The deterioration has been rapid after 2015-16, when the operating ratio was 90.5 percent.

The total earnings and expenditure of the Indian Railways in FY2019-20 as per the revised estimates of Budget 2020 stood at Rs 2,05,733 crore and Rs 2,02,458 crore.

In 2017-18, the operating ratio stood at 98.44 percent, the worst performance recorded by the Indian Railways in the last 10 years.

The budget document also cites the projected operating ratio for the Indian Railways in FY20-21 at around 97.30 percent.

Moneycontrol News
first published: Feb 1, 2020 05:49 pm

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