The Minister of Railways, Dinesh Trivedi, presented the Railways Budget 2012 to Parliament on 14th March. While commenting on the financial position of Railways, the Minister said that 'the Indian Railways are passing through a difficult phase'. The Operating Ratio for the closing year is now estimated to equal 95%. This is significantly higher than the 91.1% figure budgeted last year. Operating Ratio is a metric that compares operating expenses to revenues. A higher ratio indicates lower ability to generate surplus. Surplus is used for capital investments such as laying of new lines, deploying more coaches etc. Therefore, a smaller surplus affects the Railway’s capability to make such investments. Budget v/s Revised estimates 2011-12 Budget 2011-12 had estimated the performance of Railways for the financial year. Revised estimates have now been submitted. Taken together, these two figures help in comparing actual performance against targets. Some observations are enumerated below:
Budget estimates 2012-13 In 2012-13, Railways plan to improve Operating Ratio to 84.9% and to increase surplus to Rs 15,557 crore. This is more than 10 times the surplus generated in 2011-12 (Revised Estimates). The effective increase in freight rates is estimated to average 23%. During this time, passenger fares are also estimated to increase by an effective average rate of 19%. [1] Infrastructure Performance during the 11th Plan Under the 11th Five Year Plan, the total plan expenditure for Railways had been approved at Rs 2,33,289 crore. The Outcome Budget shows that the actual expenditure is only likely to be Rs 1,92,291 crore. Thus, expenditure will fall short by Rs 40,998 crore. This gaps exists despite a significant increase in the Gross Budgetary Support approved by Parliament. Plan expenditure during 2007-12 (In Rs Crore)
|
Approved Expenditure |
Actual Expenditure |
|
| Gross Budgetary Support |
63,635 |
75,979 |
| Internal Resources |
90,000 |
67,763 |
| Extra Budgetary Support |
79,654 |
48,549 |
| Total |
2,33,289 |
1,92,291 |
The Standing Committee on Railways, in its 11th report presented in August 2011, had sought an explanation from the Ministry. According to the Ministry, lower mobilization of internal resources and lack of extra budgetary support are the main reasons for the shortfall. Internal resource mobilization has been low because of (i) impact of the 6th Pay Commission; and (ii) slow growth in freight earnings due to the economic slowdown. Extra budgetary resources have been low due to non-materialization of funds through the Public-Private Partnership route. Proposals for the 12th Plan Two recent committees – Kakodkar Committee on Railway Safety and the Pitroda Committee on Railway Modernization – have called for large investments in the next five years. The Kakodkar Committee has recommended an investment of Rs 1,00,000 crore in the next five years to improve safety; the Pitroda Committee has recommended an expenditure of Rs 3,96,000 crore in the next five years on modernization. The Railway sub-group of the 12th Five Year Plan has also estimated a requirement of Rs 4,42,744 crore for various other investments proposed to be undertaken during the Plan period. [2] All three groups have called for significant investments in infrastructure augmentation in the next five years. Budget proposals 2012-13 According to the Minister’s speech, the Annual Plan outlay for the year 2012-13 has been set at Rs 60,100 crore. The plan would be financed through:
What happens now? The Budget is likely to be discussed in the two Houses within the next few days. Post the discussion, the Ministry's proposals will be put to vote. Once passed, the Ministry can put its proposals into action. For more details on the Railway Budget, including the projects proposed this year and the status of proposals made last year, please see our analysis here. To understand some of the challenges faced by the Indian Railways, see our blog post from last year. Notes: [1] The ‘effective average fare’ has been calculated by dividing the total income from the segment (freight/ passenger) by the total traffic (in NTKM/ PKM). This would vary with changes in fares as well as the usage by different categories of users (including the proportion of tickets booked through Tatkal). [2] Source: Report of the Expert Group on Railway Modernization (Chairman: Sam Pitroda)
In 2010, the Legislative Assistants to Members of Parliament (LAMP) Fellowship was conceptualised by PRS Legislative Research, creating a unique platform for young Indians to engage with policy making at the national level. The Fellowship, a first of its kind in India, provides an opportunity for youth passionate about public policy to work with a Member of Parliament. Launched in collaboration with the Constitution Club of India, the Fellowship began with 12 Fellows and has now grown to include more than 40 young men and women from across India working with MPs from across political parties.
The Work
The bulk of the Fellow’s work focuses on Parliament. On average, Parliament passes 60 Bills a year. These Bills, covering a wide range of issues from food security to criminal laws, represent the government’s policy choices. Informed debates on legislation are therefore critical. Parliamentarians also use the floor of the House to discuss and debate urgent matters of public interest. The LAMP Fellowship provides young Indians with the opportunity to do legislative work through a 11-month professional engagement with an MP. Fellows are exposed to critical issues in public policy through which they will acquire knowledge about policy, parliament and governance structures, develop analytical abilities and hone leadership skills.
The Fellow typically supports an MP by providing research inputs for: policy and legislative debates, parliamentary Questions, standing committee meetings, and framing private members’ Bills. Beyond Parliament, MPs have to focus on their constituency; LAMP fellows may work on issues at the constituency level. Many Fellows in the current cohort have also had a chance to visit the parliamentary constituencies, often travelling with the MP to meet district officials and engage with constituents. Visits usually include a trip to the site of a centrally-sponsored scheme, engaging with public health officials, or attending panchayat meetings. Some Fellows also assist their MPs with media-related work like drafting press releases and preparing research for public appearances.
Policy Exposure
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"At LAMP, there is no 'typical' day at work. Each day comes with new tasks, new challenges. My work for my MP has forced me out of my comfort zone to explore and understand an array of subjects." - Kavya Iyengar, LAMP Fellow 2012-13
Fellows also get the opportunity to interact with organisations from various sectors like Google India, UNHCR and BCG. For instance, this year’s Fellows participated in the iPolicy workshop for young leaders, organised by the Centre for Civil Society. Last year, the Indian School of Business (ISB) Hyderabad hosted LAMP Fellows for a 3-day residential leadership development workshop, led by professors and guest speakers, including former RBI Governor, Dr. YV Reddy.
The LAMP Fellowship provides policy exposure but also guarantees a truly distinctive year: no two LAMP Fellows have the same experience. Every MP will have different research demands; LAMP Fellows have to be flexible, self-motivated and hungry to learn. Work can be challenging but also hugely rewarding. Previous Fellows have used the Fellowship as a launch pad, pursuing further studies at top Universities like Yale, John Hopkins, and Oxford and embarking on careers in political consulting, public relations and think tanks. Some Fellows have even continued to support the work of parliamentarians, pursuing their area of interest like media, policy and constituency development projects.
India’s vibrant democracy is constantly confronted by complex, urgent and important challenges. The Fellowship provides a once in a lifetime opportunity to understand these challenges and, perhaps, even help overcome them. Be a part of the solution, be a LAMP Fellow.
