The report submitted by the Comptroller and Auditor General of India (CAG) in December 2019 underscored that the operating ratio (ratio of operating expenses to operating revenue) of Indian Railways (IR) has been continuously increasing.
After scrutinising the financial parameters of IR in FY 2017-18, the CAG report mentioned that the operating ratio of 98.44 per cent would have increased to 102.66 per cent had IR not received advance receipts from NTPC and IRCON to the tune of ₹7,342 crore. It also highlighted that IR decreased the allocation of Depreciation Reserve Fund by 68 per cent, which would result in piling up of “throw forward” of works to the tune of about ₹1 lakh crore.
There are essentially two components that contribute significantly to the operating expenses. The first one is salary and other allowances, including bonus given to the employees on the roll. The second one is the pension and family pension paid to the pensioners and their spouses respectively till they live, which includes pensioners after superannuation and those who opted for voluntary retirement. Even in the 1950s, the share of salary and pension was about 53 per cent of the total operating expenses and it remained about the same level with smaller variations till the implementation of the Sixth Pay Commission in August 2008.
The committee of professors from Xavier Labour Relations Institute (XLRI) Jamshedpur helped the Sixth Pay Commission to arrive at the true remuneration of government employees considering all the benefits they get during service and during their retirement in comparison to the gross salary they get every month, and estimated that the true salary is 2.25 times of that gross salary. However, India witnessed a surge in the salary of private-sector employees in the first decade of 21st century till the global economic slowdown in 2008 followed by moderate Indian growth story.
This story is from the December 24, 2019 edition of The Hindu Business Line.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 24, 2019 edition of The Hindu Business Line.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Covid Presents An Opportunity For India
India must attract investors exiting China post-Covid. Streamlining of project clearances and relaxation in FRBM norms will help
Did Alternative Assets Shield You From Covid-19 Volatility?
The assets closely linked to stock and debt markets could not stave off the losses
How To Put Aircraft To Bed
Preserving grounded planes, to get them up and flying at short notice, is a challenging task. Ashwini Phadnis captures the process
There Can Be No Going Back On WFH
Covid-19 has fast-forwarded the shift to ‘work from home’. However, some face-to-face connect will always be needed
UN, WHO Urged To Ensure ‘Benefit Sharing' Of Covid-Related Data
Biopharma firms should reach vaccines, medicines to poor nations at an affordable price, say civil society bodies
With No Clear Signal From Rlys, States Explore Ways To Bring Back Migrants
Quarantine centres, cross-country buses being arranged even as migrants hop on to boats, trucks and ambulances
Centre Allows All Neighbourhood Shops To Open But With Riders
Final call will be taken by local authorities; shopping complexes that draw fewer ‘outsiders’ are permitted to operate
Covid Impact Relatively Muted In India
Compared to Italy and the US, India’s rate of infection spread has been slow. This can be attributed to the strict measures in place
How Global Trade Will Fare Post-Covid
China isn’t likely to lose its pre-eminent position soon. India, for one, will need to make manufacturing globally competitive
How To Curb Harassment In The Virtual Office
Training and sensitisation are essential. Institute a strict dress code and chat etiquette to ensure professionalism during video calls
