Railways Weighed Down By Pension Burden
The Hindu Business Line|December 24, 2019
Successive Pay Commissions have given rise to this situation, raising the operating ratio of the Railways
TS Ramakrishnan
Railways Weighed Down By Pension Burden

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.

Bu hikaye The Hindu Business Line dergisinin December 24, 2019 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye The Hindu Business Line dergisinin December 24, 2019 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

THE HINDU BUSINESS LINE DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
Covid Presents An Opportunity For India
The Hindu Business Line

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

time-read
4 dak  |
April 29, 2020
Did Alternative Assets Shield You From Covid-19 Volatility?
The Hindu Business Line

Did Alternative Assets Shield You From Covid-19 Volatility?

The assets closely linked to stock and debt markets could not stave off the losses

time-read
4 dak  |
April 29, 2020
How To Put Aircraft To Bed
The Hindu Business Line

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

time-read
5 dak  |
April 29, 2020
There Can Be No Going Back On WFH
The Hindu Business Line

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

time-read
5 dak  |
April 29, 2020
UN, WHO Urged To Ensure ‘Benefit Sharing' Of Covid-Related Data
The Hindu Business Line

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

time-read
2 dak  |
April 29, 2020
With No Clear Signal From Rlys, States Explore Ways To Bring Back Migrants
The Hindu Business Line

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

time-read
2 dak  |
April 28, 2020
Centre Allows All Neighbourhood Shops To Open But With Riders
The Hindu Business Line

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

time-read
2 dak  |
April 28, 2020
Covid Impact Relatively Muted In India
The Hindu Business Line

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

time-read
4 dak  |
April 28, 2020
How Global Trade Will Fare Post-Covid
The Hindu Business Line

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

time-read
4 dak  |
April 28, 2020
How To Curb Harassment In The Virtual Office
The Hindu Business Line

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

time-read
3 dak  |
April 28, 2020