As the Railways plans to shift towards the accrual system of accounting from the cash system, the Finance Minister said the accounting reform will better reflect performance Weeks before he presents India’s first combined general and railway budget, Finance Minister Arun Jaitley on Tuesday made a strong case for outsourcing of non-core functions like hospitality services of Indian Railways and pressed for a transparent accounting system. He said that unless the railways strengthens its performance and internal management system, it will lose out to competition from other sectors like highways and airlines in... more...
both passenger and cargo transportation. “The core competence of railways is to drive trains, to provide those services. Hospitality may not be its core competence and therefore, what is not within its core competence, the principle of outsourcing — which is accepted the world over — can be a logical addition to those activities of the railways,” Jaitley said. As the Railways plan to shift towards the accrual system of accounting from the cash system, Jaitley said the accounting reform will better reflect performance. “Your accounting systems must reveal more instead of concealing reality. What is the kind of investment in infrastructure, what is the kind of investment in railway safety, what is the kind of outcome of outlay that you have planned, I think those accounts must really reflect the reality,” he said. The government had in September scrapped the 92-year-old practice of presenting a separate railway budget and decided to present a combined general and railway budget for 2017-18 on February 1, 2017. Speaking at a conference on Accounting Reforms in the Railways organised by the CII, Jaitley said that year after year, the governments have indulged in populism and people listened to the Rail budget only to know about the number of new trains being announced. “I’m glad that over the last two years, the railways ... is concentrating on improving its quality,” he said.PTI
It has already started with small activities like station cleaning etc very successfully since many years. Need of the hour is to move ahead in a big way so that future avenues for betterment of IR opens up with experience and time.
Disclaimer: This website has NO affiliation with the Government-run site of Indian Railways. This site does NOT claim 100% accuracy of fast-changing Rail Information. YOU are responsible for independently confirming the validity of information through other sources.