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Budget 2018: Jaitley fixes railways’ FY19 capex at Rs 1.48 lakh crore, higher by 18k crore

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Finance Minister Arun Jaitley has earmarked Rs. 1.48 lakh crores as railways’ total capital and development expenditure for 2018-19 (April-March). This is nearly 14 percent higher than the Rs 1.3 lakh crore Jaitley had set aside in the last financial year.

Jaitley in the last budget had announced the establishment of a Rashtriya Rail Sanraksha Kosh for passenger safety. The fund will have a corpus of Rs. 1 lakh crore over five years.

According to reports, the railways aims to end FY19 with an operating ratio of 93 percent, a 200 basis point improvement from 2017-18’s 95 percent.

Operating ratio is a measure of money spent to earn every rupee, and hence, the lower, the better. The railways no more announces its operating ratio, a practice it stopped last year when the Railway Budget was merged with the General Budget.