Four reasons why separate Rail Budget is likely to be phased out

The 92-year-old practice of presenting a separate budget for Railways is likely to be scrapped. The Rail Budget will be merged with the General Budget after the government takes a final decision on the recommendations of the NITI Aayog member Bibek Debroy-led panel.

• According to economist Debroy, there is no constitutional or legal requirement for separate railway budget. Union Budget is a constitutional requirement.
• "If one is expecting the railways to function according to commercial principles then decisions should be left to railway board. The decision cannot and should not be left to Parliament," said Debroy.
• The railway budget is an avenue for populism with MPs demanding new trains and stops for existing ones. These decisions should be taken by railway board on a commercial basis, opines Debroy.
  
• Debroy is also of the view that a lot of resources are wasted in the process of preparing it. A very complicated relationship between Finance Ministry and Railways has evolved. Steps should be taken to simplify it.

With PTI inputs.