Budget 2016

                                            

                                                                 BUDGET 2016

1)The Union Cabinet on 21 September 2016 approved the merger of Railway Budget with the General Budget thus ending a 92-year old practice of preparing a separate budget for the railways. This shift has been done on the recommendation of which committee’s report? – Bibek Debroy Committee on Restructuring of Indian Railways

Explanation: After the meeting of the Union Cabinet on 21 September 2016, the Government announced that from now all proposals of Railway Budget will be part of the General Budget and presentation of the integrated budget will be advanced by around a month. It hopes that advancing the date will help initiate revenue mobilization and capital expenditure measures right from the beginning of the fiscal year.

– However, functional autonomy of railway will be maintained. There will also be separate discussion on railway expenditure each year in the Parliament.

– The move follows a suggestion to the effect by Niti Aayog member Bibek Debroy in his report on restructuring the Indian Railways. A committee headed by Debroy last year recommended that the Rail Budget should be phased out progressively and merged with the General Budget.

2) In which year the practice of presenting a separate budget for Railways was started in India? – 1924

Explanation: It is worth mentioning that the first separate Rail Budget in India was presented in 1924. This practice was adopted following the recommendation of the 10 member-Acworth Committee in 1920-21, headed by British railway economist William Acworth.

– This report led to reorganization of railway finances and the finances of railway were separated from the general finances of the Govt. of India.

– The separation of Railway Budget from General Budget is the second major shift in the schedule of the budget by a National Democratic Alliance (NDA) government. The previous NDA government, under prime minister Atal Bihari Vajpayee in 2001, changed the time of presenting the budget to 11am, from the British era practice of presenting it at 5 pm.

The Union Cabinet on 21 September 2016 approved the merger of Railway Budget with the General Budget thus ending a 92-year old practice of preparing a separate budget for the railways. This shift has been done on the recommendation of which committee’s report? – Bibek Debroy Committee on Restructuring of Indian Railways

Explanation: After the meeting of the Union Cabinet on 21 September 2016, the Government announced that from now all proposals of Railway Budget will be part of the General Budget and presentation of the integrated budget will be advanced by around a month. It hopes that advancing the date will help initiate revenue mobilization and capital expenditure measures right from the beginning of the fiscal year.

– However, functional autonomy of railway will be maintained. There will also be separate discussion on railway expenditure each year in the Parliament.

– The move follows a suggestion to the effect by Niti Aayog member Bibek Debroy in his report on restructuring the Indian Railways. A committee headed by Debroy last year recommended that the Rail Budget should be phased out progressively and merged with the General Budget.