Question : WASTEFUL EXPENDITURE IN RAILWAYS



(a) whether there is no proper control and check on the wasteful expenditure and working of the Railways;

(b) whether the CAG has referred to this problem in its report of 2001;

(c) if so, whether the Government are contemplating to formulate and implement any concrete policy/programme on economy and austerity and to check the wasteful expenditure in Railways; and

(d) if so, the details in this regard ?

Answer given by the minister

MINISTER OF RAILWAYS (SHRI NITISH KUMAR)

(a) to (d): A statement is laid on the Table of the Sabha.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF STARRED QUESTION NO. 672 BY SHRI KUNWAR AKHILESH SINGH AND SHRI SHEESH RAM SINGH RAVI TO BE ANSWERED IN LOK SABHA ON 8.5.2003 REGARDING WASTEFUL EXPENDITURE IN RAILWAYS

(a) No, Sir. A well-set comprehensive mechanism for control of expenditure and on railway working exists on the Railways.

(b) Comptroller & Auditor General of India in its report of 2001 has not made any remarks on lack of proper control and check on wasteful expenditure on the railway system as a whole, but has, however, commented only on certain specific cases of possible loss of revenue/avoidable expenditure.

(c) & (d) The existing internal check system on Indian Railways requires all financial transactions to be completely pre-checked with reference to provisions contained in various Railway Codes, further instructions issued by the Ministry of Railways from time to time and also with reference to recognised standards of financial propriety. Railways are taking several steps to control expenditure. These measures include improving staff productivity, asset utilization, inventory management, fuel consumption and ensuring austerity in areas such as travel, publicity, hospitality, etc. In the last six years, Railways have consistently achieved saving in the Ordinary Working Expenses as compared to the Budget Estimates.