Question : Reallocation of Funds

(a) whether the Government has formed a Committee to relook budget fund reallocation in Railways to prevent misuse by overlap of allocations;

(b) if so, the details thereof along with the detailed mandate and objectives of setting up of this Committee;

(c) the details of the misuse of funds noticed in Railways due to overlap of allocations during the last three years, year-wise;

(d) whether the Government has taken measures to ensure that utilisation of funds is in line with the requirements of the Railways in the country; and

(e) if so, the details thereof and if not, the reasons therefor?

MINISTER OF RAILWAYS, COMMUNICATIONS AND
ELECTRONICS & INFORMATION TECHNOLOGY

(SHRI ASHWINI VAISHNAW)

(a) A committee has been formed to examine the feasibility of merging various Funds operated by Railways and other connected issues.


(b) The Terms of Reference for the Committee include:
i. to examine the relevance/need for continuance of Funds in their present form, including the need for separate ring-fenced special purpose funds like Development Fund, Depreciation Reserve Fund, Railway Safety Fund and Pension Funds.
ii. to examine the feasibility of merging existing Railway Funds based on relevance and need and suggest rules of allocation for merged Funds.
iii. to suggest mechanisms for internal controls for ensuring judicious use of Funds in case of merged Funds.
iv. to bring out changes in codal provisions and existing instructions necessary for implementation of the recommendations.
(c) No misuse of funds has taken place on Indian Railways during last three years.
(d) and (e) Fund provision in Budget is made for expenditure as per requirement projected by Railways, progress of works and overall availability of resources.


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