Question

Write the pros and cons of merging railway budget into union budget.

Answer 1

Pros:

(a) Indian railway is the primary transport in India; the budget weightage has considerably decreased.  The Union budget has now been allotted only 15% to the Indian railway from the total.  

(b) Indian Railways is facing a huge revenue loss. This merger will help to reduce the burden since it will directly transfer to the central finance ministry.

Cons:

(a) Fair hike can cause bad impression to the ruling party.

(b) Privatization of railway is difficult because private investors will be always cautious of the possibility of any sudden policy change.