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Union Budget 2008-09  »   Story
Rail Budget to bring 'basket of comforts'
Press Trust of India
New Delhi, February 25, 2008
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Buoyed by an impressive turnaround, Railway Minister Lalu Prasad is likely to go in for a nominal reduction in passenger fares and rationalisation of freight rates in the "people friendly" Rail Budget to be presented in Parliament on Tuesday.

This will be fourth year in a row that is expected to see Prasad not hiking the passenger fares.

Sources said 26 new projects may be announced in the Budget which the Railway Minister said will be "people friendly".

The Railways' "major turnaround" in financial and technical performance came in for special mention from President Pratibha Patil in her address to Parliament on Monday.

While passenger fares may be reduced by three to five per cent, freight rates for petroleum, steel and iron ore can come down by three to four per cent, sources said.

The reduction is being contemplated as the Railways have managed to cut operational costs while increasing revenue through volume growth, they said.

While freight earnings have risen by 11 per cent, passenger revenue has gone up by 14 per cent during April 2007 to January 2008 providing enough scope to Prasad to go for fare reduction.

The cut in fares is likely to cover all classes while suburban fares may be rationalised.

As far as freight is concerned, Railways would continue with its rationalisation policy as observed in the past three budgets.

Enthused by the performance, Prasad has said his budget would bring "a basket of comforts for the common passengers."

Sector Analysis
AUTO
Negotiating a rough patch
Demand growth is expected to be buoyant driven by new vehicle launches, likely softening of interest rates and continued growth on the export front.
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Railway Budget
Lalu presents people's budget, slashes fares
The minister announced launch of several new trains and reduction in fares across all classes amid chaos by Opposition in Parliament.
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Features
A budget for Bharat
Buoyant tax revenues a lower fiscal deficit and an economy that's in top gear permit the FM to pump big money into agriculture and the social sector. Those efforts might help at the hustings, too.
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Economic Survey
'Expand telecom infrastructure, R&D'
"With rapid growth of telecom network, there is a need to further expand the infrastructure and research and development," the survey said.
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Surfers' comments
This is a very good budget, especially for agriculture and education. P Chidambaram is the best.
- By Saravanan P (plsharavanan@rediffmail.com)
If you can waive Rs 50,000 crore for farmers what about the tax on housing loan interest? That should also have been reduced.
- Chandra Shekar V (rilshekar@yahoo.co.in)
Please tax the street hawkers and give relief to the salaried persons.
- Rajaram (rajaramghurup@rediffmail.com)
This is the worst budget the finance minister has ever presented. The backbone of the country's economy is the transport but he completely missed it out.
- Jayakaanthan A (jayakaanthan@gmail.com)
The budget is sure to augment growth and will also lessen the volatility of the stock markets.
- Sidharth Paul (sidharth.paul@gmail.com)
Overall, the budget is satisfactory but the health sector should have been given greater importance.
- Ankit Chaudhary (chaudharyankit1987@gmail.com)
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Business Today's Budget edition
Editorial: Predictably populist budget
Special: Something for everyone...
Column: All for the common man
Exclusive interview with the FM
Maintaining the growth story
The Finance Minister defends Budget 2008 and the Rs 60,000 crore loan waiver doled out to farmers in an exclusive interview to Business Today's Sanjoy Narayan and R Sridharan.
VOX CEOs
"Total reduction of excise duties by 2% will give a welcome boost to the manufacturing sector. Also, the exemption of specified parts of set-top boxes from customs duties is commendable".
- Rakesh Bharti Mittal, Vice Chairman, Bharti Enterprises
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