Merger of Rail and General Budget in India

1) Recently, the government of India has decided to end the 92 year old practice of a Separate Railway budget by merging it with General budget. Which of the following is/are the implications of this move?

a) There will be a single Appropriations Bill, including the estimates of the Railways Ministry.
b) The revenue deficit of the Railways will be handled by the Railway Ministry only.
c) Both a and b
d) Neither a nor b

2) Which of the following is/are the reported reasons for this merger?

a) To prevent the misuse of budget as populist measure by politicians.
b) To save huge sum of annual dividend payment to the Government of India by the Indian Railways.
c) To overcome the progressive reduction of the Railway's share in the General Budget,over the years.
d) All of the above

Answer

1) a , The revenue deficit of the Railways will be handled by the Finance Ministry after the merger.
2) d, After the merger, Indian Railways need not to pay the annual dividend payment to the Government of India on the budgetary support given each year, saving the financially stressed Railways about Rs 10,000 crore annually.

Reference : The Hindu