Goyal said this has happened mainly due to construction of new lines.
New Delhi: Union Railways Minister, Piyush Goyal, on Wednesday, defended his ministry after the Comptroller and Auditor General of India (CAG) ticked off Railways for recording an Operating Ratio of 98.44% in 2017-18, which was worst in the last 10 years.
Responding to the CAG report in Lok Sabha during the Question Hour, Mr Goyal said this has happened mainly due to construction of new lines and operating trains in economically unviable areas and payment of salaries and pensions after the 7th Pay Commission.
“There is a social cost of running a Government utility as a service to the people of India. Therefore, we should take into consideration the fact that large amounts are being invested in all these social obligations besides the financial impact of the 7th Pay The commission,” the minister said.
“The 7th Pay Commission itself has had an impact of over Rs 22,000 crore on the expenditure of the Railways which is more than 10% of the total revenue that is collected in the Railways,” Goyal said.