Indian Railways achieved robust financial growth in 2022–23, generating Rs 2.399 trillion in gross traffic receipts, marking a 25.51 per cent increase over the previous fiscal, according to the Comptroller and Auditor General (CAG) report presented in Parliament. The surge in revenue was primarily driven by freight operations, particularly coal transport, alongside increased passenger earnings, reflecting a gradual recovery from operational challenges and pandemic-induced disruptions.
The Ministry of Railways reported total expenditure of Rs 4.416 trillion, up 11.34 per cent from 2021–22. Capital expenditure accounted for Rs 2.039 trillion, reflecting a 7.21 per cent rise, while revenue expenditure reached Rs 2.376 trillion, up 15.15 per cent. Officials noted that staff costs, pensions, and lease-hire payments for rolling stock represented 72.22 per cent of total working expenses, highlighting the labour-intensive nature of railway operations. Despite persistent losses in passenger operations, which remained partially uncovered at Rs 52.57 billion, freight earnings allowed cross-subsidisation to sustain passenger services. Coal transport alone contributed 50.42 per cent of freight revenue. Consequently, the Railways posted a net surplus of Rs 25.17 billion in 2022–23, reversing the previous year’s deficit of Rs 150.25 billion. The Operating Ratio improved to 98.1 per cent from 107.39 per cent, indicating enhanced efficiency in balancing revenue against expenditure.
CAG’s audit, however, highlighted instances of unsanctioned expenditure amounting to Rs 64.83 billion across 1,932 cases, equivalent to 1.05 per cent of total spending. Lapses in budgetary and accounting controls were also noted, including allocations to a frozen project on the Ratlam–Dungarpur new line, which had been formally closed in 2019. Investments in Railway Public Sector Enterprises (PSEs) reached Rs 5.389 trillion as of March 2023, consisting of Rs 613.51 billion in paid-up capital and Rs 4.775 trillion in long-term loans. The Government of India contributed 79.91 per cent of the paid-up capital, with the remainder provided by financial institutions, central government companies, and state entities. Net profits of these enterprises doubled over five years, rising from Rs 61.46 billion in 2018–19 to Rs 120.56 billion in 2022–23. Of the 45 Railway PSEs, 33 recorded a combined profit of Rs 121.46 billion, though only seven declared dividends in accordance with Department of Investment and Public Asset Management guidelines.
Railway experts emphasised that the improved financial performance demonstrates the sector’s resilience, while pointing to the need for stricter fiscal discipline and operational oversight to sustain sustainable, equitable, and low-carbon transport services. The Railways’ focus on freight-led earnings, cross-subsidisation, and strategic capital investment positions it as a key driver of India’s green mobility and economic infrastructure goals.
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