The Indian Railways generated Rs 2.399 trillion from passenger and freight operations in 2022–23, marking a 25.51 per cent increase over the previous year, according to the Comptroller and Auditor General (CAG) report tabled in Parliament on Tuesday. The review, based on audited accounts for the year ending March 2023, highlighted an improvement in financial performance alongside operational challenges.

The Ministry of Railways recorded total expenditure of Rs 4.416 trillion, up 11.34 per cent from 2021–22. This included Rs 2.039 trillion in capital expenditure (a 7.21 per cent rise) and Rs 2.376 trillion in revenue expenditure (a 15.15 per cent increase). Around 72.22 per cent of total working expenses were spent on staff costs, pension payments, and lease-hire charges for rolling stock.

Gross Traffic Receipts reached Rs 2.399 trillion, driven by higher passenger, other coaching, and freight earnings. Coal transport accounted for 50.42 per cent of freight revenue. The Railways posted a net surplus of Rs 25.17 billion in 2022–23, compared with a Rs 150.25 billion deficit in 2021–22, with the Operating Ratio improving to 98.1 per cent from 107.39 per cent.

While the loss on passenger operations narrowed from the previous year, Rs 52.57 billion remained uncovered. Profits from freight traffic were used to cross-subsidise passenger and other coaching service losses. The CAG flagged unsanctioned expenditure of Rs 64.83 billion in 1,932 cases, representing 1.05 per cent of total spending.

As of March 2023, investments in Railway Public Sector Enterprises totalled Rs 5.389 trillion, comprising Rs 613.51 billion in paid-up capital and Rs 4.775 trillion in long-term loans. The Government of India contributed Rs 490.27 billion (79.91 per cent) to the paid-up capital, with the remainder from financial institutions, central government companies, and state entities.

Net profit of these enterprises rose from Rs 61.46 billion in 2018–19 to Rs 120.56 billion in 2022–23. Of the 45 Railway PSUs, 33 earned a combined profit of Rs 121.46 billion, though only seven declared dividends in line with the Department of Investment and Public Asset Management’s 2016 guidelines.

The audit also identified lapses in budgetary and accounting controls, citing a case where funds were allocated to a frozen project on the Ratlam–Dungarpur via Banswara new line, closed in September 2019, by the North Western Railway’s electrical department and subsequently cleared by the Railway Board.