India's federal government kept passenger and freight tariffs steady in its annual railway budget Friday and trimmed the revenue goal for the financial year through March 2010 due to the economic slowdown. Gross traffic receipts in this financial year are likely to be Rs884.19 billion ($18.41 billion), short of the Rs931.59 billion projected in the interim budget in February, Railway Minister Mamata Banerjee said in her budget speech. “Based on the review, it is very clear that the unrealistically high targets set in the interim budget are not sustainable and warrant a midcourse correction,” Banerjee said. The interim budget was in effect until the new government came to power in May. “I have now set more realistic targets for the year based on the continuing trend of recession in the manufacturing sector and exports,” she said. The government will introduce 57 new trains this fiscal year, up from the 43 trains indicated in the interim budget, while it will invest Rs407.45 billion in modernizing and expanding one of the world's largest railway networks. India is the only country in the world to have a separate budget for the Railways, underscoring the importance of the network which ferries about 20 million passengers each day and is the largest employer outside the armed forces. Long known for incurring losses, the Railways has dramatically improved in recent years by improving technology and cutting fares.
