Wednesday, September 16, 2009

EARNINGS BUDGET


EARNING BUDGET
The Budget Estimation of Traffic earnings is framed under Four distinct categories viz. (i) Passenger (ii) Other Coaching (iii) goods and (iv)sundries. The cumulative total of the above categories form the gross earnings. The commercial branch initially compiles the estimate of earnings in the proforma prescribed by the Board. This is based on the physical performance of previous year and the and the actual earnings and other available statistical data for the current year. Following are the methodology adopted for estimates of figures under each category.
1 PASSENGERS :
The originating No. of passengers separately for suburban and non-suburban should be first assessed in the basis of the trend during the first four months. the current year and the actual of last year. This information is available in the 6 A statement. While assessing the above, commitments of growth in passengers as in the Budget papers as well as Railway's own growth and pattern of traffic should also be taken into consideration. These originating No of passengers, thus estimated should then be converted into carried passengers. This is done by applying the ratio of originating to carried No of passengers as per the trend of current year and last year. The average lead i.e., the average distance carried over the Railway shall then be fixed based on the trend of previous year. Change in the lead depends on the Railways jurisdiction or change in the pattern of traffic. Normally the lead of' passenger traffic is constant. The average fare per passenger per km is used at the fare of previous year's actual. In the event of any revision in fare, the average fare is suitably modified with reference to the trend of current year. By multiplying the rate to the passenger KMs, passenger earnings are assessed (carried No of passengers x lead x rate = passenger earnings)
2 OTHER COACHING;
This head consists of earnings of parcels, luggage and other traffic. The traffic prospects, in this category are assessed by the Commercial Department considering the trend of movement of fruits (like plantain and oranges) based on the reports given by DRMs. Here again the factors like postal haulage charges billed against P&T Department and their acceptance are also taken into consideration.
3 GOODS
The originating tonnage are fixed by thc Board after discussion with the COPS in a meeting in the Board's oflice. The originating tonnes thus fixed will form thc basis for thc preparation of the Goods earning projection. Based on the originating tonnes as fixcd and approved hy GM. the carried tonnes arrived at range-wise by applying the ratio of originating to carried tonncs as is available in the 7-C statistical statement for the last year and current year. The average falr per tonne per kilo meter is arrived after taking into account the rate prevalent in the 7-C statement after suitably modifying the same with the current ttend and revision in freight rate etc. On the basis of the above statistical data the freight earnings are estimated as under :-
Carried tonnes x lead = NTKM
NTKM x rate = earnings (by multiplying the lead and rate to carried tonnes, goods earnings projections are fixed)
In addition to the freight earnings as estimated above, certain Misc, earnings such as wharfage, demurrage, siding charges, etc- are added by estimating the same based on the previous years actuals and the trends noticed during the year.
The freight earnings together with the Misc. earnings will form the total goods earnings of the Railways, commoditiy wise steel( manufactures, pig iron, alloy steel), coal for steel plants, washeries railway and other users, cement, ore for exports, food grains, fertilizers, general goods, but railway material separately.
4 SUNDRIES
an
The sundry earnings consists of rents recovered, advertisement thargc, catering earnings, profit for work done for outsiders in workshop, dividend accrued from State Road Transport Corporations and interest and maintenance charges of siding etc. The estimates under this category are done in relation to the current year's trend as well as earnings potential.

EARNINGS BUDGET (SPECIMEN)
Sl no PASSENGERS ANTICIPATED FOR THE YEAR
1 No. of originating passengers 200 MILLION
2 Carried No, of passengers 220 MILLION(100:110)
3 Average lead (in km) 230
4 Passenger km (2 x 3) 220x230)=50600 MILLION
5 Average fare in paise 12 paise
6 Earnings (4 X 5) (Rs in Crores) 607 Crores

GOODS:
Originaring tonnage 34.5 million tonnes
Tonne carried (100:260) 89.7 million tonnes
Average lead in km 435
Net tonne km (2 x 3) (435x89.7) =39019.5 million
Average rate per km 35 paise
Goods Earnings (4x5) 1365.68 Crores
Other earnings (siding,wharfage, Demurrage etc) 14.32 Crores
Total Goods Earnings 1380.00 Crores
Traffic suspense: station outstanding, outstanding in the accounts office balance sheet, admitted debits, objected debits, wharfage, demurrage, frieght on hand, frieght not on hand, current freight special advices

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