Why are Railway Budget and The Union/General Budget presented separately

The railway budget is an anachronism.

In the days of the raj, the railways were very important for the British to loot India of its raw materials.

Opening it up was also crucial for the allowing goods imported from Britain to penetrate the interiors.

It was also used to transport the army and police to quell disturbances. However finance ministers of all times face a financial crunch.

So did the imperial member (finance) of the viceroy's council (equivalent of present finance minister).

The railway lobby protested that enough money was not been allocated to the railways and that it was dependent on the vagaries of the general exchequer.

 

Thus in 1924, after the report of an official committee, the railway budget was separated from the general budget.

 

Source: Masala Noodles

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