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Cutting expenses is a tough task for the Railways

RAILWAY officials doubt the sector's ability to drastically cut its expenditure as per its objective. The staff cost accounts for nearly 68 per cent of the total expenditure of the Railways, and there is no way the cost can be contained. The Railways has a total workforce of 1.6 million. According to an estimate, more than 20 per cent of them is fit for being declared surplus.

In a situation where even a modest increase in fares is not favoured, declaring one-fifth of the workforce as redundant would invite the staff's wrath. The fuel cost comes to another 22-23 per cent. There is little scope in cutting down on fuel consumpti on as it is price inelastic for the Railways. Capping it all, there is the profligacy of ministers in the name of launching new projects (usually laying foundation-stones) without caring for their viability or inaugurating new services.

Where, then, is there any scope of economising when more than 90 per cent of the total cost is virtually fixed? As a senior railway official, who has put in more than 30 years of service in the Railways, sums up: ``I have been hearing about the need for pruning expenditure ever since I joined the Railways more than 30 years ago. But I have not yet seen anything drastic happening in this regard.'' -- Our Bureau