THE Bangladesh Railway keeps incurring a huge amount of losses although it has received large budgetary allocations over the years. In six financial years from 2019 to 2024, the revenue that the railway authorities could earn is Tk 91.29 billion against the target of Tk 134.28 billion. But, the authorities had to spend Tk 192.58 billion in the six financial years, taking the loss to Tk 101.29 billion. The agency received Tk 904.15 billion in budgetary allocation in the six years. The agency is reported to be earning more than the target only in passenger fares and telecommunications. And, it has failed in other areas such as goods transport, parcel, transport and commercial, estate, scrap and electricity. New services such as mango trains and cattle trains are yet to become popular. In the 2024 financial year, the authorities earned Tk 13.48 billion from passenger fares against the target of Tk 13.39 billion and Tk 1.54 billion from telecommunications against the target of Tk 1.4 billion. It, however, earned Tk 2.39 billion from goods transport against the target of Tk 3.94 billion.
The authorities earned Tk 140 million from the parcel sector against the target of Tk 680 million and Tk 440 million from the transport and commercial sector against the target of Tk 1.06 billion in the financial year. The earning from passenger fares, which is marginally past the target, appears the result of an increase in fares twice beginning in 2011, when the railway ministry was set up, first by 50鈥�115 per cent in 2012 and then by 7.23 per cent on an average in 2016, with promises for improved services. An increase in fare appeared the easy way to increase revenue by putting the burden down on passengers and by not shoring up issues that hold the agency back. Yet, the overall services have not improved. After the ministry was set up, many development projects were taken to revamp the agency, but it has kept incurring losses, the amount of which has increased in recent years. Experts say that the agency has taken up costly development projects without considering some other issues such as the rolling stock and work force. And, all this has worsened the situation. The adviser on the railways to the interim government seeks to say that the authorities could earn Tk 1 by spending more than Tk 2.5, noting that initiatives have been taken to bring down the gap with an aim to earn Tk 1 by spending an amount below Tk 2.
The earning-expense ratio that the government aims appears ludicrous. It should start with a positive ratio and on a positive note.
