Sun Mar 29 11:54:28 UTC 2026: # Indian Railways Faces Scrutiny Over Unauthorised Expenditure

The Story:
The Indian Railways is under pressure to enforce financial discipline after repeated instances of unauthorized expenditure, totaling thousands of crores of rupees, have been flagged by the Comptroller and Auditor General of India (CAG) and taken up for review by the Public Accounts Committee (PAC). The Railway Board has issued directives to General Managers of all Zonal Railways and Production Units to curb the practice of incurring unsanctioned expenses on projects and then seeking retrospective approval. The Board emphasizes that this practice undermines financial propriety and violates government guidelines.

Key Points:

  • The Indian Railways has been directed to enforce financial discipline due to increasing cases of unauthorized expenditure.
  • The CAG has repeatedly highlighted this issue in audit reports, and the PAC is now reviewing the matter.
  • The Railway Board has issued a note stating that incurring expenditure beyond sanctioned costs circumvents scrutiny and violates financial propriety.
  • The 2023-24 CAG report revealed unauthorized expenditure of ₹9,122.24 crore involving 1,999 cases.
  • In the previous year, 2022-23, a similar expense of ₹6,483 crore was reported in 1,932 cases.
  • The railways spent ₹6,19,837.90 crore against the sanctioned grant of ₹6,47,031.69 crore in 2022-23, resulting in a net saving of ₹27,193.69 crore. However, the CAG noted that these savings indicate that core activities may not have been fully executed.

Key Takeaways:

  • The Indian Railways is facing significant challenges in maintaining financial discipline.
  • The CAG’s repeated highlighting of unauthorized expenditure indicates a systemic issue.
  • The Public Accounts Committee’s review underscores the seriousness of the problem.
  • The directive from the Railway Board suggests a renewed effort to address financial irregularities.
  • While savings were reported, the CAG raises concerns about the effective utilization of funds.

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