CAG highlights a major financial setback for Indian Railways, reporting losses of $69 million for FY23 due to revenue lapses, weak asset control, and poor project execution. This is reported by the railway transport news portal Railway Supply.

The report was presented in the Lok Sabha on Monday after its earlier introduction in the Rajya Sabha in April. It includes 25 audit observations based on test audits up to FY23, along with updates from later periods.

CAG Flags $69 Million Loss in Railways
Source, photo: infra.economictimes.indiatimes.com

According to the CAG, recurring inefficiencies in revenue management, contract enforcement, and planning remain unaddressed. These flaws threaten modernization efforts and could derail progress in India’s critical railway sector if corrective measures are delayed.

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CAG Highlights $1.8 Million Land Fee Loss

Northern Railway suffered a $1.8 million loss in land license fees after ignoring Railway Board directives regarding five government-aided schools. This violation reflects financial mismanagement and disregard for compliance policies that govern railway operations.

The audit also shows that poor revenue control and delayed project execution extend beyond isolated incidents. Ineffective planning adds more pressure to the national transporter’s finances, signaling the need for structural reforms and stricter compliance enforcement.

CAG Urges Accountability and Governance Measures

Experts stress that Indian Railways’ financial health directly impacts economic stability. Stronger monitoring, transparent processes, and timely project delivery can restore fiscal discipline. Without immediate reforms, similar lapses may burden public finances and hinder future development.

Source, photo: infra.economictimes.indiatimes.com

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