Overview

• Railways’ fiscal summaries showed a surplus of ₹2,517.38 crore, but cross-subsidisation records revealed a net loss of ₹5,257.07 crore when passenger losses were offset against freight profits.
• Passenger services incurred a loss of ₹60,041.18 crore while freight operations yielded ₹54,784 crore, leaving an uncovered deficit of ₹5,257.07 crore.
• Accounting for the understated expenditure raises the operating ratio to 101.33%, exceeding the Budget target of 96.98% and the reported 98.10%.
• The audit identified the largest class-level shortfalls in Sleeper (₹17,819.21 crore), Ordinary (₹17,076.90 crore) and Second Class (₹16,357.02 crore) services.
• The report, tabled in Parliament on August 18, 2025, highlights enduring governance and fiscal-transparency weaknesses with no immediate policy response documented.