The Indian Government has said that the operating ratio of the railways has witnessed deterioration in comparison to previous fiscals.
As per reports, in the railways, an operating ratio of 80 per cent or lower is considered desirable. An operating ratio indicates how much the railways spends to earn a rupee. An operating ratio of 94.9 per cent means that the railways is spending 94.9 paisa to earn 100 paisa (one rupee). A lower figure of operating ratio is therefore regarded better and is indicative of better financial health of the system.
Commenting on the issue, Minister of State for Railways Rajen Gohain told the media, "The recommendations of 7th Pay Commission with regard to pay and pension were approved by the government for implementation during 2016-17 and accordingly, the operating ratio of railways in revised estimates 2016-17 was estimated at 94.9 per cent."