New Delhi: The following are the highlights and implications of the three budget-related decisions taken by the Union Cabinet at a meeting presided over by Prime Minister Narendra Modi on Wednesday:


Merger of Railway Budget with the General Budget:


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- Distinct identity of Indian Railways will continue as a departmentally-run commercial unit


- Functional autonomy and financial powers will be retained by the Railways


- Railways will continue to meet their revenue expenditure from revenue receipts


- Railways will no longer pay dividend to the government totalling Rs 9,700 crore


- The merged budget will help present a holistic picture of government`s financial position


- It will cut legislative and procedural requirements.


Advancement of the Budget presentation:


- Advancement of budget will help complete related legislative business before March 31


- It will enable better planning and execution of schemes from the beginning of a fiscal year


- This will preclude the need for vote on account by the Lok Sabha


- It will enable the implementation of legislative changes in tax laws from the beginning of a fiscal


Merger of plan and non-plan classification of budget:


- Earmarking of funds for the Sscheudled Castes, the Scheduled Tribes and related subjects will continue


- Plan and non-plan expenditure distinction had led to fragmented view of resource allocation to various schemes


- It was becoming increasingly difficult to ascertain the cost of delivering a service and to link outlays with outcomes.


- The focus on plan expenditure had led to a neglect of expenditures on maintenance of assets and for providing essential social services.


- The merger is expected to provide corporate-style budgetary framework having a focus on revenues and capital expenditure.