India’s national auditor has revealed a financial loss of ₹573 crores in Indian Railways, exposing serious flaws in revenue recovery, project execution, and asset management.
The report by the Comptroller and Auditor General (CAG) points to widespread inefficiencies within the Ministry of Railways, calling into question the Modi government’s claims of infrastructure growth and modernisation.
Despite growth claims, CAG flags incompetence and institutional failure in Indian Railways
According to the audit, multiple zones within Indian Railways failed to recover dues, mismanaged assets, and showed weak oversight in public spending. These issues led to operational losses that could have been prevented with proper planning and execution.
The CAG report highlights not just technical lapses but deep rooted systemic failures within one of India’s most critical departments.
This revelation stands in sharp contrast to the Modi government’s repeated claims of transforming Indian Railways into a world class institution. Despite high profile launches, branding campaigns, and budget announcements, the ground reality exposed by the audit paints a troubling picture.
Financial mismanagement, poor coordination, and failure to enforce accountability have continued under the current administration.
Experts say this is not an isolated case. In recent years, several internal departments, including defence procurement, public sector banks, and rural development, have faced similar criticism of inefficiency and data misreporting. The ₹573 crore loss in Railways is the latest example of how headline claims often mask deep institutional decay.
The opposition has reacted sharply to the CAG report, accusing the Modi government of misleading the public. Critics argue that while the government promotes narratives of bullet trains and digital transformation, the core systems remain outdated and mismanaged.
They also say the continuous push to privatize key railway assets might further erode transparency and public accountability.
Policy analysts and former railway officials are urging the government to stop focusing on surface level optics and instead reform internal auditing, recovery mechanisms, and administrative control.
The ₹573 crore figure is not just a number; it represents missed opportunities for investment, infrastructure upgrades, and service improvements that could have benefitted millions of daily passengers.
With more such audit reports expected in the coming months, the spotlight will remain on how the Modi government responds to criticism from its own institutional bodies and whether it chooses reform over rhetoric.
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