GENERAL KNOWLEDGE

Detailed explanation-1: -The practice of a separate budget for Railways was started in 1924. It was done on the recommendations of the Acworth Committee. At that time the railway budget constituted around 84% of the total budget and therefore it was recommended to separate it from the general budget.

Detailed explanation-2: -Rail Budget was separated from general budget in 1924. The Railway Budget was separated from the general government finances in 1924. The measure was taken on the recommendations submitted by a panel led by British economist William Acworth in 1920-21.

Detailed explanation-3: -Detailed Solution. The British had separated the Railway Budget in 1924 as a major part of the government revenues. The country’s Gross Domestic Product (GDP) was significantly dependent on the revenues generated from the Railways.