In its 20th report submitted to the Parliament, PAC has asked the Railways to adopt a multi-pronged strategy of budgetary control like proper internal audit system, periodic reviewing and monitoring of the trends of expenditure vs the grants and appropriations approved by the Parliament.

The committee further said only an effective budgetary control mechanism would eliminate the ministry's recurring savings. PAC noted that the "incidence of excesses and savings in so many grants/appropriations can certainly be minimised to a great extent if a multi-pronged strategy of budgetary control like sound internal audit system, periodic reviewing and monitoring of the trends of expenditure vs the grants/appropriations approved by the Parliament is adopted". The committee said the Railways should make sure its estimates for pension and other retirement benefits do not go awry to a large extent. The observation was made when it found that during the 1997-98 appropriation accounts, the Railways saved Rs 158.40 crore under the grant for PF, pension and other retirement benefits.

In its explanatory note, the ministry told the committee that these savings were mainly due to finalisation of less commutation cases, less cases of voluntary retirements, less finalisation of revised pension cases as per the Fifth Pay Commission etc.