The passenger earnings of the Indian Railway for first quarter of 2016-17 (upto June-16) is is 9.97 per cent less than the Budget proportion of Rs 12,845.41 crore during the said period at Rs 11,629.31 crore, Lok Sabha was told today. The financial effect of social service obligation on railways for the fiscal 2015-16 is Rs 24,938.57 crore, Minister of State for Railways Rajen Gohain said in a written reply. He said the earnings of passenger segment of railways for 2015-16 is Rs 44,283.26 crore. Indian Railways carry out certain transport activities which are uneconomic in nature but conducted in the larger interest of the society. Commodities like fruit and vegetables, bamboos, paper, sugarcane, manufactured cotton, charcoal, brick tiles and firewood among others were transported by railways at "below cost operation" as social service obligation. Losses incurred on such services, staff welfare and law and order costs, are assessed every year and termed as social service obligation of railways, Gohain added.