Railway budget: Disappointment as no change in outlay

The Union Budget for FY 2025-26, presented by Finance Minister Nirmala Sitharaman on Saturday, maintained the Railways’ allocation at Rs 2.55 lakh crore, almost the same amount that was allocated the previous fiscal year.

Despite no major reforms or increased funding for key projects like gauge conversion and rolling stock improvements, the focus remains on safety and electrification.

For the second consecutive year, the Railways’ capital expenditure (capex) stands at Rs 2.52 lakh crore. Track renewal received Rs 22,800 crore, up by Rs 500 crore from FY25, while Rs 6,800 crore was allocated for signalling and telecom and Rs 6,150 crore for electrification, a slight increase from Rs 6,072 crore last year.

The budget envisions constructing 700 route km of new railway lines, converting 200 km of gauge, and doubling 2,600 km of existing tracks in FY26. The Railways also plan to manufacture 100 diesel locomotives, 1,600 electric locomotives, 9,423 coaches and 3,800 wagons, with Rs 45,530 crore allocated for this purpose.

On the revenue front, the Railways project Rs 92,800 crore from passenger fares, with AC First Class expected to generate Rs 1,526 crore and AC III Tier Rs 37,115.32 crore. Sleeper Class (Economy) revenue is estimated at Rs 16,508.55 crore. Freight earnings are projected at Rs 1.88 lakh crore, with coal transport for thermal powerhouses contributing Rs 78,790 crore.