Image Source : PTI IMAGE Railway Budget 2025 expectations
Railway Budget 2025: In the forthcoming Union Budget 2025, Indian Railways is anticipated to receive a 17 to 20 per cent increase in capital expenditure allocation for FY26. As per the experts, government will push for safety, modern trains, more usage of AI in Railways the coming fisacal year. Union Finance Minister Nirmala Sitharaman will present Budget 2025 on February 1.
Indian Railways being the country’s largest employer, also affects the daily lives of crore of people. Hence, all eyes remain on the Railway budget. In the last Union Budget presented by Sitharaman on July 23, 2024, Railways was allocated a record capital expenditure of Rs 2,62,200 crore.
Railway Budget 2025
As per the experts, there are high expectations for the railway budget to focus on modernising the trains and the railways network, improving services, and expanding the infrastructure. Government will also focus on introducing advanced technology and major investments in the technology sector.
Recently, Railway Minister Ashwini Vaishnaw introduced the Linen Inspection and Sorting Assistant (LISA), an AI-based system designed to automatically identify and segregate stained linens. It indicates government’s inclination towards implementing artificial intelligence (AI) to enhance the customer experience.
Hike in capital expenditure
Experts suggest that the Union Budget 2025 may allocate a 17-20 per cent hike in capital expenditure for Indian Railways. This increase could raise the total allocation to over Rs 3 lakh crore, compared to Rs 2.65 lakh crore in the current fiscal year.
Indian Railways spent Rs 1,92,446 crore (76 per cent of its Rs 2.65 lakh crore budget) in FY 2024-25. According to the Railway Ministry, the total capex for railways in the Budget Estimate 2024-25 is Rs 2,65,200 crore with Gross Budgetary Support of Rs 2,52,200 crores.
Out of it, Rs 1,92,446 crores have already been spent.
Expenditure report of Indian Railways till January 5, 2025, states heavy investment is made in capacity augmentation, a reality aiming to make rail travel a world class experience in India. It said the fruit of the consistent Capital Expenditure (Capex) for the last one decade are visible in the form of 136 Vande Bharat trains, about 97 percent electrification of broad gauge, laying of new lines, gauge conversion, doubling of tracks, traffic facilities work, investment in PSUs and metropolitan transport.
Budget 2025
The Budget Session of parliament is set to begin on January 31 and will be conducted in two parts. As per tradition, the session will begin with President Droupadi Murmu addressing a joint sitting of the Lok Sabha and Rajya Sabha. This will be followed by the presentation of the Economic Survey on the same day.
Union Finance Minister Nirmala Sitharaman is scheduled to present her eighth consecutive Union Budget on February 1, a significant event in the legislative calendar.
Also Read | Vande Bharat trains, Kavach, upgraded stations: What passengers expect from Railway Budget 2025
