Union Budget 2026: Record Allocation for Railways Focuses on Infrastructure, Safety, and High-Speed Corridors

Key Points:

The Union Budget for the financial year 2026–27, presented by Finance Minister Nirmala Sitharaman in Parliament, outlines the sector-wise distribution of government spending across various areas. The Budget covers multiple sectors and highlights their respective allocations. One of the key focus areas is the Ministry of Railways, which includes detailed provisions for revenue expenditure, capital investment, financing sources, and major heads of spending.

The net budget for Railways, after recoveries and receipts, has increased to ₹2,81,377.32 crore in 2026–27. Of this, ₹3,547.32 crore is allocated for revenue expenditure, while a significant ₹2,77,830 crore is earmarked for capital expenditure, reflecting a strong emphasis on infrastructure development and capacity expansion.

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Working expenses remain substantial, particularly in staff and administrative costs. Staff expenditure alone is budgeted at ₹1,23,223.73 crore, while total working expenses stand at ₹1,25,922.63 crore. Other ordinary expenses include traction diesel and electricity, repairs and maintenance, lease payments to IRFC, pension-related provisions, and miscellaneous costs. Together, these amount to a net ordinary working expenditure of ₹1,73,577.37 crore in 2026–27.

On the capital front, nearly the entire outlay of ₹2,77,830 crore is directed towards commercial and strategic railway lines. Financing is mainly through gross budgetary support and internal and extra-budgetary resources, with ₹200 crore sourced from the Nirbhaya Fund—government initiative to finance projects that improve women’s safety. According to the Budget statement, capital expenditure for new lines, gauge conversion, track doubling, traffic facilities, and rolling stock will be met through these allocations.

Addressing the media, Railway Minister Ashwini Vaishnaw stated that safety remains the government’s top priority. He noted that accident rates have reduced by 95 per cent and said further improvements will be achieved through better maintenance of tracks, locomotives, wagons, and coaches, faster installation of the Kavach safety system, CCTV deployment, OHE upgrades, and station redevelopment.

In the Union Budget 2026–27, Finance Minister Sitharaman also announced the development of seven high-speed rail corridors across the country. These include Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi, and Varanasi–Siliguri. These corridors are intended to act as growth connectors and promote environmentally sustainable passenger transport.

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The Ahmedabad–Mumbai high-speed rail corridor, currently under construction, continues to make steady progress and is being closely monitored internationally. At present, India does not have any fully operational bullet train corridor.

Capital expenditure for Railways in FY27 has been pegged at ₹2.78 lakh crore, up from ₹2.52 lakh crore in FY26. These funds will be used for new rail lines, track doubling, electrification, station redevelopment, procurement of modern rolling stock, and safety upgrades. Over recent years, Railways has emerged as one of the largest recipients of government capital expenditure.

The Union Budget 2026–27 reflects the government’s broader “Infra First” strategy, with public capital expenditure raised to ₹12.2 lakh crore. The record allocation to Railways highlights its central role in strengthening national infrastructure, improving regional connectivity, and supporting long-term economic growth.

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