New Delhi: The Narendra Modi-led NDA government is expected to increase the money allocation for the modernisation of Indian Railways in the Union Budget 2025-26 which is all set to be presented in Parliament on February 1, 2025. Finance Minister Nirmala Sitharaman will present her eight straight Budget this year, creating a history.
Reuters quoted sources saying that the Indian government will announce to enhance spending on the modernisation of its railways in the upcoming budget while marginally increasing allocations to road building.
The agency quoted the sources saying that after the COVID-19 pandemic, the Modi government at the Centre increased budgetary allocation for infrastructure, particularly on the road network, in an attempt to boost the economic growth, however, execution challenges could see the government shifting to the railways.
The agency quoted a government source assaying that the Railways’ budget could rise to between 2.9 trillion rupees and 3 trillion rupees ($33.5 billion-$34.7 billion) for the 2025/26 fiscal year. It was Rs 2.55 trillion rupees in 2024-25.
While presenting the Budget 2024, Union Minister Sitharaman presented the Union Budget 2024-25 and allocated record capex to Rs 2,62,200 crore for Railways. The Gross Budgetary support was Rs 2,52,200 crores for Railways during 2024-25.
Ever since PM Modi came to power in 2014, he has been implementing measures to modernise and build world class infrastructure for the Indian Railways. After the presentation of the Budget in July 2024, the Ministry of Railways informed that Railways commissioned 31,180 track kms In past 10 years. “The pace of track laying increased from 4 km per day in 2014-15 to 14.54 km per day in 2023-24.During 2014-2024, IR has electrified 41,655 Route Kms (RKMs) as compared to only 21,413 Route Kms till 2014,” it mentioned in the release.
The upcoming Indian Union Budget 2025-26, to be presented on February 1 2025, is expected to significantly increase funding for Indian Railways’ modernisation. Sources suggest a budget increase to between Rs 2.9 trillion and Rs 3 trillion, up from Rs 2.55 trillion in 2024-25. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
