Why did India merge the railway budget with the Union budget?

Business Jan 29, 2026

Back in 2017, India decided to combine its separate Railway Budget with the main Union Budget—a big change after 92 years.
The goal? To make budgeting simpler and give a clearer picture of government finances.
This move, guided by Finance Minister Arun Jaitley and based on expert advice, was all about cutting confusion and making things run smoother.

What changed after the merger?

Since then, planning for railways, highways, and waterways has become more coordinated.
The legislative process got easier too—now there's just one big Appropriation Bill instead of separate ones.
The Railways still operate independently but no longer have to pay dividends to the government.