Union Budget 2026: Railways gets allocation of ₹2.81L crore
What's the story
In the Union Budget 2026, Finance Minister Nirmala Sitharaman has allocated ₹2.81 lakh crore to the Ministry of Railways. This is a significant increase from last year's allocation of ₹2.55 lakh crore for FY26, which included both capital expenditure and revenue support. The move highlights the government's continued commitment toward improving railway infrastructure and ensuring passenger safety across India.
Budget breakdown
Capex dominates railway budget
The bulk of the railway budget is allocated toward capital expenditure. In FY26, this stood at ₹2.52 lakh crore for projects like new lines, track doubling and electrification, station redevelopment, rolling stock procurement, and safety upgrades. For FY27, the capex has been set at ₹2.78 lakh crore as part of a sustained investment push to improve freight movement and reduce logistics costs across India.
Economic impact
Railways as a key driver of economic growth
The government views rail infrastructure as a key driver of economic growth and logistics efficiency. In recent years, the Railways has become one of the largest beneficiaries of government capital expenditure. This is due to the belief that high railway capex has strong multiplier effects on steel, cement, manufacturing, and employment opportunities across India.