Railway Budget 2024 Highlights: Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 today (February 1, 2024) at 11 am in Parliament. The government has announced the implementation of three major economic railway corridor programs aimed at enhancing logistics efficiency and reducing costs. These programs, identified under the PM Gati Shakti initiative, include energy, mineral, and cement corridors, port connectivity corridors, and high traffic density corridors. By decongesting high-traffic corridors, the operations of passenger trains are expected to improve, leading to increased safety and higher travel speeds for passengers.
Additionally, the conversion of forty thousand normal rail bogies to Vande Bharat standards is set to enhance passenger safety, convenience, and comfort. In the Union Budget 2023-24, the ministry had allocated a capital outlay of Rs 2.40 lakh crore for the Indian Railways. This was the highest-ever outlay and was almost nine times the outlay made in the Financial Year 2013-14.
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The Ministry of Railways has announced that 75% of the designated Capex budget has been utilized in the first nine months of the fiscal year. Indian Railways expended approximately Rs 1,95,929.97 crores during this period, which accounts for 75% of the total Capex budget of Rs 2.62 lakh crores. This substantial expenditure underscores a strong dedication to enhancing infrastructure and fostering development in the railway sector.
This interim budget marks the conclusion of the Modi government’s second term. It will address financial requirements until a new government is formed after the Lok Sabha polls. Subsequently, a full budget will be presented by the incoming government.
Indian Railways aims to address waitlisting issues with the introduction of Vande Bharat sleeper trains and Amrit Bharat Express trains. These trains will cater to both regular passengers and premium travelers for long-distance overnight journeys. The Budget speech this year may highlight these new additions, including the anticipated rollout of the Vande Bharat sleeper version in the upcoming months.
In the Railway Budget 2024, Railway Minister Ashwini Vaishnaw announced plans to introduce 3,000 new trains over the next 5 years. These additions aim to enhance connectivity and passenger amenities across the Indian Railways network. Additionally, the ongoing introduction of Vande Bharat trains for semi-high speed premium connectivity signifies a transformation in rail services, likely to be highlighted in the Interim Budget speech.
An important milestone in the railway sector has been the remarkable capital expenditure (Capex) by Indian Railways between April 1, 2023, and December 31, 2023, representing the highest-ever utilization of Capex within a nine-month period.
In the Railway Budget 2024, safety remains a paramount concern for Indian Railways, with a strong emphasis on implementing the indigenous Kavach system. Designed to prevent train accidents, this anti-train collision system is comparable to its European counterparts while providing a more cost-effective solution.
The upcoming Railway Budget for 2024 is anticipated to maintain its focus on the development of new railway lines, a key priority for Indian Railways. With existing network capacity constraints, the construction of new lines along heavily congested routes is crucial. This initiative aims to alleviate congestion and enhance the efficiency of train movement across the network.
Anticipations for the Railway Budget 2024 suggest that Finance Minister Nirmala Sitharaman could unveil a historic capital expenditure plan for Indian Railways in the upcoming Interim Budget. Experts speculate that Indian Railways might receive an allocation of approximately Rs 3 lakh crore for capital expenditure.
The railway sector is expected to receive increased capital allocation in the Union Budget 2024-25, reflecting the government’s emphasis on revitalizing railway assets and infrastructure development. Initiatives such as the introduction of new Vande Bharat trains, station redevelopment, and track expansion have not only spurred growth but also fueled a surge in railway shares.
In 2023, Indian Railways saw the introduction of numerous Vande Bharat trains on new routes, alongside the launch of Amrit Bharat and station redevelopment efforts.
A committee led by economist and NITI Aayog member Bibek Debroy proposed the phasing out of the British-era tradition of presenting a separate Railway Budget. The committee issued a whitepaper recommending the cessation of this practice. According to the committee’s report, the separate Railway Budget had become more of a ceremonial gesture, given the reduced size of the Railway Budget compared to the overall general budget. Thus, the committee concluded that there was no longer a need for a separate Railway Budget presentation.
The announcement on Thursday will be interim in nature, offering a preview of what can be anticipated for the official budget following the 2024 general elections, when the new government assumes office. This marks Sitharaman’s sixth consecutive budget as the finance minister in Prime Minister Narendra Modi‘s cabinet. It precedes pivotal national elections, where the current Prime Minister will vie for a third consecutive term in office.
During her Budget 2023 speech, Finance Minister Nirmala Sitharaman emphasized that the allocated capital expenditure (Capex) for Indian Railways in the current fiscal year surpasses nine times the amount allocated in the financial year 2013-14.
The Ministry of Railways announced that Indian Railways achieved a remarkable milestone by utilising a record capital expenditure (Capex) from April 1, 2023, to December 31, 2023. This period witnessed the highest-ever utilisation of Capex in nine months, with 75% of the allocated budget being utilized. The total expenditure incurred by Indian Railways during this timeframe stood at Rs 1,95,929.97 crores, representing approximately 75% of the overall Capex budget of Rs 2.62 lakh crores.
Before 2017, the Railway Budget was traditionally presented separately, a few days before the Union Budget. However, this tradition was discontinued when Finance Minister Arun Jaitley presented the Union Budget for FY 2017-18. Since then, successive governments have continued with this practice. The tradition of presenting the Railway Budget on a separate date originated with the British in 1924. At that time, a significant portion of government revenues and the nation’s Gross Domestic Product (GDP) relied heavily on the earnings generated by the Railways.
FM Nirmala Sitharaman is set to unveil Indian Railways’ Budget for 2024-25 during her Union Budget 2024 speech on February 1, 2024. The Railway Budget 2024 is eagerly awaited as it is expected to outline the future trajectory of the national transporter. Anticipated highlights include a record capital expenditure outlay, the introduction of new trains such as the Vande Bharat sleeper and Amrit Bharat Express, plans for additional Vande Bharat Express trains, and a renewed focus on safety with the implementation of the Kavach anti-collision train system.