Gross budgetary allocation for railroads to increase by 29% in budget

04 Jan 2023 CW Team

According to a report, the Center is set to enhance the gross budgetary allocation for Indian Railways by 29%, from INR 1.4 trillion to INR 1.8 trillion, to fund infrastructure expenditures. The entire capital expenditure (capex) for the railway ministry is anticipated to increase 20% to INR 3 trillion in FY24, while the expenditure for FY23 was INR 2.45 trillion. “As the national transporter approaches a crucial stage of constructing important infrastructure projects, a higher capex budget is urgently required. Last year, the Center increased its gross funding assistance for the initiatives by a record amount. We anticipate it to rise even more,” said a former rail board chairman.

The ministry has also requested that the finance ministry give long-term infrastructure projects including high-speed trains, freight corridors, and railway modernization funding priority. The Ahmedabad-Mumbai bullet train project is also set to receive a sizeable amount of funding for FY24. The Vande Bharat Express between Howrah and New Jalpaiguri opened recently in West Bengal under the leadership of Prime Minister Narendra Modi. The Center was investing “record amounts” in modernisation. The upgrade of all stations, electrification, and doubling of train lines are also included in the modernisation plans. The ministry's gross budgetary support first surpassed the USD 1 trillion threshold in FY22. The ministry's capital expenditure budget allocation in FY23 was the biggest ever at INR 2.45 trillion.

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