Finance Minister Nirmala Sitharaman has allocated a record budget of ₹2.4 lakh crore for the Railways in the Union Budget 2023-24. This marks the highest allocation for the railways in nearly a decade and is four times the budget from the previous year. The Finance Minister highlighted that this allocation is nine times the amount set aside in 2013-14. Additionally, a sum of ₹75,000 crore has been allocated for 100 critical transport infrastructure projects, which will also benefit the Railways, particularly in the freight business.
Railways has always been a priority sector for the government, and even though the separate Railway Budget was discontinued in 2016, it remains a crucial part of the overall budget. The Economic Survey before the budget presentation praised the Railways for their recovery in the passenger and freight segments post the Covid-19 pandemic and credited the government for the substantial increase in funds. Capital expenditure and investment in large infrastructure projects are among the government’s priorities. The budget was presented as the “first budget of Amrit Kaal,” a term used by PM Modi’s government to signify a brighter future as India celebrates 75 years of independence.
