Indian Railways' capital expenditure unchanged at ₹2.52 lakh crore
The government will provide budgetary support of around ₹2.52 lakh crore in FY26, unchanged from the revised allocation for FY25.
The Indian Railways’ capital expenditure for 2025-26 has been kept unchanged at ₹2.52 lakh crore for the second year in a row, with a focus on safety and electrification.
Union finance minister Nirmala Sitharaman on Saturday, February 1 presented the first full budget of Modi 3.0, marking her eighth budget, a record in itself.
The ministry’s internal and extra-budgetary resources (IEBR) have been retained at ₹13,000 crore for 2025-26, the same as the previous year, but significantly lower than the ₹52,783 crore allocated in 2023-24.
IEBR consists of funds sourced through different financing channels, including IRFC, for capital expenditure.
Although the finance minister did not disclose the total railway outlay during her speech, the budget documents released later revealed the capital allocation.
Budget papers show that the government will provide budgetary support of around ₹2.52 lakh crore in FY26, unchanged from the revised allocation for FY25.
This funding will be utilised for key infrastructure projects such as track expansion, procurement of rolling stock, electrification, signalling enhancements, and station modernisation, with safety remaining a core focus.
Significant financial resources are required for railway expansion, including new track installations, gauge conversion, electrification, and rolling stock improvements.
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Railway stocks, including IRCON, IRCTC, and IRFC, tumbled over six percent after Sitharaman’s Budget presentation.
Investors had expected major reforms in the sector, but with no new initiatives and an unchanged budget, market sentiment turned bearish.
Prime Minister Narendra Modi reacted to the Union Budget presented by finance minister Nirmala Sitharaman in Parliament today, saying the document is a milestone in India's development journey.
“Today is an important milestone in India's development journey. This is the budget of aspirations of 140 crore Indians. This is a budget that fulfils the dreams of every Indian. We have opened many sectors for the youth. The common citizen is going to drive the mission of Viksit Bharat,” he said in a video statement.
