Union Budget 2023: To support future infrastructure investments, the gross budgetary allocation of the Indian Railways is likely to increase by 29%, from Rs 1.4 trillion to Rs 1.8 trillion.
In FY24, the total capital expenditure (capex) of the Ministry of Railways is estimated to increase by 20% to Rs 3 trillion. The total expenditure in FY23 was Rs 2.45 trillion.
“As the national transporter reaches a crucial stage in the implementation of major infrastructure projects, higher capex allocation is the need of the hour.” Railway Board Chairman said.
Last year, the Center increased its gross budgetary support for the initiative by a record amount. The ministry has asked the finance ministry to prioritize funding of long-term infrastructure projects such as freight corridors, high-speed trains and train modernisation.
Also, there is a 71% increase in the data for the same time period as compared to last year. This time, it is estimated that senior citizens will get a reduction in rail fares after a substantial increase in rail earnings.
The Ahmedabad-Mumbai bullet train project is also likely to receive a significant chunk of funding for FY24.
Prime Minister Narendra Modi has said that the Center was investing in modernization at a “record level”. Modernization plans include introduction of Tejas Hum Safar, Vande Bharat and Vistadome coaches as well as upgrading all stations, electrifying them and doubling the number of rail lines.
The gross budgetary support of the ministry reached Rs 1 trillion for the first time in FY22. The ministry got Rs 2.45 lakh crore in FY2023, the highest ever allocation for capital expenditure.
questions to ask
Q1. What was the revenue expenditure of Railways in the budget 2022-23?
Rail transport is expected to spend Rs 2,34,640 crore on revenue in 2022-23, a 17% increase over the revised estimates for 2021-22.
Q2. Who is the railway minister of India?
Ashwini Vaishnavi is the Railway Minister. He stressed the importance of transforming the railways for the betterment of their future and supporting economic expansion.