Union Budget 2026: How much allocation did Railways get in the last 5 years?

As finance minister Nirmala Sitharaman prepares to present the Union Budget on February 1, expectations are high that the railways will once again remain a key pillar of the government’s capital expenditure push, aligned with the broader Viksit Bharat @2047 vision.The transport and logistics sector is seen as a critical growth engine, with Indian Railways playing a central role in connecting remote regions, enabling freight movement, and providing a sustainable and cost-effective mode of transport. Over the past five years, successive budgets have consistently prioritised rail infrastructure, even as challenges remain in speed, efficiency, and private sector participation.Railway allocations over the past five yearsRailway capital outlay has seen a steady upward trajectory since the pandemic years, reflecting the government’s focus on infrastructure-led growth.In the current fiscal year, Indian Railways’ planned capital expenditure includes Rs 50,903 crore for rolling stock and Rs 1.2 lakh crore for capacity enhancement, covering new lines, gauge conversion, track doubling, electrification, and metropolitan transport systems. Safety-related works received Rs 34,412 crore.PPP push and high-speed railPublic-private partnership (PPP) is emerging as a key focus area. Indian Railways had set a PPP capital expenditure target of Rs 10,000 crore for the current fiscal year, with nearly 90 percent achieved by mid-January.The government also allocated Rs 21,000 crore to the National High Speed Rail Corporation Ltd for FY25 to accelerate work on the bullet train project, with further funding expected as infrastructure development picks up pace.What Budget 2026 is expected to addressDespite sustained public investment, average train speeds have remained largely unchanged over the past decade, with freight trains operating at 20–25 kmph and mail or express passenger trains at 50–52 kmph. Rail freight’s share in overall cargo movement continues to remain below 30 percent, well short of the 45 percent target set for 2030.Industry experts expect the upcoming Budget to go beyond headline allocations and focus on structural reforms to unlock efficiency and private investment. These include:Growth backdropThe expectations from the rail budget come amid signs of economic moderation. India’s GDP growth is projected to slow to 6.4 percent in the current fiscal year from 8.2 percent in FY24, a four-year low. The government had allocated Rs 11.1 lakh crore for overall capital expenditure in FY25, up from Rs 10 lakh crore in the previous year, underlining the continued reliance on public spending to support growth.With FY26 expected to see a renewed push for PPP investments, the railways are likely to remain at the centre of the government’s infrastructure strategy, balancing capital creation with reforms aimed at efficiency, competitiveness, and long-term sustainability.