Indian Railways Has Spent Nearly 80% of FY26 Budgetary Allocation: What is Next?

As per the Mint news reports, the Indian government is preparing to give the railways its highest-ever budget in 2026-27. This time, capital expenditure is expected to reach around ₹2.76 trillion, marking a 12% increase from the previous year.

Indian Railways Has Spent Nearly 78% of FY26 Budget Already 

The construction of new tracks, modern locomotives and coaches, electrification of railway stations, and development of new metro projects have led to an increased need for higher budgets. The Mint has reported that nearly 78% of the budgetary allocation has already been exhuasted by the Railway Ministry in mid-November on these projects alone. Hence, there is more need of capital expenditure.

What Are the Future Plans of Indian Railways?

 The government plans to introduce 300-400 Vande Bharat trains, including sleeper versions in the coming years. It will also procure 7,000-8,000 new trains over the next decade, and construct around 50,000 km of new tracks. The safety budget is also expected to double to work towards the goal of zero accidents, as per the Mint.

Freight and Passenger Focus

A higher budget will allow the railways to maintain current passenger fares and freight rates while potentially reclassifying freight categories, as per Mint news reports. Completion of dedicated freight corridors, particularly the Western and Eastern corridors, is expected to significantly increase freight capacity, boosting core revenue for the railways.

Funding Strategy

The railways’ capital expenditure for 2026-27 is likely to come from a combination of budgetary support and market borrowings. Using a mix of funding sources can mobilise larger funds, ensure efficient use of money, and separate capital investment from routine operational spending, as per Mint news reports.

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Conclusion

The 2026-27 budget marks a significant step in the long-term modernisation of Indian Railways. With a record allocation, improved safety measures, and expanded infrastructure, the railways are poised to offer faster, safer, and more efficient services to passengers and freight operators, as per Mint news reports. 

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