Indian Railways Used Over 80% of Total Budget to ₹2.03 Lakh Crore Till 2025

Indian Railways is moving decisively towards delivering faster, safer and world-class rail services at affordable costs by reshaping itself into a future-ready organisation. This transformation aligns with the broader vision of a modern and well-connected India and is reflected in the strong utilisation of budgetary resources during FY 2025-26.

Strong Utilisation of Budgetary Support

As of end-December 2025, Indian Railways has utilised ₹2,03,138 crore, or 80.54%, of the total Gross Budgetary Support (GBS) allocation of ₹2,52,200 crore. This represents a 6.54 percentage-point increase compared with utilisation during the same period last year. Spending has been primarily directed towards safety enhancement, capacity expansion, infrastructure modernisation and improved passenger amenities.

Expenditure on safety-related works has been particularly strong, with 84 % of the allocated funds already utilised. Capacity augmentation projects have also progressed steadily, with ₹76,048 crore, around 69 % of the ₹1,09,238 crore allocation spent so far. Investment in passenger amenities has reached 80% utilisation, with ₹9,575 crore expended up to December 2025.

Visible Impact of Sustained Capital Expenditure

The benefits of consistent capital expenditure over the past decade are now clearly evident across the railway network. Indian Railways currently operates 164 Vande Bharat train services and 30 Amrit Bharat services, has implemented the Kavach automatic train protection system, and achieved over 99 % electrification of its broad-gauge network. 

These initiatives have significantly enhanced operational speed, safety standards and passenger comfort, while maintaining the affordability of rail travel. The upcoming inauguration of the Vande Bharat Sleeper train is expected to further transform long-distance rail journeys across the country.

Also Read: Union Budget 2026 To Be Presented on February 1

On Track to Achieve FY26 Targets

Overall, the expenditure trends indicate that the Ministry of Railways’ GBS utilisation plan is progressing as intended, with infrastructure projects being executed at an accelerated pace. This momentum suggests that the targets set for FY 2025-26 are likely to be fully achieved.

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