Union Budget 2026: Indian Railways Gets Allocated ₹2.93 Lakh Crore Capex, Up 5.4%

The Union Finance Minister announced a total allocation of ₹2,93,030 crore to Indian Railways for the financial year 2026‑27, marking a 5.4% increase over the previous year’s ₹2,78,030 crore. 

Union Budget 2026 Allocation to Indian Railways 

The headline figure of ₹2,93,030 crore covers capital and revenue items. New line projects receive ₹36,721.55 crore, up from ₹30,631.50 crore in the revised estimates for 2025‑26.  

Track‑doubling funding rises to ₹37,750 crore, compared with ₹29,026 crore earlier. Gauge conversion is set at ₹4,600 crore, slightly above ₹4,284 crore. 

Breakdown of Capital Outlay 

Rolling stock outlay is projected at ₹52,108.73 crore, an increase from ₹50,007.77 crore. Capital payments for leased assets jump to ₹39,650 crore from ₹28,157.13 crore.  

Track renewal allocation stands at ₹22,853 crore, marginally lower than ₹25,166.45 crore. Signalling and telecom receive ₹7,500 crore, up from ₹6,500 crore, while electrification projects are funded at ₹5,000 crore, up from ₹4,500 crore. 

Read More: Union Budget 2026: 7 High-Speed Rail Corridors, New Freight Corridor Announced by FM! 

Other Funding Areas 

Road safety works include ₹800 crore for level crossings and ₹8,225 crore for road over and under bridges. Customer amenities are budgeted at ₹11,971.82 crore, close to the revised estimate of ₹12,120.50 crore. Staff welfare receives ₹967.31 crore and training and human resource development is allocated ₹488.28 crore. Manufacturing suspense stands at ₹73,631.52 crore, higher than ₹64,905.68 crore.  

Transfers to safety and infrastructure funds remain unchanged: ₹45,000 crore to the Railway Safety Fund, ₹10,000 crore to the Rashtriya Rail Sanraksha Kosh and ₹15,000 crore to the Sovereign Green Fund. 

Conclusion 

The 2026‑27 budget provides Indian Railways with a total of ₹2,93,030 crore, reflecting over a 5% increase and emphasizing new lines, track doubling, rolling stock, and leased assets alongside continued support for signalling, electrification, safety and passenger amenities. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.