Railways Receive Record Allocation in FY25 Budget with Focus on Safety and Expansion

The Ministry of Railways receives a record ₹2.55 lakh crore allocation in FY25, emphasizing safety, infrastructure, and job creation, despite a slight increase in the operating ratio.

Key Points

• Record ₹2.55 lakh crore allocation for the Ministry of Railways in FY25.
• Focus on safety, infrastructure, and job creation.
• Slight increase in operating ratio to 98.22% from 98.10% in FY23.
• Capital expenditure includes funds from general revenues, Nirbhaya Fund, internal resources, and extra budgetary resources.
• Major projects include Kavach installation, new rolling stock, and connectivity improvements.

The Ministry of Railways has received a record allocation of over ₹2.55 lakh crore for the financial year 2024-25, marking a significant 5.85% increase from the previous year’s ₹2.41 lakh crore. According to the Union Budget documents, this substantial allocation aims to boost capital expenditure on assets, acquisitions, construction, and replacements.

The total outlay for capital expenditure comprises ₹2.52 lakh crore from general revenues, ₹200 crore from the Nirbhaya Fund, ₹3,000 crore from internal resources, and ₹10,000 crore from extra budgetary resources, amounting to ₹2.65 lakh crore. This marks a dramatic rise from 2014 when only ₹35,000 crore was allocated for railway capital expenditure. “Compared to that, the current Budget estimates are a record allocation for capital expenditure for railways. And a majority of this fund will be spent on ensuring safety works,” stated Railway Minister Ashwini Vaishnaw.

Despite the significant budget boost, the actual operating ratio for the railways has increased slightly to 98.22% for FY25 from 98.10% for FY23. The operating ratio, which indicates the amount spent to earn every hundred rupees, reflects the operational efficiency of the railways.

Minister Vaishnaw emphasized that the top priorities for the railways are safety, passenger comfort, and capacity and infrastructure enhancements. A key initiative is the rapid installation of the Kavach 4.0 Automatic Train Protection system. “Kavach consists of multiple components like hardware, software, optical fibre. And India has a diverse network of railway systems, so the challenge is to combine all networks for deployment of Kavach,” Vaishnaw explained.

The budget also highlights a significant focus on employment generation within the railways. Vaishnaw announced that 38,000 to 40,000 new jobs are being created, building on the five lakh jobs generated during Prime Minister Narendra Modi’s first two terms.

In terms of infrastructure projects, there is a major focus on new rolling stock and the development of Vande Bharat, Amrit Bharat trains, and Vande Metro. Connectivity improvements are also on the agenda, including linking all capitals of the Northeastern states and enhancing connectivity with Kashmir.

This record allocation and strategic focus on safety, modernization, and job creation underline the government’s commitment to transforming India’s railway network into a safer, more efficient, and expansive transportation system.