The Indian Railways' capital expenditure spending has been left unchanged for the second year in a row at Rs 2.52 lakh crore for the financial year 2025-26, with thrust on safety and electrification.
Finance minister Nirmala Sitharaman presented the first full Budget of Modi 3.0 and her record eighth budget on February 1.
The ministry's internal and extra-budgetary resources (IEBR) have also remained unchanged at Rs 13,000 crore crore in 2025-26 from Rs 13,000 crore in 2024-25 and Rs 52,783 crore in 2023-24. IEBR includes funds raised through various financing sources, including that through IRFC for capex deployment.
The finance minister, as part of her budget speech, did not mention the total outlay for the railways, but the capex allocation reflected in the Budget documents that were released after her speech.
The annual expenditure will be funded through budgetary support of almost Rs 2.52 lakh crore in FY26, against a revised budgetary support of Rs 2.52 lakh crore for FY25, Budget documents show.
The money will be spent on building tracks, wagons, and trains, electrification, signalling and station development with focus on safety.
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The railways needs funds for a number of projects, including laying of rail tracks, gauge conversion, electrification, and signalling, apart from improvement in rolling stocks.
Railway stocks like IRCON, IRCTC, IRFC and others cracked over six percent after Finance Minister Nirmala Sitharaman concluded her presentation of Union Budget 2025-2026. The Budget didn’t mention any major reform for the sector, unlike the expectations set by analysts. Further, the Budget for the Railway sector has remained the same on-year.
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