Indian Railways has been making a powerful move towards providing faster, safer, and ‘world class’ rail services at ‘affordable’ costs, thereby transforming itself into a future-ready organization. This dovetails with the overall vision of a ‘modern and integrated’ India, reflected in the heavy use of budgetary resources in FY 2025-26.
Effective Use of Budgetary Support:
As of the end of December 2025, the utilization of Gross Budgetary Support of ₹2,52,200 crore allotted to the Indian Railways stands at ₹2,03,138 crores, which constitutes 80.54% utilization. There has been an increase of 6.54 percentage points over the same period last year. Finances have been allotted largely to safety upgradation, augmentations, modernization, and passenger facilities.
The spending on safety-related works has been very high, with 84% of the allocated amount already utilised. The capacity enhancement schemes have also moved ahead, with ₹76,048 crore, or approximately 69% of the allocated amount of ₹1,09,238 crore, having been incurred. The spending on passenger amenities has reached the 80% level, with an expenditure of ₹9,575 crore up until December 2025.
Visible Impact of Sustaining Capital Expenditure:
Now, the benefits of the sustained capital outlay during the last ten years are also visible in the railway network. At present, the country has an operational 164 Vande Bharat express services, 30 Amrit Bharat express services, the Kavach automatic train protection system implemented, in addition to over 99 % electrification of the broad gauge network.
These have ensured increased speeds, safety, and passenger comfort standards, apart from retaining the costs within the affordability range of rail travel. The imminent launching of the Vande Bharat Sleeper train service promised to bring an overhaul in the train travel experience in the country.
On Track to Achieve FY26 Targets:
Overall, the expenditure trends reveal that the utilization plan for the Ministry of Railways’ GBS is progressing satisfactorily, with the execution of infrastructure projects at an acceleration pace. This indicates that the objectives set for FY 2025-26 will be attained.
