Modi Government witnesses nearly 10x surge in railway allocation in Budget 2024, affirm Union Ministers

In a significant development, the Union Ministers have announced a substantial increase in the allocation to Railways in the budget for the financial year 2023-24 under the leadership of Prime Minister Modi. Finance Minister Nirmala Sitharaman disclosed that Rs 2.40 lakh crore has been allocated, reflecting a substantial increase from the previous fiscal year's allocation of Rs 1.40 lakh crore. This marks an impressive rise of Rs 1.03 lakh crore.

The surge in funds has already translated into a boost for railway contractors and wagon makers, who have reported a surge in orders. This unprecedented capital spending is the largest in the history of the Railways.

According to Finance Minister Sitharaman, this allocation is nine times greater than what was earmarked for the Railways in the 2013-2014 budget. Union Minister for Railways, Ashwini Vaishnaw, credited Prime Minister Modi's decision in 2014 to merge the railway budget with the general budget for this substantial increase in funding. He highlighted that this decision enabled the Railways to receive more funds, leading to remarkable achievements such as the addition of 5,200 km of tracks in the previous year, surpassing the entire railway network of Switzerland.

Minister Vaishnaw also revealed ongoing projects, mentioning that 57 stations within Karnataka are currently undergoing renovations. This substantial investment is not only aimed at covering operational costs but also at financing capital expenditures, including station renovations and wagon purchases.

The funds for the Railways are derived from various sources, including budgetary support from the Union government, extrabudgetary resources such as borrowings, institutional financing, public-private partnerships, and foreign direct investment, as well as internal resources generated through freight and passenger revenue, and leasing of railway land.

In summary, this significant increase in the allocation to Railways in the 2023-24 budget reflects the government's commitment to the development and modernization of the railway infrastructure in India. The impact is not only seen in the financial figures but also in tangible projects and improvements underway across the railway network.