Railway Budget Highlights
Railway Budget Highlights
Overview
Since 2017 the Railway Budget has been merged with the Union Budget, ending 92 years of stand-alone presentation. The Ministry of Railways now submits its Annual Financial Statement to Parliament as part of the Union Budget, with a separate “Budget for Railways” document released later by the Ministry.
Key Facts & Figures
| Fact | Detail |
|---|---|
| First separate Railway Budget | 1924-25 (Sir William Acworth Committee) |
| Last separate Railway Budget | 2016-17 (presented on 25 Feb 2016 by Suresh Prabhakar Prabhu) |
| Budget merger announced | 21 Sept 2016 (NITI Aayog recommendation) |
| FY 2025-26 Gross Budgetary Support (GBS) | ₹2.65 lakh crore (highest ever) |
| FY 2025-26 total capital outlay | ₹3.10 lakh crore |
| Operating Ratio (FY 24 RE) | 96.8 % |
| Operating Ratio (FY 25 BE) | 94.5 % |
| Freight loading target (FY 25) | 1,580 MT |
| Passenger earnings target (FY 25) | ₹70,000 crore |
| New Vande Bharat trains (FY 25) | 150 (3rd-gen, 320 km/h version) |
| Route-km sanctioned to New Line/Doubling | 7,000 km |
| 100 % electrification target | 31 Dec 2024 (achieved 95 % till Mar 2025) |
| Station redevelopment under Amrit Bharat | 1,275 stations (500 in FY 25) |
| Kavach (ATP) coverage (FY 25) | 6,000 km (2,500 route-km added) |
| RRTS operational section (FY 25) | Delhi – Meerut (82 km) |
| Dedicated Freight Corridor (DFC) completion | 100 % (EW & WW) by Mar 2025 |
Important Points
- Operating Ratio = Working Expenses / Gross Earnings (lower is better).
- Capital outlay is financed through GBS, internal resources, IRFC borrowings, PPP & extra-budgetary resources.
- Revenue from freight subsidises passenger fares; freight earns ~65 % of total revenue.
- “Amrit Bharat Station Scheme” replaces 24-yr old “Model Station” scheme.
- “PM Gati Shakti” multi-modal integration is the umbrella plan for infra spend.
- Vande Bharat sleeper & Vande Metro variants introduced in FY 25.
- 100 % electrification saves ₹18,000 crore/yr in fuel bill.
- Kavach (indigenous ATP) mandatory on Golden Quadrilateral & entire BG network by 2026.
- Rail Land Development Corporation (RLDA) monetises 3,000 acres for non-fare revenue.
- “One Station-One Product” (OSOP) expanded to 500 stations for MSME sales.
- Railways set to become net-zero carbon emitter by 2030 (only global major to target pre-2050).
- Highest ever capex in FY 25 is 9 times the 2014 level.
Frequently Asked in Exams
- Year of merger of Railway Budget with Union Budget – 2017-18.
- Who presents the Railway financial statement now – Union Finance Minister (Railway Minister only issues detailed ‘Pink Book’).
- Colour of the traditional Railway Budget document – Pink (hence “Pink Book”).
- Largest source of IR revenue – Freight (coal & steel lead).
- Full form of ATP being rolled out by IR – Automatic Train Protection (indigenous system named “Kavach”).
Practice MCQs
Question:01 The last separate Railway Budget of India was presented in which financial year?
A) 2014-15
B) 2015-16
C) 2016-17
D) 2017-18
Show Answer
Correct Answer: C
Explanation: The practice of a separate Railway Budget was discontinued after 2016-17; from 2017-18 onwards, the Railways’ finances were merged with the Union Budget.
Question:02 What is the Gross Budgetary Support allotted to Railways in Union Budget 2025-26?
A) ₹2.55 lakh crore
B) ₹2.65 lakh crore
C) ₹2.75 lakh crore
D) ₹2.85 lakh crore
Show Answer
Correct Answer: B
Explanation: The Union Budget 2025-26 has allocated a Gross Budgetary Support of ₹2.65 lakh crore to the Indian Railways to fund infrastructure expansion, safety upgrades, and capacity enhancement projects.
Question:03 Which committee recommended the separation of the Railway Budget from the General Budget in 1924–25?
A) Lee Commission
B) Acworth Committee
C) Hilton Young Commission
D) Butler Committee
Show Answer
Correct Answer: B
Explanation: The Acworth Committee (1920–21), headed by Sir William Acworth, recommended the separation of Indian Railways’ finances from the General Budget, leading to the establishment of a separate Railway Budget in 1924–25.
Question:04 The indigenous Automatic Train Protection system of Indian Railways is called:
A) Raksha
B) Kavach
C) Suraksha
D) Guard
Show Answer
Correct Answer: B
Explanation: Kavach is the indigenously developed ATP system by Indian Railways to prevent train collisions.
Question:05 100 % electrification of BG routes was targeted to be achieved on:
A) 31 Dec 2023
B) 31 Dec 2024
C) 31 Mar 2025
D) 15 Aug 2025
Show Answer
Correct Answer: B
Explanation: Indian Railways achieved its target of 100 % electrification of Broad-Gauge routes on 31 December 2024.
Question:06 Operating Ratio of Indian Railways for FY 25 BE is:
A) 92.3 %
B) 93.8 %
C) 94.5 %
D) 95.1 %
Show Answer
Correct Answer: C
Explanation: Indian Railways Budget Estimates for FY 2025-26 peg the Operating Ratio at 94.5 %, indicating that 94.5 paise of every rupee earned is spent on working expenses.
Question:07 The revenue-earning segment that cross-subsidises passenger fares in Indian Railways is:
A) Suburban services
B) Freight traffic
C) Parcel services
D) Ticketing penalties
Show Answer
Correct Answer: B
Explanation: Freight traffic is the profitable segment of Indian Railways whose surplus revenue is used to offset the losses incurred on passenger operations, thereby cross-subsidising passenger fares.
Question:08 The colour of the traditional Railway Budget document is:
A) White
B) Green
C) Pink
D) Blue
Show Answer
Correct Answer: C
Explanation: The traditional Railway Budget document is printed on distinctive pink paper, a practice dating back to the British era to distinguish it from the Union Budget’s white paper.
Question:09 How many new Vande Bharat trains are planned to be rolled out in FY 25?
A) 100
B) 125
C) 150
D) 175
Show Answer
Correct Answer: C
Explanation: The Ministry of Railways has targeted the introduction of 150 new Vande Bharat train sets during the financial year 2025-26 to expand semi-high-speed services across the country.
Question:10 The umbrella multi-modal infrastructure plan under which Railway capex is now routed is:
A) Bharatmala Pariyojana
B) PM Gati Shakti
C) Sagarmala Programme
D) Make in India
Show Answer
Correct Answer: B
Explanation: PM Gati Shakti is the integrated multimodal infrastructure master plan launched in 2021 that now channels all new Railway capital expenditure to ensure seamless connectivity and logistics efficiency.
BETA
