Indian Railways capex support seen steady in Budget 2026–27

Indian Railways capex support is expected to stay broadly steady in the Union Budget for 2026–27. Officials say infrastructure upgrades are progressing at the required pace, even as funding is likely to be redirected toward the bullet train project, track safety works, and decongestion efforts.

This is reported by the railway transport news portal Railway Supply.

Indian Railways capex support and the Budget 2026–27 outlook

The expectation in current discussions is that gross budgetary support (GBS) for capital expenditure is likely to remain close to current levels in 2026–27. For FY26, the GBS is pegged at ₹2.52 lakh crore. Alongside that, ₹10,000 crore was permitted for spending through Extra Budgetary Resources (EBR), which includes public private partnership projects (PPP).

As noted by ET, a senior official said Indian Railways has utilised 77% of the total GBS so far. The official added that the required pace of infrastructure upgrade is being maintained, and that ₹1.95 lakh crore has been spent by the national transporter on capital expenditure (capex) since April 1, 2025 onwards.

Electrification progress and what it means for spending

Another official argued that a significantly higher GBS may not be needed, pointing to how close electrification is to completion. Railway electrification is already at over 99.2% and is expected to shortly cover the entire stretch of the more than 69,400 route kilometre network.

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In Budget 2025–26, ₹6,150 crore was earmarked for track electrification projects. An official status report says 726 rkm tracks have been electrified till November-end in the current fiscal. The same official also linked electrification to diesel costs: with full coverage, the spend on diesel purchases is expected to fall further. Allocation under this head is already below ₹10,000 crore in fiscal 2025–26.

Where funds could be “rejigged”: bullet train, safety, decongestion?

Even if overall capex support holds, officials expect the mix of GBS spending to shift. “GBS allocation will be rejigged to reflect updated priorities,” the second official said, indicating higher allocation for the bullet train, track safety works, and decongestion efforts.

Budget 2025–26 had earmarked ₹19,000 crore for the National High Speed Rail Corporation Limited, which is developing the Mumbai-Ahmedabad High Speed Rail Corridor—also known as the bullet train project—an approach reflected in the NHSRCL project overview. For broader context on the corridor itself, see coverage by Railway Supply. Separately, total revenue and capital expenditure spent on safety works for fiscal 2025–26 is projected at ₹1.17 lakh crore.

Indian Railways meets its capex needs primarily through budgetary grants. This support largely covers new railway tracks, multi-tracking existing ones, and completing electrification of the broad-gauge network. It also finances procurement of rolling stock, including wagons, coaches, and locomotives.

Officials added that next fiscal’s budget is expected to increase funds for newer Vande Bharat and Amrit Bharat trains. The stated aim is to improve passenger experience while also raising train speed and punctuality. The Railway Board also expects potential savings on some revenue expenditure met out of its own freight earnings, which already subsidise passenger fares.

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