Presenting the last full Union Budget of the Narendra Modi-led government before the 2024 general elections, Union Finance Minister Nirmala Sitharaman on Wednesday (February 1) announced a 75 percent hike in the outlay for the Railway Ministry, the highest-ever.

The Finance Minister has allocated Rs 2.40 lakh crore for the financial year 2023-24 compared to Rs 1.40 lakh crore in the last fiscal, an increase of Rs 1.03 lakh crore. Sitharaman said the outlay for the railways is nine times the amount provided in 2013-2014.

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Reimbursement of losses on operation of strategic lines has been kept at Rs 487.51 crore in BE 2023-24 veresus Rs 2,461.90 crore in RE 2022-23. An amount of Rs 780 crore has been provided in BE 2023-24 towards debt servicing of market borrowings for national projects.

The total outlay provided for capital expenditure in BE 2023-24 of Rs 2,60,200 crore includes Rs 2,40,000 crore from general revenues, Rs 200 crore from the Nirbhaya Fund, Rs 3,000 crore from internal resources and Rs 17,000 crore from internal and extra budgetary resources.

The total receipts of the railways, comprising revenues from passenger, goods, other coaching, sundry other heads and railway recruitment boards have been placed at Rs 2,65,000 crore in BE 2023-24 compared to Rs 2,42,892.77 crore of RE 2022-23.

Goods revenue in 2021-22 (actuals), BE 2022-23, RE 2022-23 and BE 2023-24 are Rs 1,41,096.39 crore, Rs 1,65,000 crore, Rs 1,65,000 crore and Rs 1,79,500 crore, respectively. Customer amenities include integration of metro station with railway station projects, costing Rs 500 crore in BE 2023-24.

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The allocation for rolling stock for the railways has almost doubled from Rs 15,157.86 crore in RE 2022-23 to Rs 37,581 crore in 2023-24.

Sitharaman said 100 critical transport infrastructure projects for last- and first-mile connectivity for coal, fertiliser and food grain sectors have been identified and will be taken up on a priority basis with an investment of Rs 75,000 crore, including Rs 15,000 crore from private sources.

In the Budget, the government proposed to manufacture 35 hydrogen fuel-based trains, 4,500 newly designed automobile carrier coaches with side entry, 5,000 LHB coaches and 58,000 wagons.

The Rs 2.40-lakh crore capital outlay for the railways is the highest-ever to boost the order book for railway contractors and wagon manufacturers.

FY22 Budget

In Budget 2022, the FM had allocated Rs 1,40,367.13 crore, Rs 20,311 crore more than the revised figures of the previous fiscal. The Budget has also earmarked Rs 38686.59 crore for investment in PSUs, joint ventures and special purpose vehicles.

Railways' expenditure during 2012-23 (in Rs thousand crore)

In today's Budget, the FM also allocated Rs 15,710.44 crore to the dedicated freight corridor (DFC), whose assets will be monetised by Indian Railways for operations and maintenance.

Capital Expenditure (in Rs crore)

A sum of Rs 13335.47 crore has been allocated for track renewal, Rs 2850 crore for gauge conversion and Rs 12,108 crore for doubling; in addition to Rs 25,243 crore has been allocated for new lines as well.

Revenue and how the railways earns its income

According to an analysis by the PRS Legislative Research, the railways' total internal revenue for 2022-23 is estimated at Rs 2,40,000 crore, an increase of 19 percent over the revised estimates of 2021-22. In 2021-22, total internal revenue was estimated to be 7 percent lower than the budget estimate.

Railways' expenditure is financed through its internal resources (freight and passenger revenue, and leasing of railway land), budgetary support from the central government, and extra-budgetary resources (primarily borrowings but also includes institutional financing, public-private partnerships, and foreign direct investment).

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Railways’ working expenses (salaries, staff amenities, pension, asset maintenance) are met through its internal resources. Capital expenditure (such as procurement of wagons and station redevelopment) is financed through internal resources, budgetary support from the central government, and extra-budgetary resources.

Source of funds - capital expenditure

The Indian Railways earns its internal revenue primarily from passenger and freight traffic. In 2022-23, it is estimated to earn 69 percent of its internal revenue from freight and 24 percent from passenger traffic. The remaining 7 percent will be earned from other miscellaneous sources such as parcel service, coaching receipts, and sale of platform tickets.

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First Published:Jan 30, 2023 7:48 PM IST