Finance Minister Nirmala Sitharaman on Sunday allocated Rs 2,77,830 crore to the Ministry of Railways for capital expenditure in 2026–27, marking a 10.25% increase over last year’s Rs 2,52,000 crore allocation, the highest ever for the sector. An additional Rs 15,000 crore will come from Extra Budgetary Resources.

The funds will be used for new line construction, gauge conversion, doubling of tracks, and purchase of rolling stock. Specifically, Rs 36,721.55 crore is earmarked for new lines, Rs 4,600 crore for gauge conversion, Rs 37,750 crore for doubling, and Rs 52,108.73 crore for locomotives, wagons, and coaches. Signalling and telecom, including the Kavach automatic train protection system, will receive Rs 7,500 crore to expand coverage across the network.

The railways’ total projected earnings for FY 2026–27 are Rs 3,85,733.33 crore, with estimated expenditure of Rs 3,82,186.01 crore, leaving a surplus of Rs 3,547.32 crore. Pension payments remain the largest expenditure, rising from Rs 58,844.07 crore in 2024–25 to Rs 74,500 crore in 2026–27.