The interim budget 2024-25 will likely allocate Rs 2.8-3 trillion for the Railways to keep its capex momentum intact, compared with Rs 2.4 trillion provided in the 2023-24 (Budget Estimate).
This would mean that the transporter which makes little operational surplus would not have to resort to market borrowings for the third year in a row. The likely increase of budget support by nearly a quarter in FY25, coming on the back of a 50% increase in FY24, also reflects the railways’ inability to generate enough resources from its own operations and the constraints faced by it in monetising its massive assets to fund new projects.
