Railway Budget 2026 allocation: The Union Budget 2026–2027 gives Indian Railways its largest-ever capital expenditure allocation of Rs 2,93,030 crore. A total of Rs 2,78,030 crore was spent on it. Railway Minister Ashwini Vaishnaw stated that the emphasis would continue to be on bolstering railway infrastructure, increasing capacity, and enhancing passenger safety during a press conference held at Rail Bhawan on Sunday, February 1.
Allocation of the Railway Budget for 2026
With almost Rs 1.20 lakh crore set aside for safety-related expenses, the Union Minister stated that safety is the first priority. Additionally, he emphasized that consistent expenditures over time have already produced results, with a nearly 95% decrease in railroad accidents.

According to the minister, the government is currently stepping up its efforts to improve safety results. "Improved track, locomotive, wagon, and coach maintenance, quick deployment of the Kavach automatic train protection system, CCTV camera installation, upgraded overhead electrical (OHE) systems, station redevelopment, and better customer service and passenger facilities are the focus areas," he stated.
Vaishnaw emphasized significant infrastructure accomplishments during the conference, including as the building of 35,000 km of new lines, the electrification of 47,000 km, and the electrification of more than 99.5% of the broad-gauge (BG) network.

Highlights of the Railway Budget 2026: How much capital expenditure is set aside for different projects?
Budget 2026–2027: Capital Expenditure Allocation for Indian Railways
Capex Allocation for Indian Railways Projects Budget 2026–2027 (in Rs crore)
Safety-Related Projects 1,20,389
4,600 Gauge Conversion
52,108.73 Rolling Stock
36721.55 New Lines Doubling 37750.00
Computerization 492.64
Track Renewals 22853.00 Telecom and Signaling 7500.00
5000.00 for electrification projects; 2557.96 for bridge, tunnel, and approach construction; 7897.27 for traffic facilities, including yard remodeling; and 2886.00 for metropolitan transportation projects.

Vaishnaw went on to say that rail transport is almost 95% less polluting than road transport, which is in line with the Prime Minister's vision of railroads as a green form of mass transit and the Government's environmental and climate obligations.

"The record allocation strengthens Indian Railways' position as the foundation of inclusive connectivity, economic expansion, and national development." With the initiatives announced in Union Budget 2026–27, Indian Railways is prepared to play a crucial role in nation-building by delivering speedier connectivity, efficient logistics and resilient infrastructure in keeping with the vision of Viksit Bharat,” the Ministry of Railways said in a statement.