The government said that a capital outlay of Rs 2.4 lakh crore has been provided for the Railways, which is the highest ever allocation since 2013-14. file | Photo Credit: PTI
union budget A record budgetary allocation of Rs 2.40 lakh crore has been proposed for the Indian Railways on 1 February. Union Finance Minister Nirmala Sitharam said that the allocation was nine times more than the amount earmarked in the financial year 2013-14.
Roads and railways have been central to the government’s capital expenditure and the last few budgets have seen additional capital outlays.
Overall, the government proposes to increase capital expenditure outlay by 33% to ₹10 lakh crore in 2023-24, which would be 3.3% of GDP, Ms Sitharaman said.
“(This overall outlay) would be 3.3% of GDP, almost three times the outlay made in 2019-20. With substantial growth, it is central to the government’s efforts to harness growth potential and job creation, crowd in private investment and provide a cushion against global headwinds,” she said in her budget speech.
He also said that 100 important transport infrastructure projects have been identified for last and first-mile connectivity for coal, fertilizer and food grains sectors and will be taken up on priority basis with an investment of Rs 75,000 crore, involving private sector. 15,000 crores to Rs. Source.
With rising passenger expectations, the Railways is planning to refurbish over 1,000 coaches of flagship trains like Rajdhani, Shatabdi, Duronto, Humsafar and Tejas. The interiors of these coaches will be revamped to give a modern look and for the convenience of the passengers.
Railways were allocated Rs 1.4 lakh crore in the Union Budget for 2022-23, of which Rs. ₹1.37 lakh crore ₹3,267 lakh crore was earmarked for capital expenditure and for revenue expenditure.
Economic Survey on 31 January Railways has said that the next 10 years will see a higher level of capital expenditure in the railway sector as capacity addition has to be accelerated, so that it is ahead of demand by 2030.
As of 2014, the capex on the railways was barely ₹45,980 crore per annum and as a result, the railways were characterized by high levels of inefficiency and highly congested routes unable to meet the growing demand.
Presenting the Budget for 2023-24, Ms Sitharaman said the government hopes to build on the foundation of the previous budget and the blue print for India@100.
Dressed in a red sari with black and gold borders, Ms Sitharaman continued with the tradition set in 2019, keeping the budget speech in a ‘bahi-khata’, which she used after leaving the briefcase. He carried a digital tablet in a red ledger style pouch.
With the next Lok Sabha elections to be held in April-May of 2024, the 2023 budget will be the last full budget of the second term of the Modi government.
(with inputs from agencies)