The Union Budget 2026–27 has set a historic benchmark for Indian Railways with a record capital expenditure allocation of ₹2,93,030 crore. Presented on February 1, this financial plan focuses heavily on safety upgrades, capacity expansion, and modernizing the rail network across all states. The Ministry of Railways confirmed that this is the highest-ever funding provided to the sector, marking a 5.4% increase from the previous year.
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State-Wise Budget Allocation List
The Ministry has released the detailed funding distribution for various states to support ongoing infrastructure projects and new developments. Maharashtra and Uttar Pradesh have received the largest shares to boost connectivity in their respective regions.
| State | Allocation (2026-27) |
|---|---|
| Maharashtra | ₹23,926 cr |
| Uttar Pradesh | ₹20,012 cr |
| Gujarat | ₹17,366 cr |
| Madhya Pradesh | ₹15,188 cr |
| West Bengal | ₹14,205 cr |
| Assam & NE Region | ₹11,486 cr |
| Odisha | ₹10,928 cr |
| Bihar | ₹10,379 cr |
| Rajasthan | ₹10,228 cr |
| Andhra Pradesh | ₹10,134 cr |
| Karnataka | ₹7,748 cr |
| Tamil Nadu | ₹7,611 cr |
| Jharkhand | ₹7,536 cr |
| Chhattisgarh | ₹7,470 cr |
| Punjab | ₹5,673 cr |
| Telangana | ₹5,454 cr |
| Uttarakhand | ₹4,769 cr |
| Kerala | ₹3,795 cr |
| Haryana | ₹3,566 cr |
| Himachal Pradesh | ₹2,911 cr |
| Delhi | ₹2,711 cr |
| Jammu & Kashmir | ₹1,086 cr |
| Goa | ₹515 cr |
New Projects and Safety Upgrades
The government has officially approved seven new high-speed corridors aimed at reducing travel time between major cities. These include the Mumbai–Pune route with a target time of 48 minutes and the Delhi–Varanasi corridor targeting 3 hours and 50 minutes. Additionally, a strategic 40-km underground rail corridor will be constructed to ensure secure, all-weather connectivity between the North-East and the rest of India.
Safety remains a top priority with ₹1,20,389 crore set aside specifically for track renewals and the “Kavach” automatic train protection system. The Ministry has fast-tracked tenders for Kavach 5.0, aiming to cover 40,000 km of tracks by 2030 to prevent accidents and enhance passenger security.