Transition of Railway Budget Presentation
Till a few years ago, the railway budget in India was presented separately from the general budget. This tradition lasted for 92 years until it was changed in 2017 when the late BJP leader Arun Jaitley, serving as the Finance Minister, included the railway budget within the Union Budget for the financial year 2017-18. As a result, this will mark the ninth time that the railway budget will be presented as part of the general budget. In the context of the Indian government’s budget, a significant portion is allocated for passenger fare subsidies to support the extensive railway network.
Passenger Growth and Government Subsidies
Indian Railways serves as the largest public transport system in the country, achieving a remarkable milestone last year when over 3 crore passengers traveled in a single day. According to the Economic Survey presented in Parliament, a total of 673 crore passengers utilized the rail system during the year 2023-24, reflecting a 5.2% increase from the previous financial year. The Indian government, recognizing the importance of making rail travel accessible, provides substantial subsidies, amounting to an annual expenditure of Rs 56,993 crore. This subsidy effectively lowers the ticket price for passengers, with an estimated 46% discount on fares.
Categories Eligible for Concessions
Various categories of passengers benefit from fare concessions provided by Indian Railways. Senior citizens above 60 years receive a 40% concession on non-premium trains, while women over 58 years enjoy a 50% discount. Students are offered reduced fares on seasonal tickets for travel to and from educational institutions. Additionally, differently-abled individuals receive concessions ranging from 50% to 75%, which also extends to their attendants. Exemptions are also available for patients suffering from serious illnesses and their accompanying attendants, as well as for martyr widows, recognized journalists, and railway employees across different categories.
Important Information Organised For You.
| Information | Details |
|---|---|
| Railway Budget History | Included in the Union Budget since FY 2017-18; 9th time presented as part of general budget. |
| Tradition Change | Modi government ended the 92-year-old separate railway budget tradition in 2017. |
| Passenger Journey Record | On November 4, 2024, over 3 crore passengers traveled by trains in a day. |
| Total Passengers 2023-24 | 673 crore passengers, a 5.2% increase from the previous financial year. |
| Government Subsidy | Annual subsidy of Rs 56,993 crore; 46% discount on ticket prices. |
| Union Budget Allocation 2023-24 | Rs 59,837 crore allocated to Indian Railways for rent exemption. |
| Categories for Ticket Discounts |
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