The budget allocation for the Indian Railways is likely to
hit a record high as the government is planning to raise capital expenditure by
up to 20% of the previous year’s budget projections, according to a report by

In FY22, the government set a new high
by allocating Rs 2.15 lakh crore for the Railways. Of the total allocation, Rs
7,500 crore came from internal resources, Rs 1 lakh crore from extra-budgetary
resources, and another Rs 1.07 lakh crore came from gross budgetary support.

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Gross budgetary support refers to the amount the
government allocates in the general budget for the Indian Railways.

The Centre is planning a major makeover
for the national transporter, this year the budget allocation for the railways
is expected to be around Rs 2.5 lakh crore, reported Mint citing two sources.
The proposed Rs 2.5 lakh crore expenditure plan may include Rs 1.25 lakh crore
gross budgetary support. Earnings from railway PSUs can also increase the
extra-budgetary resources of the Indian Railways, said the report.

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Through this budget, the Railway
Ministry will be able to fund long-term infrastructure projects, freight
corridors, and modernize and add speedier trains to its fleet. It will also
help in electrification work on all routes and overhaul of the signalling

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The government has also set a goal to
become the first green railway in the world with net-zero emissions by 2030. To
achieve the target, the national transporter aims to achieve 100%
electrification of railway routes by 2023.

In 2020-21, more than 6,015 km had been
electrified, breaking the previous record of 5,276 km in 2018-19, reported The
New Indian Express, citing a senior official.

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Indian Railways needs a higher capital
expenditure allocation as its key infrastructure projects reach critical stages
of implementation, Mint quoted a former Railway Board chairman as saying.

The former railway official added that the
government supported it with a record increase in gross budgetary support last
year and the expectation is that this level would be surpassed in FY23.

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According to the Mint report, a portion of the higher
gross budgetary support may be allocated to the Ahmedabad-Mumbai bullet train
project. Work on the project is running at full speed for the Gujarat leg. The
government is also planning a high-speed train on the Delhi-Varanasi route.