Indian Railways Burn Through Rs 2 Lakh Crore in 9 Months, Budget 2026 in Focus

Indian Railways has spent over Rs 2 lakh crore, or 80.54% of its annual budget, within nine months, a 6.5% increase from the previous year. The funds are primarily directed towards improving passenger experience and infrastructure.

If you feel trains are getting faster, stations cleaner and coaches more comfortable, the numbers now explain why. Indian Railways has already spent over Rs 2 lakh crore of its annual budget by December 2025, well before the financial year ends. The Ministry of Railways says this equals 80.54% of the total Rs 2.52 lakh crore allocated for the year, a jump of more than 6.5% compared to the same period last year.

Where the money is really going

This isn't just accounting. Most of the spending is being channelled into areas passengers directly feel:

• Safer tracks and signalling systems
• More trains and better capacity on busy routes
• Modern coaches, cleaner stations and upgraded amenities

Officials say the idea is simple: make rail travel safer, smoother and more reliable without pushing fares out of reach.

Safety upgrades take top priority

Safety continues to get the biggest share of funds. The Railways has already used 84% of the money set aside for safety works.

This includes faster installation of the Kavach automatic train protection system, track renewals and improved signalling to reduce accidents.

More trains, more tracks, less congestion

Capacity projects are also moving quickly. About Rs 76,048 crore has been spent from the Rs 1.09 lakh crore allocated for expanding the network.

This covers:

• New railway lines
• Doubling of busy routes
• Gauge conversions and metro rail projects in major cities

The aim is to reduce congestion and make long delays a thing of the past.

The decade that changed Indian Railways

Over the last ten years, the scale of change has been hard to miss:

• 164 Vande Bharat trains and 30 Amrit Bharat services are already running
• Over 99% of the broad-gauge network is electrified
• Stations are being redesigned with airport-style facilities
• The Vande Bharat Sleeper is set to redefine overnight travel

What once felt like slow, outdated transport is gradually turning into a modern travel experience.