Budget 2026 Update: The central government under Prime Minister Modi is expected to present the Union Budget on February 1, 2026, in just a few hours. Union Finance Minister Nirmala Sitharaman will present the budget, and preparations are underway at a rapid pace. This year’s budget is expected to be very significant. It will also be particularly important for the railway industry.
In the past few years, Indian Railways has received consistently higher allocations. This has given the department new momentum in terms of development. It is also expected that there will be an increase in the allocation for railways. According to experts, the total allocation for railways could reach between ₹2.65 lakh crore and ₹2.8 lakh crore. An increase of up to 8% compared to the previous budget may be announced.
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Focus on these facilities.
Nirmala Sitharaman is expected to make several major announcements in this budget. The budget may also reflect the vision of a developed India by 2047. The budget is likely to focus on safety, capacity expansion, Make in India initiatives, and modernisation. From the perspective of the railways, this budget may include several measures that will prove helpful in the growth of this sector in the coming years.
What are the expectations?
The central government is likely to provide substantial funding in the new budget for the large-scale expansion of the indigenous anti-collision system, Kavach. It is believed that, considering passenger safety, its rapid expansion will be implemented on the country’s busiest routes.
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It is also expected that 20 new sleeper Vande Bharat trains may be launched in the coming days to make long-distance rail travel more comfortable and luxurious. The focus will also be on station upgrades, the use of AI in signalling systems, smart monitoring, and increasing operational efficiency.
Senior citizens to get ticket concession.s
There is a strong demand to reinstate the senior citizen concession, which has been suspended since 2020 due to the COVID-19 pandemic. An announcement in the budget regarding this would provide relief to millions of elderly passengers. If this budget provides policy support and funding to take hydrogen-based train pilot projects to a commercial scale.