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Union Budget 2023 for Railways
The Indian Railways would receive a capital allocation of Rs 2.40 lakh crore in the Union Budget 2023, according to Union Finance Minister Nirmala Sitharaman. The amount spent in Union Budget 2023 is around nine times higher than FY 2013–14. Nearly all governments up to this point have prioritised the railroads. The government did not submit a distinct railroad budget in 2016, but it remains a significant portion of the overall budget.
One of the greatest employers in the nation and one that requires a lot of labour is Indian Railway. Rail travel is economical and efficient in terms of energy. India’s growth will be accelerated by the capital investment of Rs 2.40 Lakh Cr for capacity building, which will improve passenger travel and freight traffic.
Prior to the budget release, the Economic Survey 2023 praised the Railways’ efforts to recover in both the passenger and freight segments following the Covid epidemic. Additionally, it had given the government credit for a significant rise in funds.
Union Budget 2023 Proposals for Railways
Under Union Budget 2023 for Railways, there is a total Capex of Rs 2.40 lakh crore has been earmarked. This is about nine times the amount spent in the fiscal year 2013-14.
- 2009–14: Average Annual Revenue of Rs. 10,623 Crore
- 2014–19: An average yearly budget of Rs. 24,347 crore
- 2022–23: An average yearly budget of Rs. 77,271 crore
- 2,40,000 Crore on an Annual Average in 2023–2024
The private investment in the railroads’ infrastructure will increase. The recently created Infrastructure Finance Secretariat will assist all players, including those in the government-dependent industries of roads, power, railroads, and urban infrastructure.
Due to the likelihood that train companies won’t raise freight or passenger ticket prices, the middle-class sector is anticipated to gain from the Union Budget 2023–24. The Make in India initiative and the significance of renewable energy is anticipated to be emphasised in the Railway Budget 2023.
The Indian Railways wants to emit no carbon dioxide by the year 2030. While saving money on foreign exchange, it aims to reduce its carbon footprint and reliance on imported gasoline.
Kavach Railway Protection System
The Kavach independent railway protection system was created by Indian Railways (Train Collision Avoidance System). The primary goal of this system will be to stop accidents brought on by human mistakes.
Kavach is being introduced by the Indian Railways in phases. It is now in use on the South Central Railway for 1,455 route km with 77 locomotives through December 23, 2022. Both the Delhi-Mumbai and Delhi-Howrah segments are undergoing kavach construction (3000 route km).
Vande Bharat Express
Speed and convenience have significantly increased with the launch of Vande Bharat Express. The train’s quick acceleration and deceleration may allow it to go at a top speed of 160–180 km/h. The journey time will be cut by 25% to 45% with these trains.
Read More: Union Budget 2023 for Agriculture Sector
Union Budget 2023 Highlights of Railway Budget
Internal revenue for the railways is projected to be Rs 2,40,000 crore in 2022–23, up 19% from the updated projections for 2021–22. Revenue is anticipated to be 7% below budget expectations in 2021–2022.
The expected amount of traffic-related revenue for 2022–2023 is Rs 2,39,600 crore, a 19% increase over the updated projections for 2021–2022 The expected freight income for 2022–23 is Rs 1,65,000 crore, a 14% increase over the updated forecasts for 2021–22. According to estimates, passenger revenue will total Rs 58,500 crore, up 32% from a low base in 2021–2022. (due to COVID-19).
The expected total revenue expenditure for the Railways for 2022–23 is Rs 2,34,640 crore, a 17% increase above the updated estimates for 2021–22. Revenue expenditure is anticipated to be 5% below budget projection in 2021–2022 The estimated capital expenditure for 2022–23 is Rs 2,45,800 crore, up 14% from the updated projections for 2021–22. The budget projection is only slightly higher than the updated estimates for capital expenditure in 2021–2022.
The operating ratio measures the proportion of operating costs to traffic-related revenue. A lower ratio indicates improved profitability and more resources available for capital expenditures. The operating ratio for the railways is predicted to reach 96.98% in 2022–2023. Compared to the operational ratio of 98.93% in 2021–2022, this would be an improvement (revised estimates).
In 2021–2022, an operating ratio of 96.15% was predicted at the budgetary stage.
Union Budget 2023 New Initiatives for Railway
For small farmers and small and medium-sized businesses, railroads will offer innovative goods and effective logistical services. In order to provide seamless solutions for the movement of packages, it will also take efforts toward the integration of the postal and railway networks.
- Over the following three years, 100 PM-GatiShakti Cargo Terminals for multimodal logistics facilities will be built.
- Priority will be given to facilitating multimodal connectivity between railway stations and mass urban transportation.
- Over the following three years, 400 new Vande Bharat trains will be produced.
- The indigenous Kavach technology will be implemented over 2,000 km of the network to increase capacity and ensure safety.
- To aid small enterprises and supply chains, the “One Station-One Product” idea will be made more common.
Union Budget 2023 for Railways UPSC
The government’s attempts to maintain microeconomic stability while concentrating on growth are consistent with the inclusive growth-oriented budget, which builds on the achievements of the previous year. The domestic economy will receive the essential boost from the growth in investments in capital infrastructure, such as “Green Growth” sustainable cities, railroads, and transportation infrastructure.
The Indian Railways, which efficiently and affordably connect villages, towns, and cities all over the nation, can be referred to as the lifeblood of India’s transportation network. All eyes are on the recommendations for the railways in the most recent budget, which is a widely anticipated event each year. These will serve as the model for future development initiatives aimed at improving passenger safety and comfort.