The GBS for Indian Railways might remain broadly unchanged in the upcoming union budget 2026-27, as the current funds are sufficient for the infrastructure upgrade. The GBS or the gross budgetary support for FY26 stands at Rs 2.52 lakh crore, with an additional Rs 10,000 crore permitted for spending through Extra Budgetary Resources (EBR), including public-private partnership (PPP) projects. Officials said the railways has already utilised a substantial portion of the allocation. “Indian Railways has utilised 77% of total GBS till now. The required pace of infrastructure upgrade is being met,” a senior official told ET, adding that Rs 1.95 lakh crore has been spent on capital expenditure since April 1, this year.Another official said that a sharp increase in budgetary support may not be necessary, given that major network upgrades are nearing completion. “A significantly higher GBS may not be needed,” the official said, noting that railway electrification has crossed 99.2% and is close to covering the entire 69,400 route kilometre network. Indian railways uses budgetary grants to fund its capital expenditure, including the laying of new tracks, multi-tracking of existing routes, and completion of electrification across the broad-gauge network. The same allocation is also used for procuring rolling stock such as wagons, coaches, and locomotives. While overall GBS may remain steady, allocations within the rail budget are expected to be adjusted. “GBS allocation will be rejigged to reflect updated priorities,” the second official said, pointing to the possibility of higher funding for the bullet train project, track safety works, and decongestion initiatives.At the same time, next fiscal’s budget will allocate more funds for newer Vande Bharat and Amrit Bharat trains, aimed at improving passenger experience as well as enhancing train speed and punctuality.The railway board also expects some relief on the revenue expenditure front, which is currently met through freight earnings that subsidise passenger fares. Second official told ET that the electrifying the whole network will cut costs on diesel purchases, adding that allocations for have already fallen below Rs 10,000 crore in fiscal 2025-26.In Budget 2025-26, Rs 6,150 crore were set aside specifically for track electrification projects, according to ET. An official status report shows that 726 route kilometres were electrified until the end of November in the current fiscal.Meanwhile, Rs 19,000 crore were reserved for the National High Speed Rail Corporation Limited, which is developing the Mumbai-Ahmedabad High Speed Rail Corridor. Expenditure on safety-related works, including both revenue and capital spending, is projected at Rs 1.17 lakh crore in fiscal 2025-26.
