The GBS for Indian Railways could remain largely unchanged in the upcoming union budget 2026-27 as current allocations are sufficient for infrastructure modernization. The GBS or Gross Budgetary Support for FY26 stands at Rs 2.52 lakh crore, with an additional Rs 10,000 crore permitted for expenditure through Extra Budgetary Resources (EBR), including public-private partnership (PPP) projects. Officials said the railway has already exhausted a significant portion of the allocation. “Indian Railways has utilized 77% of the total GBS so far. The required pace of infrastructure modernization is being maintained,” 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 a large increase in budget support may not be necessary as major network upgrades are nearing completion. “Much higher GBS may not be required,” the official said, noting that railway electrification has reached 99.2%, covering almost the entire network of 69,400 kilometers. The Indian Railways uses budgetary allocations to finance its capital expenditure, including laying new tracks, multi-tracking existing lines and completing electrification of the broad gauge network. The same allocation is also used to procure rolling stock such as wagons, coaches and locomotives. While overall GBS are expected to remain stable, allocations within the railway budget are expected to be adjusted. “The GBS allocation will be adjusted to reflect updated priorities,” the second official said, pointing to the possibility of increased funding for the high-speed train project, track safety works and relief initiatives.At the same time, the budget for the next fiscal will allocate more funds for newer Vande Bharat and Amrit Bharat trains to improve passenger experience and increase speed and punctuality of trains.The railway board also expects some relief in revenue expenditure, which is currently covered by freight revenue that subsidizes passenger fares. The second official told ET that electrification of the entire network will reduce the cost of diesel purchases, adding that allocations for the same have already come down below Rs 10,000 crore in the financial year 2025-26.In the Budget 2025-26, 6,150 crore has been earmarked specifically for track electrification projects, according to ET. According to an official status report, 726 kilometers of routes were electrified in the current financial year up to the end of November.Meanwhile, Rs 19,000 crore has been 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 revenue and capital expenditure, is expected to be Rs 117 crore in the financial year 2025-26.
