Indian Railways Utilizes 30% of Annual Capex Budget in April-May 2026

Indian Railways has utilized nearly one-third of its annual capital expenditure budget within the first two months of the 2026-27 financial year. Official estimates indicate that spending exceeded ₹84,000 crore by the end of May 2026, amounting to approximately 30% of the year’s target.

For the fiscal year 2026-27, the national transporter’s gross budgetary support allocation stands at ₹2,81,030 crore. Additionally, ₹12,000 crore has been earmarked from extra budgetary resources, bringing the total capital expenditure budget to ₹2,93,030 crore.

A senior railway official confirmed that the capital expenditure spend is on track, with a third of the annual goal already achieved in the initial months. The focus continues to be on enhancing safety through the deployment of advanced signalling and train protection technologies. The safety-related capex for 2026-27 is projected at ₹55,170 crore, an increase from ₹53,398 crore in the revised budget for 2025-26.

In the previous year, the railways fully utilized the ₹2,78,000 crore allocated for capital expenditure in 2025-26. Significant portions of the capex are dedicated to track-related works such as new line construction, gauge conversion, and doubling of lines. These areas are expected to see investments exceeding ₹79,000 crore in 2026-27, up from ₹64,000 crore in the preceding year.