According to a report, the Center will increase the gross budget allocation for Indian Railways by 29% from INR 1.4 trillion to INR 1.8 trillion to fund infrastructure spending. The total capital expenditure (capex) for the railway ministry is expected to increase by 20% to INR 3 trillion in FY24, while the expenditure for FY23 was INR 2.45 trillion. “As the national carrier approaches a critical phase of building key infrastructure projects, a higher capex budget is urgently needed. Last year, the Center increased its gross support for the initiatives by a record amount. We expect it to rise even more,” said a former chairman of the railway board.

The Ministry has also asked the Ministry of Finance to prioritize long-term infrastructure projects, including high-speed rail, freight corridors and the financing of railway modernization. The Ahmedabad-Mumbai bullet train project will also receive a significant amount for FY24. The Vande Bharat Express between Howrah and New Jalpaiguri has recently opened in West Bengal under Prime Minister Narendra Modi. The Center invested "record amounts" in modernization. The upgrade of all stations, electrification and doubling of railway lines are also part of the modernization plans. The Department's gross budget support passed the $1 trillion threshold for the first time in FY22. The ministry's capital expenditure budget allocation in FY23 was the largest ever at INR 2.45 trillion.