
## Demand For Grants 2023-24 Analysis Railways

The Railways finances were presented on February 1, 2023, by the Finance Minister Ms. Nirmala Sitharaman along with the Union Budget 2023-24. Indian Railways is a commercial undertaking of the central government.1  The Ministry of Railways administers Indian Railways and policy formation through the Railway Board. Expenditure of Railways is financed through: (i) its internal resources (mainly freight and passenger revenue), (ii) budgetary support from the central government, and (iii) extra-budgetary resources (primarily borrowings but also includes institutional financing and public-private partnerships).  Railways' working expenses (salaries, pension, and asset maintenance) are met through its internal resources.  Railways generate some surplus, which is not enough to cover its capital expenditure plans (such as construction of lines and procurement of wagons).  Capital expenditure is supported by the grant from the central government and extra-budgetary resources. This note looks at the proposed expenditure of Railways for 2023-24, and the state of its finances over the last few years. 

## Highlights

- 
Revenue:  Railways' internal revenue for 
2023-24 is estimated at Rs 2,65,000 crore, an increase of 9% over the revised estimates of 2022-23.  In 2022-23, revenue is estimated to be 1% higher than the budget estimate (see Table 1 on next page). 
- 
Traffic revenue:  In 2023-24, traffic revenue 
is estimated to be Rs 2,64,600 crore, comprising 99.8% of the total revenue.  68% of the traffic revenue is estimated to come from freight services (Rs 1,79,500 crore), and another 26% from passenger services (Rs 70,000 crore).  Both passenger and freight revenue are estimated to increase by 9% over the previous year. 
- 
Revenue Expenditure:  The total revenue 
expenditure in  2023-24 is projected to be Rs 2,62,790 crore, an increase of 9% over revised estimates of 2022-23.  Expenses towards salaries and pension are estimated to comprise 64% of the total revenue expenditure.   
- 
Capital expenditure in 2023-24 is estimated 
at Rs 2,60,200 crore, an increase of 6% over the previous year.  There is a significant change in the pattern of financing capital expenditure.  In 2023-24, 92% of capital 

 
                                                                                               February 16, 2023 

Saket Surya 
saket@prsindia.org 

3rd Floor, Gandharva Mahavidyalaya ◼ 212, Deen Dayal Upadhyaya Marg ◼ New Delhi - 110002 
Tel: (011) 2323 4801, 4343 4035 ◼ www.prsindia.org  

expenditure is estimated to be financed through 
budgetary support from the central government 
and 7% from extra budgetary resources.  In 
comparison, in 2022-23, their contributions are 
estimated at 65% and 33%, respectively. 

- 
Operating Ratio:  Operating Ratio is ratio of 
working expenses to the receipts from traffic. A lower ratio implies better profitability and availability of resources for capital spending. In 2023-24, the Railways' operating ratio is estimated to be 98.45%.  This is marginally higher than operating ratio for 2022-23 as per revised estimates (98.22%).  In 2021-22, 
operating ratio was 107.39%. 

## Diminishing Revenue Surplus

In recent years, Railways' revenue earnings have 
barely been able to keep up with its revenue 
expenditure (Figure 1).  Between 2013-14 and 
2023-24, Railways' revenue expenditure is 
estimated to grow at an annualised rate of 7.2%, 
faster than its revenue receipts (annual growth of 
6.3%).  Revenue expenditure includes spending on 
items such as salaries, pension, fuel, and 
maintenance of assets.  In 2023-24, as per budget 
estimates, Railways is expected to observe a 
marginal surplus of Rs 2,210 crore (which would 
finance less than 1% of its capital expenditure). 

In 2021-22, Railways observed a revenue deficit of 
Rs 15,025 crore.  In 2019-20 and 2020-21 (COVID 
year), Railways managed to observe a revenue 
surplus by reducing the appropriation towards 
pension fund.  The gap in resources for pension for 
these years was filled through a special loan of Rs 
79,398 crore from the central government in 2020-
21.  During these three years, Railways' passenger  

| 2022-23                                       | 2021-22                              |
|-----------------------------------------------|--------------------------------------|
| Actuals                                       |                                      |
|                                               |                                      |
|                                               |                                      |
|                                               |                                      |
| Receipts                                      |                                      |
|                                               |                                      |
|                                               |                                      |
| 1 Passenger Revenue                           | 39,214                               |
| 2 Freight Revenue                             | 1,41,096                             |
| 3 Other Traffic Sources                       | 10,896                               |
| 4                                             | Gross Traffic Receipts (1+2+3)       |
| 5 Miscellaneous                               | 161                                  |
| 6                                             | Total Internal Revenue (4+5)         |
| 7                                             | Budgetary Support from Government    |
| 8                                             | Extra Budgetary Resources            |
| 9                                             | Total Receipts (6+7+8)               |
|                                               |                                      |
| Expenditure                                   |                                      |
|                                               |                                      |
|                                               |                                      |
|                                               |                                      |
|                                               |                                      |
| 10 Ordinary Working Expenses                  | 1,56,506                             |
| 11 Appropriation to Pension Fund              | 48,100                               |
| 12 Appropriation to Depreciation Reserve Fund | 0                                    |
| 13                                            | Total Working Expenditure (10+11+12) |
| 14 Miscellaneous                              | 1,785                                |
| 15                                            | Total Revenue Expenditure (13+14)    |
| 16                                            | Total Capital Expenditure            |
| 17                                            | Total Expenditure (15+16)            |
| 18                                            | Net Revenue (6-15)                   |
| 19                                            | Operating Ratio                      |

Note: RE: Revised Estimates; BE: Budget Estimates. Sources: Expenditure Profile, Union Budget 2023-24; PRS. 

services were disrupted due to COVID-related restrictions, which led to lower revenue than usual.  
A large part of Railways' costs are committed in nature, which cannot be rationalised in the short term.  Hence, over last three years, Railways had to depend on budgetary support from the government and borrowings to finance its recurring expenses. 

Deterioration in Operating Ratio:  Operating ratio represents the ratio of working expenses (such as fuel and salaries) to traffic earnings.  A higher ratio indicates poorer ability to generate a surplus. As per actuals presented in the budget document, operating ratio was 107.4% in 2021-22.  This implies that in 2021-22, Railways spent Rs 107 to earn Rs 100 from traffic operations.  If accounting adjustments were to be ignored, operating ratio of Railways has been higher than 100% between 2018-19 and 2020-21.  CAG observed that if advances for the next financial year were not accounted as receipts, operating ratio in 2018-19 would have been 101.8%, instead of 97.3%. Similarly, in 2019-20 and 2020-21, operating ratio would have been 114.2% and 131.6%, respectively, if the apportionment for pension fund was as per the requirement.  For administrative purposes, Railway is divided into zones.  As per CAG, nine 

| 2022-23     | 2023-24    |
|-------------|------------|
| BE          | RE         |
| % Change    |            |
| (2022-23 BE |            |
| to 2022-23  | BE         |
| % Change    |            |
| (2022-23 RE |            |
| to 2023-24  |            |
| RE)         | BE)        |

of these 17 zones have observed an operating ratio of more than 100% in all five years between 2016-
17 and 2020-21 (see Table 12 in annexure).   

Note:  *In 2018-19, certain advances for 2019-20 were included 
in receipts.  In 2019-20 and 2020-21, less than required amount 
was apportioned to pension fund. 
Sources: CAG, Union Budget documents of various years; PRS. 

Inability to generate a significant surplus has required Railways to rely on budgetary support from the central government and extra budgetary resources for capacity augmentation and investments.  This has in turn required it to set aside earnings for servicing debt, the liability for which is on a rise.  Inadequate surplus has also led to less than required provisioning for replacement of old assets and safety-related works.  In the following sections, we discuss these challenges and implications in further detail. 

## Modest Growth In Traffic Volume

Railways' primary source of earnings is operation of freight and passenger services.  In 2023-24, 94% of revenue receipts are expected from these operations, with freight's contribution at 68% of revenue receipts.  While freight traffic is estimated to grow at 5% over the revised estimates for 2022- 23, passenger traffic is estimated to grow at 11%. Over the last decade, both rail-based passenger and freight traffic have grown at a modest rate. Between 2013-14 and 2023-24, freight traffic is expected to grow at an annualised rate of 3.5%. Passenger traffic in 2023-24 is expected to remain lower than the levels observed between 2013-14 and 2016-17.  This is mainly due to lower traffic estimated in the second class (ordinary).  Excluding this class, passenger traffic is estimated to grow at an annualised rate of 2% between 2013-14 and 2023-24. 

Sources: Union Budget Documents of various years; PRS. 

In 2017-18, Railways' modal share in freight transport is estimated at 28%, down from 30% in 2011-12.2,3  The reasons for a lower share include: (i) inadequate capacity augmentation leading to unmet demand and sub-optimal speed, (ii) higher tariffs, (iii) negligible diversification in freight basket, and (iv) competition from road which provides better end-to-end connectivity.4   

## Railways' Share In Freight Of Cars Rises

Railways' freight services are used to transport cars from factories to the point of distribution.  Railways' share in the total domestic freight of cars has seen a significant increase in recent years.5   It increased from 1.5% in 2013-14 to 16% in 2021-22.5 
Sources: Union Budget Documents of various years; PRS. 

The Draft National Rail Plan envisages increasing 
the modal share to 45% by 2050.2  For this target, it 
has proposed an investment plan worth Rs 38 lakh 
crore for the period between 2021-22 and 2050-51.2 

Railways classifies its network into: (i) high-
density network routes (HDN) and (ii) highly-
utilised network routes (HUN).2  HDN routes 
comprise 16% of the total network and carry 41% 
of the total traffic.2  HUN routes comprise 35% of 
the total network and carry 40% of the total traffic.2  
As per the Draft National Rail Plan, about 80% of 
HDN routes and 48% of  HUN routes see above 
100% capacity utilisation, implying significant 
network congestion.2  As per the plan, the current 
average speed for Railway freight is about 25 km 
per hour.2  This is targeted to be raised to about 50 
km per hour with development of dedicated freight 
corridors and increasing number of lanes in 
existing network.2 

Capacity Utilisation 
Network Type 
<70% 
70%-
100% 
100%-
150% 
>150% 
High-Density Network (HDN) 
2% 
18% 
58% 
22% 
Highly Utilised Network (HUN) 
24% 
36% 
35% 
13% 
Others 
69% 
22% 
9% 
0% 

Sources: Draft National Rail Plan, Ministry of Railways; PRS.   
Freight concentrated in few bulk goods Most of the freight traffic of railway comes from a few bulk goods such as coal, iron, and cement.  The freight basket has remained largely unchanged over the last 15 years (Table 3).  Coal freight alone constitutes more than 40% of the traffic volume and traffic revenue.  This dependence may present a challenge for Railways in the long-run, as India aims to transition away from coal as the main source of power generation. 

| 2022-23                                                | 2023-24    |
|--------------------------------------------------------|------------|
| Commodity                                              |            |
| 2010-15                                                |            |
| Average                                                |            |
| 2015-20                                                |            |
| Average                                                | RE         |
| Coal                                                   | 43%        |
| Iron and Steel                                         | 13%        |
| Cement                                                 | 9%         |
| Container Service                                      | 7%         |
| Foodgrains                                             | 10%        |
| Fertilizers                                            | 6%         |
| Petroleum, Oil, and                                    |            |
| Lubricant                                              |            |
| 4%                                                     | 4%         |
| Other Goods                                            | 8%         |
| Sources: Union Budget Documents of various years; PRS. |            |

## Persistent Losses In Passenger Services

Railways is estimated to earn about 26% of its revenue in 2023-24 from passenger services. Passenger traffic is categorised into suburban and non-suburban traffic.  Suburban trains are passenger trains that help move passengers within cities and suburbs.  Majority of the passenger revenue (96% in 2023-24) comes from the nonsuburban traffic (or the long-distance trains). As can be seen in Figure 6, losses in operation of passenger services have been increasing in recent years.  After 2016-17, the profit from freight have not been enough to cover the widening losses from passenger services.  In 2019-20, for earning one rupee from passenger and other coaching services, Railways spent about two rupees and 10 paise. Except AC 3 tier and AC chair car, all other classes of passenger services have observed losses in every year between 2017-18 and 2020-21 (Table 4). 

NITI Aayog (2016) had observed that cross-
subsidisation of passenger services by freight 
services has resulted in higher freight tariffs.6  In 
2018, NITI Aayog highlighted higher freight tariffs 
as one of the reasons for a sub-optimal share of 
Railways in freight.7  Losses in passenger services 
are primarily caused due to: (i) passenger fares 
being lower than the costs, and (ii) concessions to 
various categories of passengers (senior citizens, 
National award winners etc.).6  Railways classifies 
these provisions as social service obligations.6  The 
Standing Committee on Railways (2020) had 
recommended that both freight and passenger fares 
should be rationalised prudently.8  It observed that 
any fare increase needs to take into account the 
competition from other transport modes such road 
and air.8  The Committee recommended that the 
social service obligations of Railways should be 
revisited.8  Budget support is provided only for 
losses on strategic lines.  In 2023-24, this 
contribution is estimated at Rs 2,216 crore. 

| Class          | 2017-18    | 2018-19    | 2019-20    | 2020-21    |
|----------------|------------|------------|------------|------------|
| AC-1st Class   | -165       | -249       | -403       | -719       |
| AC 2 Tier      | -604       | -908       | -1,378     | -2,995     |
| AC 3 Tier      | 739        | 318        | 65         | -6,500     |
| AC Chair Car   | 98         | 243        | -182       | -1,079     |
| Sleeper Class  | -11,003    | -13,012    | -16,056    | -20,134    |
| Second Class   | -11,524    | -13,214    | -14,457    | -17,641    |
| Ordinary Class | -16,568    | -19,124    | -20,450    | -11,438    |
| EMU Suburban   |            |            |            |            |
| Services       |            |            |            |            |
| -6,184         | -6,754     | -6,938     | -7,799     |            |

Sources: CAG; PRS. 

## Declining Share Of Non-Fare Revenue

Other than revenue from operation of passenger and freight services, Railways' revenue includes: (i) sundry earnings including earning from renting, leasing of buildings, catering services, and advertisements, and (ii) miscellaneous receipts including sale of tender documents, liquidated damages, and receipts by Railway Recruitment Board.  Till 2016-17, dividends from public sector undertakings of Railways used to be part of sundry earnings of Railways.  From 2017-18, it is credited to the general revenue of the central government. In 2023-24, Railways is estimated to have sundry earnings of Rs 8,000 crore, an increase of 13% over the revised estimates for 2022-23.  In 2023-24, sundry earnings are estimated to comprise 3% of revenue receipts, significantly lower than 2017-18 and 2018-19 (4.9% and 3.7% respectively).  CAG (2022) observed that there is a considerable scope for increasing revenue generation from advertisements and commercial utilisation of railway land.9  In September 2022, the Union Cabinet approved revisions to Railways' land policy to encourage long-term leasing for logisticsrelated activities.10   
Revenue expenditure of Railways include spending on fuel, maintenance of assets, salaries and pension.  A considerable portion of Railways' revenue is spent towards payment of salaries and pension, which are difficult to rationalise in short term.  In 2023-24, Railways is estimated to spend Rs 1,05,235 crore on salaries and Rs 62,000 crore on pension.  These expenses are estimated to increase by 5% and 11% over the previous year, respectively.  Owing to revisions as per the 7th Pay Commission recommendations, spending towards salaries and pension saw a significant increase in 2016-17 (Figure 8).  Since then, spending towards these items as a percentage of revenue receipts has ranged between 63%-75%, except in 2020-21 (COVID year).   

The Committee on Restructuring Railways (2015) 
had observed that the Railways' expenditure on 
staff is extremely high and unmanageable.11   As of 
March 2021, Railways has a total of 15.14 lakh 
sanctioned posts, out of which around 2.94 lakh 
posts are lying vacant, i.e., there is a vacancy of 
about 19%.12  If all of these posts were to be filled, 
staff costs for Railways would be higher than the 
current level. 

As of March 2021, Railways has 15.54 lakh 
pensioners.13  The number of pensioners is higher 
than the number of current employees.  The 
Standing Committee on Railways (2017) had 
observed that the pension bill may increase further 
in the next few years, as about 40% of the Railways 
staff was above the age of 50 years in 2016-17.14  
The Standing Committee on Railways (2020) noted 
that the new pension scheme implemented in 2004 
to reduce the pension bill will show results only 
around 2034-35.8  The Standing Committee (2022) 
recommended that central government should 
consider providing support for pension expenditure 
from general revenue till 2034-35.15  

## Infrastructure Projects See Significant Delays And Cost Escalation

Infrastructure development projects by Railways 
often see delay in completion and cost escalation.  
This shows inefficiency in project execution, which 
has a negative impact on budgetary requirements as 
well as operations.  As of December 2022, out of 
173 ongoing projects worth Rs 150 crore or above, 
76% have seen cost escalation.16  The cumulative 
sanctioned costs of these 131 projects was Rs 1.94 
lakh crore, which escalated to Rs 4.52 lakh crore 
(about 2.3 times).16  This also includes the two 
dedicated freight corridor projects (eastern and 
western), whose revised cost together is Rs 1.02 
lakh crore, an increase of 263% over the sanctioned 
cost (Rs 28,181 crore).16  

Note: Data corresponds to 173 ongoing projects. Sources: 445th Flash Report on Central Sector Projects, Infrastructure and Project Monitoring Division; MoSPI; PRS.  
One of the key reasons for cost escalation is delay in completion.  Out of 122 ongoing projects for which timeline-related data is available, 96% projects are delayed.16  74% of these projects were delayed by more than 24 months.16  Average delay in these projects is about 64 months.16 
Note: Data corresponds to 122  ongoing projects. 

Sources: 445th Flash Report on Central Sector Projects, Infrastructure and Project Monitoring Division; MoSPI; PRS. 

## Budget Support And Extra Budgetary Resources Help Sustain Investments

Railways' capital expenditure includes investments for constructing new lines, procuring wagons, doubling of lines, and renewing tracks.  In 2023-24, Railways' capital expenditure is targeted at Rs 2.6 lakh crore, an increase of 6% over the previous year (Table 5).  The share of capital expenditure in total expenditure of Railways has consistently increased in recent years, despite low revenue surplus (Figure 11).  This increase has been funded through budgetary support from the central government and extra budgetary resources.  

% Change 
(22-23 RE to 
  
2021-22 
Actuals 
2022-23 
Revised 
2023-24 
Budget 
23-24 BE) 
1,17,276 1,59,300 2,40,200 
51% 
Gross Budgetary Support 
71,066 
81,700 
17,000 
-79% 
Extra Budgetary Resources Internal Resources 
1,925 
4,300 
3,000 
-30% 
Total 
1,90,267 2,45,300 2,60,200 
6% 
Sources: Expenditure Profile, Union Budget 2023-24; PRS. 

Sources: CAG, Union Budget Documents of various years; PRS. 

Extra budgetary resources include: (i) borrowings 
through Indian Railway Finance Corporation 
(IRFC), and (ii) borrowings from banks, 
institutional finance, and external investments.  
Investments are in the form of public-private 
partnership, joint ventures, and purchase of equity 
and bonds by private sector.   Extra budgetary 
resources funded more than 50% of capital 
expenditure between 2017-18 and 2020-21.  This 
reliance has increased debt servicing obligation of 
Railways (discussed in the next section in detail).   

Sources: CAG, Union Budget Documents of various years; PRS. 

From 2021-22 onwards, the budgetary support has been increased significantly.  This has been made possible with the central government incurring a much higher fiscal deficit than the usual (above 6% 
of GDP).17  In 2023-24, 92% of capital expenditure will be financed through budgetary support (Rs 2,40,200 crore), up from 65% in 2022-23 (Rs 1,59,300 crore).  Correspondingly, extra budgetary resources have been scaled back.  Funds from extra budgetary resources are estimated at Rs 17,000 crore in 2023-24, a decrease of 79% from the previous year. 

## Rise In Liability For Lease Charges

Extra budgetary resources include funds raised through IRFC.  IRFC borrows from market and follows a leasing model to finance the rolling stock assets.  Since 2015-16, IRFC has also been utilised for project financing.9  Lease charges have both interest and principal components.  Increasing lease charges payment obligation is crowding out the space for productive expenditure. Between 2015-16 and 2023-24, the interest payment obligation is expected to increase at an annualised rate of 15% and principal repayment obligation at 17%.  During the same period, revenue receipts are expected to grow at a much lower rate, i.e., 6%.  In 2023-24, Railways is estimated to spend Rs 23,782 crore towards the interest component, and Rs 22,229 crore towards the principal component.  Together, these payments are estimated to be 17% of revenue receipts, a sharp rise from 9% of revenue receipts in 2015-16. 

Sources: Union Budget Documents of various years; PRS. 

% Change 
(22-23 RE to 
Table 6: Payment of lease charges (Rs crore) 
  
2021-22 
Actuals 
2022-23 
Revised 
2023-24 
Budget 
23-24 BE) 
Capital Component 
14,581 
18,898 
22,229 
18% 
Interest Component 
13,896 
19,855 
23,782 
20% 
Total 
28,477 
38,753 
46,011 
19% 

Sources: Expenditure Profile, Union Budget 2023-24; PRS. 

Shortage of funds for essential provisions 

Railways operates various funds to earmark surplus 
resources for certain purposes.  For instance, 
Depreciation Reserve Fund is for replacement and 
renewal of assets and Capital Fund is to finance 
capital works and repayment of principal 
component of lease charges.  Diminishing revenue 
surplus has meant that these funds do not get 
adequate provisions (Table 11 in annexure).  These 
purposes are then met either from general revenue 
of the central government or extra budgetary 
resources.  This has also led to postponement of 
critical works. 

## Huge Backlog In Replacement Of Old Assets

At the end of 2020-21, value of old assets pending 
to be replaced from Depreciation Reserve Fund is 
Rs 94,873 crore.9  This includes: (i) Rs 58,459 
crore on track renewals and (ii) Rs 26,493 crore on 
rolling stock.9  CAG (2022) observed that given the 
backlog and depleting surplus, the replacement and 
renewal of assets could become a burden for the 
central government.9 

## Servicing Of Lease Charges From General Revenue

Due to inadequate funds in the capital fund, the 
principal component of lease charges is being paid 
from budgetary support.  CAG (2022) observed 
that ideally, this expenditure should be met from 
Railways' internal resources.9  CAG (2019) had 
observed that if obligations towards IRFC have to 
be met from budgetary support, the government 
might as well borrow directly from the market, as 
the cost of borrowings would be lower.18  In 2023-
24, no extra budgetary resources have been 
estimated to be raised through IRFC. 

## Inability In Meeting Committed Funds For Safetyrelated Works

Rashtriya Rail Sanraksha Kosh was set up for five 
years from 2017-18 for financing critical safety 
related works.8  The fund was to have a corpus of 
one lakh crore rupees.8  Railways was to apportion 
Rs 5,000 crore in each of these five years, however, 
it did not meet this obligation in any year. 

 

## Annexure

% change  
(2022-23 RE  
2021-22 
2022-23 
Revised 
2023-24 
Budget 
% share in  
2023-24 BE 
Commodity 
to 2023-24 BE) 
Earning Volume Earning Volume Earning Volume Earning Volume Earning Volume 
Coal 
65,856 3,27,754 
82,752 3,88,536 
89,875 4,08,474 
9% 
5% 
50% 
43% 
Other Goods 
10,018 
78,877 
11,996 
88,565 
13,227 
94,530 
10% 
7% 
7% 
10% 
Cement 
10,605 
81,476 
12,397 
80,080 
14,073 
88,000 
14% 
10% 
8% 
9% 
Containers service 
6,275 
66,622 
7,263 
63,520 
8,514 
71,918 
17% 
13% 
5% 
8% 
Food grains 
10,661 
97,076 
10,592 
79,850 
8,479 
61,880 
-20% 
-23% 
5% 
7% 
Iron ore 
13,093 
66,123 
11,923 
53,851 
14,101 
61,717 
18% 
15% 
8% 
7% 
Pig iron and Finished steel 
9,125 
60,238 
9,911 
52,756 
11,865 
61,140 
20% 
16% 
7% 
6% 
Fertilizers 
5,428 
44,530 
6,447 
44,787 
6,755 
45,430 
5% 
1% 
4% 
5% 
Petroleum, Oil, and Lubricant 
5,822 
31,359 
6,337 
31,131 
6,739 
32,050 
6% 
3% 
4% 
3% 
Raw materials for steel plants 
2,406 
17,761 
2,632 
15,431 
2,902 
16,470 
10% 
7% 
2% 
2% 
Miscelleneous revenue 
1,809 
- 
2,750 
- 
2,967 
- 
8% 
- 
2% 
- 
Total 
1,41,096 8,71,816 1,65,000 8,98,507 1,79,500 9,41,609 
9% 
5% 
100% 
100% 

Note: NTKM - Net Tonne Kilometre (One NTKM is when one tonne of goods is carried for a kilometre). RE: Revised Estimates; BE: Budget Estimates. Sources: Expenditure Profile; Union Budget 2023-24; PRS. 

% change  
(2022-23 RE  
2023-24 
Budget 
% share in  
2023-24 BE 
 
2021-22 
2022-23 
Revised 
to 2023-24 BE) 
Earning Volume Earning 
Volume 
Earning 
Volume 
Earning Volume Earning Volume 
Suburban 
1,370 
69,798 
2,265 
1,13,425 
2,619 
1,31,893 
16% 
16% 
4% 
12% 
Non-Suburban 
37,844 **5,20,418** 
61,735 
8,89,083 
67,381 
9,80,440 
9% 
10% 
96% 
88% 
Second Class (M E) 
7,170 1,58,819 
17,174 
3,80,434 
19,027 
4,24,847 
11% 
12% 
27% 
38% 
Sleeper Class (M E) 
12,849 2,25,637 
15,753 
2,76,630 
17,028 
3,01,415 
8% 
9% 
24% 
27% 
AC 3 Tier 
12,225 
90,488 
19,310 
1,42,725 
21,156 
1,57,619 
10% 
10% 
30% 
14% 
Second Class (Ordinary) 
400 
18,355 
983 
45,129 
1,058 
48,970 
8% 
9% 
2% 
4% 
AC 2 Tier 
3,385 
18,536 
5,446 
29,779 
5,855 
32,272 
8% 
8% 
8% 
3% 
AC Chair Car 
1,163 
6,602 
1,912 
10,834 
1,999 
11,421 
5% 
5% 
3% 
1% 
AC First Class 
496 
1,537 
880 
2,726 
962 
3,006 
9% 
10% 
1% 
0% 
Executive Class 
140 
368 
241 
634 
257 
680 
6% 
7% 
0% 
0% 
Sleeper Class (Ordinary) 
3 
39 
6 
90 
6 
97 
7% 
8% 
0% 
0% 
First Class (Ordinary) 
4 
27 
11 
84 
12 
95 
12% 
13% 
0% 
0% 
First Class (M E) 
11 
10 
20 
18 
19 
18 
-1% 
0% 
0% 
0% 
Total 
39,214 **5,90,216** 
64,000 **10,02,508** 
70,000 **11,12,333** 
9% 
11% 
100% 
100% 

Note: PKM - Passenger Kilometre (One PKM is when a passenger is carried for a kilometre). RE: Revised Estimates; BE: Budget Estimates. Sources: Expenditure Profile; Union Budget 2023-24; PRS. 

## Table 9: Details Of Capital Expenditure (Rs Crore)

| 2022-23                                       | 2022-23    | 2023-24    |
|-----------------------------------------------|------------|------------|
| % change from                                 |            |            |
| 22-23 RE to 23-                               | Head       |            |
| 2021-22                                       |            |            |
| Actuals                                       | BE         | RE         |
| 24 BE                                         |            |            |
| New Lines (Construction)                      | 21,245     | 26,324     |
| Gauge Conversion                              | 2,837      | 3,475      |
| Doubling                                      | 32,219     | 37,150     |
| Traffic Facilities-Yard Remodeling and Others | 2,675      | 3,045      |
| Rolling Stock                                 | 41,406     | 38,887     |
| Leased Assets-Payment of Capital Component    | 14,581     | 22,188     |
| Road Safety Works-Road Over/Under Bridges     | 4,222      | 6,500      |
| Track Renewals                                | 14,082     | 12,077     |
| Electrification Projects                      | 6,961      | 7,695      |
| Other Electrical Works incl. TRD              | 627        | 650        |
| Workshops Including Production Units          | 2,668      | 2,045      |
| Staff Welfare                                 | 473        | 495        |
| Customer Amenities                            | 1,995      | 2,700      |
| Investment in Govt. Commercial Undertaking -  |            |            |
| Public Undertaking/JVs/SPVs                   |            |            |
| 25,751                                        | 38,687     | 28,981     |
| Metropolitan Transport Projects               | 2,515      | 1,998      |
| Others                                        | 5,621      | 6,884      |
| EBR- Partnership                              | 10,388     |            |
|                                               |            |            |
| 14,700                                        |            |            |
|                                               |            |            |
| 17,000                                        |            |            |
|                                               |            |            |
| 16%                                           |            |            |
|                                               |            |            |
| Total                                         | 1,90,267   | 2,45,800   |

RE: Revised Estimates; BE: Budget Estimates. Sources: Expenditure Profile; Union Budget 2023-24; PRS. 

Head 
Achieve
% 
2021-22 
2022-23 
2023-24 
% change 
from 22-
23 RE to 
23-24 BE 
Revised  
Target 
ment 
In % 
Budget 
Target 
Revised 
Target 
change 
Budget 
Target 
Construction of New Lines (Route Kms) 
300 
289 
96% 
300 
200 
-33% 
600 
200% 
Gauge conversion (Route Kms) 
500 
636 
127% 
500 
100 
-80% 
150 
50% 
Doubling of Lines (Route Kms) 
1,600 
1,984 
124% 
1,700 
2,200 
29% 
2,800 
27% 
Rolling Stock 


(i) Diesel Locomotives 
0 
100 
- 
100 
100 
0% 
100 
0% 
(ii) Electric Locomotives 
1,091 
1,110 
102% 
1,290 
1,290 
0% 
1,290 
0% 
Coaches 
8,115 
7,151 
88% 
7,551 
7,520 
0% 
6,978 
-7% 
Wagons (vehicle units) 
9,600 
8,386 
87% 
13,000 
21,000 
62% 
26,000 
24% 
Track renewals (Track Kms) 
3,600 
4,275 
119% 
3,700 
4,200 
14% 
4,800 
14% 
Electrification Projects (Route Kms) 
6,000 
6,366 
106% 
6,500 
6,500 
0% 
6,500 
0% 

Sources: Expenditure Profile; Union Budget 2023-24; PRS. 


Development 
Year 
Capital Fund 
Debt Service 
Fund 
Depreciation 
Reserve Fund 
Fund 
Rashtriya Rail 
Sanraksha Kosh 
2013-14 
500 
165 
7,900 
3,075 
- 
2014-15 
6,233 
57 
7,775 
1,375 
- 
2015-16 
5,798 
3,488 
5,600 
1,220 
- 
2016-17 
2,398 
0 
5,200 
2,515 
- 
2017-18 
0 
0 
1,540 
1,506 
0 
2018-19 
0 
0 
300 
750 
3,024 
2019-20 
0 
0 
400 
1,389 
201 
2020-21 
0 
0 
200 
1,547 
1,000 
2021-22 
0 
0 
0 
0 
0 
2022-23 RE 
1,300 
0 
1,000 
1,093 
0 
2023-24 BE 
0 
0 
1,000 
1,210 
1,000 

RE: Revised Estimates; BE: Budget Estimates. Sources: Expenditure Profile; Union Budget 2023-24; PRS. 

| Zone               |   2016-17  |   2017-18  |   2018-19  |   2019-20  |   2020-21  |
|--------------------|------------|------------|------------|------------|------------|
| Central            |      105   |      111   |      105   |      105   |      126   |
| East Central       |      102   |       98   |       98   |      102   |       89   |
| East Coast         |       54   |       52   |       52   |       51   |       47   |
| Eastern            |      165   |      181   |      186   |      170   |      175   |
| Metro Rail/Kolkata |      260   |      278   |      248   |      216   |      678   |
| North Central      |       71   |       67   |       68   |       74   |       79   |
| North Eastern      |      197   |      202   |      205   |      188   |      203   |
| North Western      |       95   |      108   |      106   |      113   |      107   |
| Northeast Frontier |      130   |      169   |      161   |      152   |      139   |
| Northern           |      119   |      117   |      132   |      155   |      154   |
| South Central      |       86   |       83   |       80   |       88   |      101   |
| South East Central |       56   |       56   |       56   |       54   |       46   |
| South Eastern      |       73   |       76   |       73   |       65   |       57   |
| South Western      |      120   |      129   |      133   |      124   |      138   |
| Southern           |      148   |      161   |      153   |      146   |      219   |
| West Central       |       74   |       75   |       68   |       71   |       68   |
| Western            |      103   |      108   |      102   |      115   |      128   |
| Overall            |       96.5 |       98.4 |       97.3 |       98.4 |       97.5 |

Note: Figures have been rounded off. Sources: CAG; PRS. 

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