Finance Minister Nirmala Sitharaman will present the Railway Budget 2026 as part of the Union Budget today, with the spotlight firmly on rail safety, passenger
comfort and network expansion. Recent accidents have renewed concerns over safety standards, while travellers are also hoping for long-pending measures such as senior citizen concessions and the rollout of more modern trains.
Union Budget 2026 Live Updates
Here’s what passengers are expected to look out for in the Railway Budget:
1. Fare Concessions
A key demand from passengers ahead of the Railway Budget 2026 is the revival of fare concessions for senior citizens, a benefit that was discontinued during the Covid-19 pandemic and has yet to be reinstated. Before the withdrawal, male passengers aged 60 and above received a 40% discount on tickets, while women aged 58 and above were entitled to a 50% concession. The scheme covered a wide range of services, including mail and express trains as well as premium services such as Rajdhani, Shatabdi and Duronto. Although the rollback was initially positioned as a temporary pandemic-era measure, the concession remains absent despite the rail network now operating at full capacity.
2. Funding For Kavach 4.0
Rail safety received a boost on January 30, when Indian Railways operationalised 472.3 route kilometres of Kavach Version 4.0 across three different sections. The rollout of the homegrown automatic train protection system is being seen as a major milestone in accident prevention. In the Railway Budget 2026, Kavach is expected to be a priority area, with a likely increase in allocations and progress towards awarding large-scale tenders to expand Version 4.0 to nearly 18,000 km of rail tracks. Kavach works by automatically triggering braking when a loco pilot does not respond in time, significantly reducing the risk of collisions, particularly head-on crashes.
3. Allocation For Safety
Rail safety is set to take centre stage in the Railway Budget 2026, with the government expected to significantly increase funding for the sector. According to reports, allocations for safety-related works could exceed Rs 1.3 lakh crore. Alongside this, overall capital expenditure for Indian Railways is projected to see a roughly 10% rise, reaching about Rs 2.75 lakh crore, compared to Rs 2.52 lakh crore in 2025. The anticipated increase comes amid heightened scrutiny following a series of high-profile train derailments.
4. Increase in Non-AC Coaches
In July 2025, Union Minister Ashwini Vaishnaw informed Parliament that nearly 70% of the coaches operating on Indian Railways were non-AC. He added that a dedicated manufacturing drive had been launched to produce 17,000 non-AC general and sleeper coaches over a five-year period. The Railway Budget 2026 is expected to give formal shape to this initiative, reinforcing the government’s push to ensure that train travel remains affordable and accessible for the masses.
5. 24-coach Vande Bharat Sleeper Trains
The Railway Budget is likely to support the mass production of 24-coach Vande Bharat Sleeper trains, which are being positioned as the next-generation replacement for Rajdhani Express services on long-distance routes. These trains are expected to be equipped with pantry cars and a range of enhanced safety systems. According to reports, the first prototype is planned to be ready by the end of 2026.
