New Delhi: As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026 tomorrow, passengers across India are keeping a close eye on the Railway segment, anticipating reforms that promise safer, more comfortable, and more passenger-friendly journeys. With several recent accidents putting rail safety under the spotlight, the Budget is expected to balance infrastructure investment, technological upgrades, and passenger welfare measures. Here’s a look at the five major areas of focus in the upcoming Railway Budget.
Return of Senior Citizen Concessions
One of the most eagerly awaited announcements is the restoration of ticket concessions for senior citizens, which were suspended during the COVID-19 pandemic and have not yet been reinstated. Traditionally, men aged 60 and above were entitled to a 40% discount, while women aged 58 and above received 50% off on mail, express, Rajdhani, Shatabdi, and Duronto trains. The resumption of these benefits is seen as a long-overdue measure to support elderly passengers, who form a significant portion of India’s rail travelers.
Strengthened Focus on Safety
Rail safety is expected to dominate Budget 2026, with government allocations likely to exceed ₹1.3 lakh crore. Overall capital expenditure for Indian Railways is projected to rise by about 10%, from ₹2.52 lakh crore in 2025 to ₹2.75 lakh crore, reflecting a robust push to modernize infrastructure, upgrade tracks, and prevent accidents. The emphasis comes in the wake of high-profile derailments that have renewed public and political focus on passenger safety.
Kavach 4.0 to Receive Major Funding Boost
The indigenous automatic train protection system Kavach 4.0 has emerged as a cornerstone of India’s rail safety strategy. On January 30, Indian Railways commissioned 472.3 route kilometres under Kavach 4.0 across three sections, significantly reducing the risk of collisions. Budget 2026 is expected to allocate additional funds to extend Kavach coverage to 18,000 km of tracks, moving closer to the completion of tenders and nationwide deployment. The system automatically applies brakes if the driver fails to respond, enhancing operational safety across high-density routes.
Full-Scale Rollout of Vande Bharat Sleeper Trains
Passengers can also look forward to the Vande Bharat Sleeper trains, designed to replace long-distance Rajdhani Express services. These 24-coach trains will feature pantry cars, advanced safety systems, and modern passenger amenities. A prototype is reportedly expected by late 2026, and the Budget may sanction funding for mass production, signaling a major step in India’s high-speed rail modernization plan.
Expansion of Non-AC Coaches to Ease Overcrowding
Affordable travel remains a top priority. Last July, Union Minister Ashwini Vaishnaw informed Parliament that non-AC coaches accounted for approximately 70% of Indian Railways’ services. A special manufacturing program has been launched to add 17,000 non-AC general and sleeper coaches over the next five years. Budget 2026 is expected to formalize this plan, aiming to reduce overcrowding and ensure cost-effective travel for millions of daily commuters and long-distance passengers.
As Finance Minister Sitharaman unveils her ninth consecutive Budget, these anticipated reforms in the rail sector reflect a balance of modernization, passenger welfare, and safety, signaling a transformative year ahead for Indian Railways.