Finance Minister Nirmala Sitharaman is all set to announce the Railway Budget 2026 as a part of the Union Budget tomorrow. The expectations are high, and the announcements are expected to be centred around safety improvements, passenger-friendly initiatives, and an increase in rail capacity.
The recent train accidents have once again put the issue of rail safety in the limelight, and the long-pending demands of the passengers are also expected to be raised. Ranging from concessions for senior citizens to new trains and crowd management, here are the areas that passengers are eagerly waiting to hear about.
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Senior citizen concessions under watch
One of the most eagerly awaited announcements in the Railway Budget 2026 is expected to be the possible return of ticket concessions for senior citizens. The concessions were withdrawn during the COVID-19 pandemic and have not been restored yet. Earlier, men above 60 years were eligible for a 40% concession, and women above 58 years were eligible for a 50% concession.
The concession was applicable to mail, express, Rajdhani, Shatabdi, and Duronto trains. Although the withdrawal of the concession was described as a temporary measure during the pandemic, it has not been restored even after the rail services have been running at full capacity.
Bigger push for safety
Railway safety is expected to be one of the major points of discussion in the Budget 2026. As per a report by NDTV, there are reports that the outlay for railway safety could be over Rs 1.3 lakh crore. However, the overall railway capital expenditure is also expected to increase by 10%, touching nearly Rs 2.75 lakh crore in Budget 2026, up from Rs 2.52 lakh crore in Budget 2025. This comes at a time when there have been several derailments in the past few months.
Kavach 4.0 likely to get funding boost
On January 30, Indian Railways introduced 472.3 route kilometres of Kavach Version 4.0, the indigenous automatic train protection system, on three sections. This is a significant step towards improving railway safety. In the Railway Budget 2026, Kavach is expected to get a significant allocation.
The railway ministry is working towards finalising tenders for extending the coverage of Kavach 4.0 to 18,000 km. The system has the capability to automatically apply the brakes in case the driver does not, thus preventing head-on collisions.
Vande Bharat sleeper trains in focus
The Budget is also expected to facilitate the production of 24-coach Vande Bharat Sleeper trains. These trains are expected to be an alternative to Rajdhani Express trains on long routes and are also expected to have pantry cars, among other safety features. A prototype is expected to be ready by the end of 2026.
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More non-AC coaches to tackle overcrowding
Overcrowding is also a priority area. In July 2025, Union Minister Ashwini Vaishnaw stated in Parliament that the number of non-AC coaches in Indian Railways had increased to 70%. He also stated that a special production plan is being implemented to introduce 17,000 non-AC general and sleeper coaches in the next five years.
This plan is expected to be approved in the Railway Budget 2026, with the intention of ensuring that affordable travel by train remains within the reach of the common man.
