Finance Minister Nirmala Sitharaman is set to present the Railway Budget 2026 as part of the Union Budget tomorrow, with expectations centred on safety upgrades, passenger-friendly measures and capacity expansion. A few recent accidents have kept rail safety in focus. Expectations are also there for the Budget to address passenger demands such as senior citizen concessions and more modern trains.
Here's what passengers are likely to watch out for in the Railway Budget.
Senior Citizen Concessions
One of the biggest passenger expectations from Railway Budget 2026 is the return of ticket concessions for senior citizens, which were withdrawn during the Covid-19 pandemic, and have not been restored since. Earlier, men aged 60 and above were eligible for a 40% concession, while women aged 58 and above got a 50% discount. These benefits applied across mail, express, Rajdhani, Shatabdi and Duronto services. While the withdrawal was described as a temporary move during the pandemic, the concession has still not come back even as train operations have returned to full capacity.
Bigger Push For Safety
Safety is expected to dominate the Railway Budget 2026, with the government likely to raise the allocation. As per various reports, the spending on rail safety could cross Rs 1.3 lakh crore. At the same time, overall railway capex is expected to rise by about 10% to around Rs 2.75 lakh crore, up from Rs 2.52 lakh crore in 2025. The jump may come in the backdrop of high-profile derailments.
Kavach 4.0 May Get A Major Funding Boost
On January 30, Indian Railways commissioned 472.3 route kilometres of Kavach Version 4.0, its indigenous automatic train protection system, across three sections. This marked a big step towards strengthening rail safety. In Railway Budget 2026, Kavach is expected to see a jump in funding, with the ministry likely to move closer to finalising tenders to extend Kavach 4.0 coverage to 18,000 km of track. The system is designed to automatically apply brakes if the pilot fails to do so, helping prevent head-on collisions.
Vande Bharat Sleeper Rollout In Focus
The Railway Budget is expected to back the full-scale production of 24-coach Vande Bharat Sleeper trains. These are designed to replace Rajdhani Express services on long routes and are expected to include pantry cars along with advanced safety features. A prototype is reportedly targeted for late 2026.
More Non-AC Coaches To Ease Overcrowding
In July 2025, Union Minister Ashwini Vaishnaw told Parliament that the share of non-AC coaches in trains run by Indian Railways had risen to around 70%. He also said a special manufacturing programme was underway to add 17,000 non-AC general and sleeper coaches over the next five years. Budget 2026 is expected to formalise this plan, with the focus on keeping affordable travel within reach for the common man.
