Budget 2021: What's in it for Railways? check rating agencies Brickwork, ICICI Direct report, focus areas

Railway Budget is no more presented separately since 2016, when it was merged with the Union budget. It ended the 92-year-old tradition of holding a separate budget that was started by the British India in 1924. However, despite the railway budget being merged with the Union Budget, it continues to draw a major chunk of allocation of the general budget.

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Rating agencies have also pegged the allocation of this budget more than the previous year, when Finance Minister Nirmala Sitharaman in her second budget had made Rs 1.61 lakh crore outlay for the railways, while the Budget allocation was Rs 65,837 crore.

This year, the allocation towards the railway budget is expected to be around ₹ 1.70 lakh crore and the gross budgetary support for railways expected to be around ₹ 75,000 crore, rating agency Brickwork Ratings said in its report.

Similarly, ICICI Direct report pegged the allocation towards the railway budget to be around ₹1.79 lakh crore and gross budgetary support to be around ₹75,000 crore.  

Meanwhile, Brickwork Rating report said the Budget is expected to bring more policy support for private trains, new train sets for faster connectivity on new routes, better rail connectivity to tourist and pilgrimage spots, expansion of railway infrastructure for better connectivity in northeastern states.

According to the same report, a greater allocation is also expected towards green energy initiative by Indian Railways.