India Union Budget 2023: $29 billion capital outlay announced for Railways, nine times of FY 13-14

India's Union Finance Minister Nirmala Sitharaman on Wednesday announced a whopping capital outlay of $29 billion (Rs 2.40 lakh crore) for India Railways inher budget speech. The minister said the amount was nine times the capital outlay laid out in 2013-14."The Indian Railways capital outlay has been set at 2.40 lakh crore, highest ever; 9x of what was in 2013," said Sitharaman during the speech.The allocated funds will be used to build new trains, railway tracks,increase passenger facilities and ramp up the infrastructure to a world-class level.

The government has been targeting 100 per cent electrification of the railway network across the country. It is also attempting to lay 2,000 kilometres of new tracks to increase connectivity.

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Notably, in 2013-14, the capital outlay for Railways stood at $7.7 billion (Rs 63,363 crore) asannounced by then railway minister Pawan Kumar Bansal.

While Sitharaman did not share any specifications regarding the Vande Bharat trains or the bullet trains, experts suggested that the money will be steadily used for the same.

Interestingly, the Railways had asked for an outlay of $30.5 billion (Rs 2.5 lakh crore) in the lead-up to the budget for the financial year 2023-24.

Earlier in her speech, the finance minister said the overall capital investment outlay was being increased by 33 per cent to Rs 10 lakh crore, which is 3.3 per cent of India's GDP.

In her opening remarks, Sitharaman said that the Indian economy is on the right track and heading towards a bright future. She noted that the government's focus is on wide-ranging policies.

Read more: 'First Budget in Amrit Kaal': Indian economy on right track with GDP growth at 7%

Ahead of the budget presentation, a Union Cabinet meeting chaired by Indian Prime Minister Narendra Modi was held in Parliament.

Sitharaman along with ministers of state Pankaj Chaudhary and Bhagwat Karad and Finance Secretary TV Somanathan also called on President Droupadi Murmu.

(With inputs from agencies)

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