What is Railway Budget ?
The Railway Budget was a separate budget presented annually by the Union Railway Minister, outlining the Indian Railways’ financial plans, investments, and policies.
When it was Merged:
The Railway Budget was merged with the General Budget in 2017, starting from the financial year 2017-18.
Reasons for Merger:
- Simplification: To simplify the budget-making process and reduce unnecessary distinctions.
- Holistic Approach: To adopt a holistic approach to the country’s financial planning, integrating rail and general budgets.
- Flexibility: To provide greater flexibility in allocating resources and prioritizing spending.
Benefits of Merger:
- Improved Coordination: Enhanced coordination between rail and general budgets, ensuring more effective resource allocation.
- Reduced Redundancy: Elimination of redundant processes and duplication of efforts.
- Increased Transparency: Greater transparency in financial reporting and decision-making.
Impact on Railways:
- Increased Funding: Potential for increased funding and investment in rail infrastructure and services.
- Integrated Planning: Railways can now be planned and developed in conjunction with other modes of transport and national priorities.
The merger of the Railway Budget with the Annual Budget aimed to streamline financial planning, improve coordination, and enhance transparency, ultimately benefiting the country’s overall development.