Working Expenses by Indian Railways from 2017 to 2025

The overall working expenses of Indian Railways showed a notable pattern of growth and adaptation over the last eight years, with some significant fluctuations during the pandemic period. Starting from a total expenditure of ₹175,834 crores in FY 2017-18, the Indian railways have seen its expenses projected to reach ₹273,000 crores in FY 2024-25 (BE), representing a substantial increase of about 55% over this eight-year period. This growth reflects the expanding operations and modernization efforts of the railway network. Looking at the ordinary working expenses, which form the backbone of day-to-day operations, there’s been a steady upward trajectory from ₹128,497 crores in FY 2017-18 to a projected ₹205,000 crores in FY 2024-25 (BE). This consistent increase suggests rising operational costs, likely driven by factors such as fuel prices, maintenance requirements, and employee-related expenses. It’s worth noting that even during the FY 2020-21 pandemic, ordinary working expenses remained relatively stable at ₹135,845 crores, indicating the fixed nature of many railway operational costs. The appropriation of the depreciation reserve fund shows an interesting pattern that reveals the railways’ investment planning strategy. Starting at ₹1,540 crores in FY 2017-18, it saw a significant reduction to ₹300 crores in FY 2018-19 and notably dropped to zero in FY 2021-22 during the post-pandemic recovery period. However, there’s been a steady increase since then, with the amount projected to reach ₹1,000 crores in FY 2024-25 (BE). This pattern suggests a strategic approach to asset maintenance and replacement, with temporary adjustments made during financially challenging periods. Perhaps the most striking aspect of the data is the pension fund appropriation pattern. From a substantial ₹45,798 crores in FY 2017-18, it saw a dramatic reduction during the pandemic years, dropping to just ₹523 crores in FY 2020-21 (marked with #, suggesting a special circumstance or accounting adjustment). However, since then, the pension fund recovered strongly, with appropriations increasing to ₹48,100 crores in FY 2021-22 and projected to reach ₹67,000 crores in FY 2024-25 (BE). This recovery and growth indicate both the railway’s commitment to employee welfare and the increasing pension obligations due to an ageing workforce. The data also reveals the Indian railway’s financial resilience and adaptation strategies during the pandemic period. The total working expenses decreased to ₹136,568 crores in FY 2020-21, marking the lowest point in recent years, but quickly recovered to ₹204,606 crores in FY 2021-22. This bounce-back demonstrates effective cost management and operational flexibility during crisis periods. Looking ahead, the budgetary estimates for FY 2024-25 suggest confidence in continued growth and operational expansion, with balanced increases across all expense categories. The projected 8.8% increase in total working expenses from FY 2023-24 indicates planned operational expansion while maintaining fiscal prudence.