Working expenses of Indian Railways refer to the recurring costs incurred in the day-to-day functioning and maintenance of the railway system. These expenses include staff wages, fuel and energy consumption, upkeep of rolling stock and track infrastructure, and administrative overheads. Broadly, working expenses are categorised into three key components: Ordinary Working Expenses (OWE), Appropriation to the Depreciation Reserve Fund (DRF), and contributions to the Pension Fund. Ordinary Working Expenses cover the immediate operational costs, while the DRF ensures long-term asset sustainability, and the Pension Fund supports post-retirement liabilities of employees. A substantial portion of Indian Railways’ working expenses is allocated to salaries and pensions, highlighting the labour-intensive nature of its operations.

The relevance of monitoring and managing working expenses lies in ensuring the financial sustainability and operational efficiency of Indian Railways—one of the world’s largest railway networks. With growing pressure from rising fuel prices, ambitious modernisation goals, and the need to expand services across a vast geography, these expenses directly influence fare structures, service quality, and capital investment potential. Strategic efforts such as electrification, the involvement of private players in select services, and the optimisation of resource use are vital to reducing operational costs. Efficient management of working expenses supports long-term viability while maintaining affordability for passengers and competitiveness for freight transport.