Railways budget merges with general Union budget

Indian Railways (IR) has ended its 92-year-old practice and has merged the railway budget with the general budget. However, the distinct entity and financial autonomy of IR will be retained. The step has been taken to reduce costs, as the government has to bear an additional burden of Rs 400 billion due to the implementation of the Seventh Pay Commission recommendations and an annual expenditure of Rs 320 billion on subsidies.