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Why Railway Budget was merged in Union BudgetA Niti Aayog commission submitted a white paper recommendation to do away with the practice
DH Web Desk
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Representative image. Credit: PTI Photo
Representative image. Credit: PTI Photo

In 2017, the Railway Budget was merged with the Union Budget, ending a practice that began in 1924 under the British.

A Niti Aayog commission submitted a white paper recommendation to do away with the practice. The recommendation was submitted to then Railway Minister Suresh Prabhu.

He wrote a letter to the then-Finance Minister Arun Jaitley to merge the Railway and Union Budgets for the welfare of the Railways and the Indian economy.

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Arun Jaitely brought this up in 2016 at the Rajya Sabha and a special committee was constituted to plan the merger of both the Budgets.

As per the Niti Aayog recommendations, over the years the Railway Budget had shrunk significantly, and therefore a separate Budget was not required. The recommendations also stated that the British started this practice in 1924 because a significant part of the government revenues and the country's Gross Domestic Product (GDP) was dependent on Railway revenues.

India was the only country with a separate Railway Budget. In 2017, Arun Jaitley presented the first combined Union Budget, and the practice has been followed since.

This year, the Union Budget will be presented on Feb 1, 2022 by Finance Minister Nirmala Sitharaman.

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