Preceding the 2024 Union Budget, there is a growing inquiry in the railway industry on the potential reinstatement of senior citizen fare concessions by Indian Railways.
Senior persons were no longer eligible for train fare savings, which were announced by Indian Railways in March 2020. The judgment removed the senior citizen discounts of forty percent for male and transgender individuals and fifty percent for female senior citizens. Ever since, older persons must pay the entire fare, just like every other passenger.
Senior Citizen: Railway Guidelines, Revenue Boost, and Minister’s Response
Railway guidelines state that senior citizens are defined as those who are sixty years of age or older for men and transgender people, and fifty-eight years old for females.
The report, which cited a number of files and RTI requests, claimed that the Railways’ revenue increased significantly as a result of the elimination of senior citizen discounts.
When asked if senior citizen discounts would be reinstated prior to the Interim Budget 2024, Union Minister of Railways Ashwini Vaishnaw said that Indian Railways already offers a 55% fare discount to all passengers.
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Indian Railways Budget 2024: Fiscal Impact and Policy Considerations
Indian Railways revealed earlier this year that during the fiscal year 2022–2023 it earned approximately Rs 2,242 crore from roughly 150 million senior citizens in answer to an RTI application filed by Madhya Pradesh’s Chandra Shekhar Gaur.
In addition to being a matter of policy, the decision to reinstate senior citizen discounts in Budget 2024 also takes into account the interests and values of society. The report went on to say that it gives the government a great chance to demonstrate its commitment to social justice, elder care, and accountable governance.
Finance Minister Nirmala Sitharaman gave the Indian Railways Rs 2.55 trillion in the Interim Budget for the 2024–2025 fiscal year. This represents a 5.8% increase over the Rs 2.41 trillion budgeted forecast for 2023–2024. Rs 2.43 trillion was the revised estimate for the fiscal year 2023–2024.
