Union Budget 2024: Will FM Nirmala Sitharaman restore train fare concession for senior citizens?

Finance Minister Nirmala Sitharaman is currently gearing up to present Budget 2024. There is a growing anticipation among many regarding the potential reinstatement of the Senior Citizen Railway Concession by the government. This move is seen as a significant gesture before the upcoming general elections later this year.

In March 2020, the Indian Railways discontinued the discounts offered on train fares to senior citizens and women. This policy change included the elimination of the 50 per cent discount for female senior citizens and the 40 per cent discount for male and transgender senior citizens. As a result, senior citizens are now required to pay the full fare, aligning them with other passengers.

As per railway guidelines, individuals aged 60 and above for males and transgenders, and 58 and above for females, are considered senior citizens.

The Senior Citizen Railway Concession was available on all classes of mail and express trains, such as Duranto, Shatabdi, Jan Shatabdi, and Rajdhani trains.

The withdrawal of senior citizen concessions reportedly resulted in significant additional revenue for the Railways, as disclosed through various reports and RTI inquiries. 

During the period of suspension, the Indian Railways accumulated a revenue of Rs 5,062 crore from eight crore senior citizens, with Rs 2,242 crore originating from the absence of concessions. Within this segment, 4.6 crore were male passengers, 3.3 crore were female passngers, and approximately 18,000 transgender individuals.

Government's take

In 2022, Railway Minister Ashwini Vaishnaw informed Parliament that there have been persistent calls to reinstate senior citizen railway concessions. However, he expressed that such reinstatement would impose a financial burden on the government.

In December 2023, Railway Minister Ashwini Vaishnaw highlighted that the Railways provided a substantial subsidy of Rs 59,837 crore on passenger tickets in 2019-20 to cater to all segments of society, amounting to an average concession of 53% for every railway traveller. Vaishnaw emphasized that this subsidy continues for all passengers, with additional concessions granted for various categories, including four categories of persons with disabilities (Divyangjans), 11 categories of patients, and eight categories of students.