Budget'24: Comeback of discounted train fare for senior citizens?

New Delhi: Finance Minister Nirmala Sitharaman is currently immersed in preparing for Budget 2024. This has to be a pivotal financial roadmap that will shape India’s economic policies for the year. Recently, she participated in a traditional Halwa ceremony on Tuesday. This is an event that marks the beginning of the budgetary process. During the ceremony, she took part in distributing halwa, a customary gesture symbolizing the commencement of budget preparations.

Out of many expectations one high hope among the people is of having a reintroduction of tax breaks. This anticipation is among the middle class. The general public is also anticipating a restoration of travel concessions for senior citizens using the railways. There is optimism that the upcoming budget might also address the reinstatement of rental concessions for senior citizens. Many eagerly await this move.

Rental concessions for senior citizen:

Senior citizens traveling by rail have always  benefited from rental concessions. Recently, Indian Railways ceased these concessions. This happened after March 2020 amid the COVID-19 pandemic. Previously, female senior citizens enjoyed a 50% discount on rental fares. While male and transgender senior citizens received a 40% discount. The cessation of these benefits means that senior citizens now have to pay full fares like other passengers.

Railway authorities consider males and transgender individuals as senior citizens at the age of 60. While females qualify at age 58. Previously, these concessions were applicable across all mail and express trains, including prestigious services like Rajdhani, Shatabdi, Duronto, and Jan Shatabdi trains.

The discontinuation of rental concessions has posed financial challenges for senior citizens. Nevertheless, reports and responses to RTI queries have indicated that this decision has resulted in significant financial gains for Indian Railways. RTI disclosures revealed that the discontinuation of concessions generated additional revenue amounting to ₹2,242 crore. During the affected period, the railway authorities did not provide these concessions to around 8 crore senior citizens, including approximately 4.6 crore men, 3.3 crore women, and 18,000 transgender individuals.

Pressure to bring back concessions

Since the conclusion of the COVID-19 crisis, there has been mounting pressure from senior citizens to reinstate rental concessions. Although raised in Parliament, the government has not yet signaled any intent to reinstate these benefits, possibly due to concerns over increased financial burdens.

Last December, Railway Minister Ashwini Vaishnav highlighted that providing subsidies to passengers across all categories has incurred substantial expenses for Indian Railways. In the financial year 2019-20 alone, the railways spent ₹59,837 crore on ticket subsidies, amounting to an average discount of 53% on ticket fares across all passenger categories. Furthermore, the government has extended additional subsidies to various segments, including four categories of disabled passengers, eleven categories of patients, and eight categories of students.

Looking ahead, Budget 2024 will be pivotal in determining whether the government decides to reinstate concessions for senior citizens. Beyond its fiscal implications, this decision carries profound social significance, reflecting priorities in elder care, social equity, and responsible governance. As India prepares for upcoming elections in Maharashtra and Haryana later this year, following the budget announcement on July 23, speculation suggests that populist measures could influence the government’s decision to reinstate rental concessions for senior citizens.