Budget 2024: Will Senior Citizens See The Return Of Railway Fare Concessions?

Finance Minister Nirmala Sitharaman is set to present the first budget of the Modi 3.0 government on July 23. The upcoming budget is highly anticipated by the industry, taxpayers, and the general public. Senior citizens are particularly hopeful that the discounts on train tickets, which were previously available to them, will be restored. This issue has been raised repeatedly, especially as the budget approaches. It's worth noting that the discount for senior citizens on train tickets has been discontinued since the COVID-19 pandemic began.

On March 20, 2020, the Railway Ministry withdrew concessions in train fares offered to senior citizens after a countrywide lockdown was announced due to COVID-19.

Senior Citizens Used to Get Discounts on Train Tickets

Before the pandemic, senior citizens and women were entitled to discounts on train tickets. This benefit was discontinued in March 2020. Female senior citizens received a 50 percent discount on train tickets, while male and transgender senior citizens received a 40 percent discount. This discount applied to all express and mail trains, including Rajdhani and Shatabdi services.

Since the withdrawal, senior citizens have had to pay full fare, similar to other passengers. According to the Railways, individuals aged 60 and above for men and transgender persons, and 58 and above for women, qualify as senior citizens.

How Much Did Indian Railways Earn After the Withdrawal of Concessions?

The Railways have significantly benefited from discontinuing the discount given to senior citizens on train tickets. According to an RTI disclosure, between April 1, 2022, and March 31, 2023, the Railways did not provide concessions to approximately 8 crore senior citizens. During this period, the Railways generated an additional revenue of Rs 5,800 crore from senior citizens, which includes an extra Rs 2,242 crore earned from the end of the subsidy.

Questions regarding the restoration of concessions for senior citizens have been raised on various platforms, including both houses of Parliament. However, Railway Minister Ashwini Vaishnaw has not provided a direct reply, maintaining that the Indian Railway offers a 55 percent concession on train fares to every train passenger.

"If a train ticket to a destination costs Rs 100, the Railway is charging only Rs 45. It is giving Rs 55 concession," Vaishnaw said during a press briefing in January 2024.