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Railway Budget 2024: Train Fare Concessions For Elderly And Govt’s Dilemma

Before the 2020 pandemic, the Indian Railways offered a 50 per cent and 40 per cent discount on train fares to female senior citizens and male and transgender senior citizens, respectively.

July 10, 2024
July 10, 2024
Train Fare Concessions

Train Fare Concessions

Ahead of Union Finance Minister Nirmala Sitharaman’s FY2024-25 Budget presentation in parliament on July 23, many people are wondering whether the railways will reinstate the train fare concessions for senior citizens. Scores of people had benefited from the reduced fare for travelling across the country before the railways discontinued it during the COVID-19 pandemic, which affected millions of senior citizens who relied on cheap travel.

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Before discontinuing the practice in March 2020, the Indian Railways provided a 50 per cent and 40 per cent discount on train fares to females aged 58 and above and male and transgender senior citizens aged 60 and above, respectively. After these benefits were withdrawn, they were compelled to pay the full fare, as in the case of other passengers. However, this decision has positively impacted the railway’s fiscal health since it led to the collection of more revenue.

 

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Whether this financial dividend for the railways has come at the cost of senior citizens’ welfare and whether it is worth it has been closely debated between pro-concession supporters and those against it. Those who favour concessions claim the social advantages the older people receive due to fare concessions far exceed the revenue gains.

When asked about the possibility of reintroducing concessions for senior citizens, ex-railway minister Ashwini Vaishnaw told the media that the Indian Railways already provides all customers with a 55 per cent discount on train fares. The Financial Express reported that earlier this year, in response to an RTI application, the Indian Railways maintained that the revocation of the benefit led to the generation of nearly Rs 2,242 crore additional revenue from some 15 crore senior citizens in the fiscal year 2022-23.

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Finally, it appears that railway concessions for the elderly are more than just a policy issue, at least in the opinion of certain sections of the populace, who say it’s about the government’s social responsibilities and priorities. Therefore, they believe the Budget 2024-25 provides an important chance for the government to demonstrate its commitment to elder care, social fairness, and responsive governance.

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