The practice of a separate Railway Budget started in 1924 during the British rule in India. During those days, Railways was the largest industrial asset of the country and used to occupy a significant portion of the budgetary allocations (~75 to 85 %). Since the Railways then constituted such a large portion of the General Budget, it was recommended by the British officials to separate the Railways from the general budget solely for the purposes of better policy formulation and implementation.
Now the Railways constitute ~4% of the country's total General Budget allocations. However, the practice of presentation of a separate Railway Budget, two days before the General Budget is still continued majorly for political gains. Railways is called the lifeline of the nation and it has been said that the Railways present the true picture of India. Indian Railways directly influence the life of millions of Indians.
