Indian Railways Intensifies Cost Control Before 8th Pay Commission

• Indian Railways is intensifying cost controls ahead of the 8th Pay Commission's recommendations.
• The 8th Pay Commission, set up in January 2025, could increase staff costs by up to Rs 30,000 crore.
• Railways plans to absorb higher expenses through efficiency gains, internal accruals, and increased freight revenues.
• Measures include targeted cost controls in maintenance, procurement, energy use, and full electrification for Rs 5,000 crore annual savings.
• Staff cost allocation for FY 2025-26 has increased to Rs 1.28 lakh crore, with pension provisions also rising.

Why It Matters: Railways' financial planning impacts future service quality and public spending.