Railways Cuts Costs Ahead of 8th Pay Commission's Financial Impact

• Indian Railways is cutting costs across maintenance, procurement, and energy in anticipation of the 8th Pay Commission.
• The 8th Pay Commission was constituted in October 2025, with its Terms of Reference notified on November 3, 2025.
• Recommendations from the commission are widely expected to be implemented retrospectively from January 1, 2026.
• Railways face financial pressure, reporting an operating ratio of 98.90% in 2024-25.
• Decisions regarding the timing and funding of the 8th Pay Commission will be made by the government at a later stage.

Why It Matters: Railways' cost cuts for 8th Pay Commission signal future financial strain for govt.