Indian Railways cuts costs to absorb 8th Pay Commission wage bill

• Indian Railways is implementing cost-cutting measures across maintenance, procurement, and energy use.
• This is a pre-emptive move to absorb the higher wage and pension bill expected from the 8th Central Pay Commission.
• The 8th Pay Commission's recommendations are likely to be implemented from January 1, 2026.
• Railways plans no new short-term borrowing and projects a Rs 15,000 crore rise in freight earnings by 2027-28.
• The strategy aims to prevent a financial squeeze similar to what occurred after the 7th Pay Commission.

Why It Matters: Railways cuts costs now to absorb future wage hikes, ensuring stable public transport.