The central government has reportedly cut the Railways budget by Rs 12,000 crore for this financial year, reported The Indian Express. It has also been advised to raise its own resources to meet its liabilities. The Railways had got its highest ever funding of Rs 40,000 crore in the last Union budget.

The Finance Ministry's latest decision to bring the funding down to Rs 28,000 crore comes three months after the Prime Minister's Office wrote to Railway Minister Suresh Prabhu regarding a lack of pace in the execution of work. The national transporter is already struggling with capital expenditure, decreased earnings and a huge salary bill, due to the Seventh Pay Commission proposals, said the report.

The Railways has decided to approach Prime Minister Narendra Modi for a solution ahead of this year's Rail Budget. It has also requested the Finance Ministry to share its burden of keeping fares low and carrying essential goods either cheap or even free of cost.