Practice of separate Railway Budget start in India

When was the practice of a separate Railway Budget started in India?

A) 1905                                                                     B) 1920
C) 1924                                                                D) 1947

EXPLANATION

  • The practice of presenting a separate Railway Budget in India began in the year 1924.

  • This system was started on the recommendation of the Acworth Committee (headed by Sir William Acworth) in 1921.

Why was a separate Railway Budget introduced?

  • At the time, the railways accounted for a significant portion of India’s revenue and expenditure.

  • It was felt that a separate, detailed budget was needed to ensure better financial planning and management of railways.

  • So, from 1924 onwards, the Railway Budget was presented separately from the General Budget.

 End of Separate Railway Budget:

  • The practice continued for 92 years, until 2016.

  • In 2017, the Government of India merged the Railway Budget with the Union Budget to streamline the budgeting process.

 Summary of Options:

Option Description
A) 1905 ❌ No separate railway budget existed yet
B) 1920 ❌ Acworth Committee was formed, but budget not yet separate
✅ C) 1924 ✔️ First separate Railway Budget presented
D) 1947 ❌ India gained independence, but separate railway budget already existed

✅ Therefore,

Correct Answer: C) 1924.

Practice of separate Railway Budget start in India