# CAG flags Rs 3,400 crore railway safety fund diverted

2026-08-15T01:55:25+00:00 | Governance | Indian Opinion Desk

Corroboration: 2 independent outlets

A CAG audit has found that Indian Railways diverted Rs 3,400 crore from the Rashtriya Rail Sanraksha Kosh (RRSK), a safety fund, to staff welfare and computerisation, reducing resources for critical safety work. The fund was envisaged at Rs 1,27,000 crore for 2017-25, but Railways contributed only 21.3 per cent of targeted internal resources, putting in Rs 5,324.62 crore against a target of Rs 25,000 crore. More than 20,000 safety works remain incomplete, leaving operations exposed to risks. Separately, Railways spent Rs 22,699 crore from gross budgetary support to repay lease charges to IRFC, a practice the CAG called unhealthy. Unsanctioned expenditure doubled to Rs 19,458 crore in FY25.

## Coverage

- businesstoday.in <https://www.businesstoday.in/india/story/railways-diverted-rs3400-crore-meant-for-train-safety-to-staff-welfare-computerisation-cag-549303-2026-08-14?utm_source=rssfeed>
- rediff.com <https://www.rediff.com/news/report/cag-audit-reveals-indian-railways-lease-repayment-on-wrong-track/20260814.htm>

Tags: CAG, Indian Railways, IRFC, railway safety, RRSK
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