The railways will enjoy an increase of around 40 per cent financial assistance from the government in the upcoming budget, sources said.

According to sources, the union finance ministry is considering a Gross Budgetary Support (GBS) allocation of Rs 34,000 crore for the state-owned public transporter. The figure Rs 10,000 crore more than what the transporter had been allocated last year.

However, the reported GBS figure is still down from what the railways had demanded for - Rs 38,000 crore.

The public transporter is said to have managed to get higher financial assistance from the centre by taking measures to prop up its financial state. It may be noted here that the transporter recently hiked passenger fares.

Sources also said that, with the bigger GBS, railways minister Pawan Kumar Bansal is preparing to table a plan outlay of nearly Rs 70,000 crore - the biggest ever presented by the transporter.

The railways ministry has plans to raise the remaining amount by way of internal resources, railway safety fund, market borrowings and extra-budgetary support.

The government-run transporter's deficit in the passenger segment has jumped Rs 1,059 crore in 2004-05 to Rs 19,964 crore in 2010-11, which represents a hike of 18 per cent per annum. The deficit is likely to soar to Rs 23,000 crore in the current financial year.