Many countries offersubsidies to their railways because of the social and economic benefits that it brings. The economic benefits can greatly assist in funding the rail network. Those countries usually also fund or subsidize road construction, and therefore effectively also subsidize road transport. Rail subsidies vary in both size and how they are distributed, with some countries funding the infrastructure and others funding trains and their operators, while others have a mixture of both. Subsidies can be used for either investment in upgrades and new lines, or to keep lines running that create economic growth.

Rail subsidies are largest in China ($130 billion), Europe (€73 billion) and India ($35.8 billion), while the United States has relatively small subsidies for passenger rail with freight not subsidized.

Railways channel growth toward dense cityagglomerations and along their arteries. These arrangements help to regenerate cities, increase revenue from localtaxes,^[1] boosthousing values, and encouragemixed use development. By contrast, a policy ofhighway expansion, which is more typical in the U.S., promotes the development ofsuburbs at the periphery, contributing to increasedvehicle miles traveled,carbon emissions, development ofgreenfield spaces, and depletion ofnatural reserves.^[2][3]

Europeandevelopment economists have argued that the existence of modern rail infrastructure is a significant indicator of a country's economic advancement: this perspective is illustrated notably through theBasic Rail Transportation Infrastructure Index (known as BRTI Index).^[4]

Total EU rail subsidies amounted to €73 billion in 2005.^[6]

Country	Subsidy in billions of Euros	Year	Billion passenger-km travelled in 2014[7]
Germany	17.0	2014[8]	79.3
France	13.2	2013[9]	83.9
Italy	7.6	2012[10]	39.7
Switzerland	5.8	2012[11]	18.4
Spain	5.1	2015[12]	24.5
United Kingdom	9.2	2016[13]	65.1
Belgium	2.8	2012[14]	10.8
Netherlands	2.5	2014[15]	17
Austria	3.7	2021	11.4
Denmark	1.7	2008[5]	5.8
Sweden	1.6	2009[16]	6.1
Poland	1.4	2008[5]	11.9
Ireland	0.91	2008[5]	1.7

Note that several operators that do not receive subsidies also exist, including virtually all long-haul and high-speed services in France and Germany.^{[citation needed]}

In 2015, total domestic rail spending byChina was $128 billion and was likely to remain at a similar rate for the rest of the country's next Five Year Period (2016-2020).^[17] A planned 8,000 kilometres (about 5,000 miles) of track will be added domestically, with a goal of better connecting existing domestic track with other foreign railway systems.

TheIndian railways are subsidised by around Rs 2.4trillion ($35.8 billion), of which around 60% goes to commuter rail and short-haul trips.^[18][19][20]

Current subsidies forAmtrak (passenger rail) are around $1.4 billion. The rail freight industry does not receive direct subsidies.

In total,Russian Railways receives 112 billion rubles (around US$1.5 billion) annually from the government.^[21]

The privatizedrail network in Japan requires few subsidies. The three biggest companies,JR East,JR Central andJR-West (which account for 60% of the passenger market) receive no state subsidy.^[22]

• UK Rail Finance 2014-15

• Rail transport
• Subsidies

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