The Prime Minister Dr Manmohan Singh has called the railway budget a forward looking one. Finance Minister Pranab Mukherjee hailed the Railway Budget saying if the exercise succeeds in cutting operating costs, it would be a major improvement.

The political parties have offered mixed reactions to the Railway Budget.
The Congress welcomed the Rail Budget .Talking to reporters outside Parliament, party leader Ms Girija Vyas said the proposed rise in passenger fares is very minimal and is not going to have any impact on the common man.
The Trinamool Congress demanded withdrawal of rail fare hike.

The West Bengal Chief Minister and Trinamool Congress Supremo, Ms. Mamata Bannerjee said that her party is against the increase in passenger fares.
The BJP, on the other hand, termed the Rail budget as anti-people. Senior Party leader, Anant Kumar said that the hike in freight and passenger fare will largely impact the common man.

Senior CPIM leader Basudev Acharia opposed the move saying that it is not proper to hike the fares the way it has been done. Former Railway Ministers Lalu Prasad Yadav and Ram Vilas Paswan also expressed disappointment over the hike in passenger fare.

The Railway Minister Mr. Dinesh Trivedi justified his proposals in the new rail budget. Mr Trivedi told AIR that he has taken a conscious decision on the issue.

The Railway Budget 2012-13 was presented by the Railway Minister in the Parliament yesterday proposed moderate hike in passenger fare, introduction of 75 new express trains, and construction of new lines in underdeveloped parts of the country.

Modernisation of railways, a new body to ensure passenger safety and disaster management, setting up of more railway lines and infrastructure through Public private partnership, better passenger amenities, concessions for patients suffering from serious ailments and setting up of green railway stations were some of the highlights of the rail budget .