Boosting Roads: Enhanced Budget for Transport Infrastructure

The government has increased the budget allocation for the road transport and highways ministry to Rs 2,873,33.16 crore for 2025-26, a 2.41% rise from the current year. The National Highways Authority of India (NHAI)'s funding also rose, while measures were taken to manage their cumulative debt.

The government on Saturday announced a heightened budget allocation of Rs 2,873,33.16 crore for the road transport and highways ministry for the fiscal year 2025-26. This represents a 2.41% increase from the Rs 2,805,18.80 crore allotted in the current financial year, signaling a commitment to bolstering infrastructure development.

Finance Minister Nirmala Sitharaman simultaneously declared an upsurge in funds allocated to the National Highways Authority of India (NHAI), raising it to Rs 1,878,03 crore compared to last year's Rs 1,693,71 crore. This increase is intended to support ongoing and new highway projects essential for connectivity and economic growth.

While addressing the debt management for NHAI, the budget made no fresh borrowings provision for the upcoming year, aiming to mitigate the total debt, which initially stood at Rs 3.35 lakh crore at the start of the fiscal year and was reduced to Rs 2.76 lakh crore by the end of the third quarter of FY25.