Government Plans 5-6% Increase in Highway Budget for FY26
The Indian government is anticipated to increase the budget allocation for highways by 5-6% in the fiscal year 2025-26 (FY26), following a subdued performance in the current fiscal year. This modest hike aims to revitalize infrastructure development and address the challenges faced by the highway sector.
In the ongoing fiscal year 2024-25 (FY25), the Ministry of Road Transport and Highways (MoRTH) has experienced slower project execution, a decline in project awards, and underutilization of allocated funds. These factors have contributed to the government’s decision to propose a nominal increase in the Gross Budgetary Support (GBS) for the upcoming fiscal year.
The anticipated budgetary enhancement is part of a broader strategy to stimulate private capital expenditure in the highway sector. By encouraging private investment, the government aims to augment infrastructure development, improve road connectivity, and boost economic growth.
Despite the challenges encountered in FY25, the government remains committed to its infrastructure development agenda. The proposed budget increase reflects this commitment, with a focus on enhancing the efficiency and effectiveness of highway projects across the country.
The final budget allocations will be detailed in the upcoming Union Budget, where the government is expected to outline its infrastructure development plans and financial commitments for FY26. Stakeholders in the highway sector are advised to stay informed about these developments to align their strategies with the government’s infrastructure agenda.
