Finance Minister Nirmala Sitharaman on February 1, 2024, presented the Interim Budget 2024-25, which saw a very slight increase in the budget allocation for the road sector as compared to the last year.
As we get closer to the presentation of the full Union Budget 2024-25 by Sitharaman, let’s take a look at the budget allocated to the road sector earlier this year.
In the Interim Budget, the government set aside Rs 2,78,000 crore for the Ministry of Road Transport and Highways, a jump of 2.7% as compared to the Rs 2,70,434 crore allocated in 2023-24. However, the revised allocation for the ministry for the fiscal year 2023-24 was Rs 2,76,351.45 crore. When compared to that, the new allocation was just 0.5% higher.
In the budget announced in 2023, the allocation increased by 35%, following a 70% hike the previous year.
Increase in Infrastructure expenditure
Sitharaman had also proposed to increase the outlay for infrastructure development by 11 per cent which will amount to Rs.11,11,111 crore, making up 3.4% of the GDP. She further stated that this increase in allocation reflected the significant multiplier effect of infrastructure development on economic growth and job creation.
As India makes great strides in the run for the largest road network in the world, with more plans for roadways, more budgetary allocation is expected in the upcoming budget.
India’s road network
According to data provided by the government in January 2024, India has approximately 66.71 lakh kilometers of road network, making it the second largest in the world.
The length of various categories of roads is as follows:
National Highways: 1,46,145 km
State Highways: 1,79,535 km
Other Roads: 63,45,403 km
The National Highway network in the country has seen a rise of approximately 60% from 91,287 km in 2014 to 1,46,145 km in 2023.
Bharatmala Pariyojana update
The Bharatmala Pariyojana focuses on optimising the efficiency of the movement of goods and people across the country. Phase 1 of the project was approved in October 2017. This phase focuses on filling vital infrastructure gaps through development of 34,800 km of National Highways.
The status of Bharatmala Pariyojana Phase 1 includes a total length of 34,800 km across 31 states and UTs, covering over 550 districts. Of this, as of January 5, 27,384 km have been awarded, and 15,045 km have been constructed. Phase 1 is to be completed by 27-28.