The Ministry of Road Transport and Highways (MoRTH) has received a boost in funding, with the Union Budget allocating approximately Rs 2.78 lakh crore for 2024-25, a 2.8 per cent increase from the previous year’s allocation of Rs 2.7 lakh crore.
The higher budgetary allocations will be necessary to facilitate the development of additional highways and expressways across the country. This increase is particularly vital amidst the challenges posed by rising interest expenses and escalating land acquisition costs.
Presenting the interim Budget 2024-25, FM Finance Minister Nirmala Sitharaman on February 1 did not mention the total proposed outlay to MoRTH, but this was reflected in the Budget documents released later after her speech.
The government had set a target of 13,000 km and 13,800 km of highway construction in 2022-23 and 2023-24, but the speed of construction was affected by unfavourable weather conditions and elections in many states.
The ministry is likely to complete the construction of 11,000 km of national highways this financial year after constructing 10,993 km of highways in FY23, according to officials from MoRTH.
Even though the budget speech itself didn’t mention a broad allocation towards PM Gati Shakti, the government allocated Rs 11.1 lakh crore as capital expenditure for the next fiscal year.
This is a rise of 11.1 per cent when compared to 2023-24’s budget estimate of Rs 10 lakh crore.
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Budget 2024: Road ministry’s allocation hiked by 2.8 per cent to Rs 2.78 lakh crore
