(Photo: Aniruddha Chowdhury/Mint)
(Photo: Aniruddha Chowdhury/Mint)

Budget 2020: Road ministry seeks higher budget allocation for FY21

  • 'We expect a hike in budgetary allocation by 8,000-10,000 crore in the upcoming financial year,' says a ministry official
  • For the current financial year, the budget allocation to the ministry of road transport and highways increased by a significant 6%

New Delhi: The Road Transport and Highways ministry has sought a hike in budgetary allocation by 8,000-10,000 crore for the financial year 2020-21, a senior government official said on Wednesday.

“We expect a hike in budgetary allocation by 8,000-10,000 crore in the upcoming financial year. But we do have enough funds and we have received funds from banks also this year," a senior government official said. Union Budget will be presented on 1 February.

Higher budget allocation towards building roads and highways is an indication of the government’s focus on infrastructure creations, which is expected to have a multiplier effect on the country’s economic growth which has hit a six-year low.

For the current financial year, the budget allocation to the ministry of road transport and highways increased to 83,016 crore in 2019-20 from 78,626, rising by a significant 6%.

Out of this, the national highways authority (NHAI) has been allocated 36,691 crore in the current financial year from budgetary support. However, the government wants the national highways authority (NHAI) to redouble efforts through other fund-raising routes via asset monetisation by opting for toll-operate-transfer (TOT) model and infrastructure investment trusts (InVITs). The highways authority will borrow from the markets to raise as much as 75,000 crore.

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