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.