The ministry of road transport and highways (MoRTH) outlay was increased to Rs 3.09 lakh crore for financial year 2026-27, which is largely up 7.8 percent from the previous year.
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Moneycontrol01-02-2026, 15:43

FM Boosts Highway Development with Rs 3.09 Lakh-Crore Allocation in Budget 2026

  • Budget 2026 allocates Rs 3.09 lakh crore to the Ministry of Road Transport and Highways (MoRTH), a 7.8% increase from the previous year.
  • The increased funding aims to accelerate highway and expressway development despite rising interest rates and land costs.
  • Finance Minister Nirmala Sitharaman introduced a scheme to boost domestic manufacturing of high-value Construction and Infrastructure Equipment (CIE).
  • NHAI receives Rs 1.87 lakh crore, a 10% increase, with a strategy for higher budgetary support and zero market borrowings.
  • The ministry has monetized Rs 1.52 lakh crore through asset monetization and plans to raise an additional Rs 30,000 crore this fiscal.

Why It Matters: Budget 2026 significantly increases highway funding to accelerate infrastructure development and boost domestic manufacturing.

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