Budget 2026: Highways Outlay Likely To Rise Marginally To ₹2.90 Lakh Crore

As per news reports, the government may announce a modest increase in spending on the highways sector in Union Budget 2026. The allocation is expected to reflect a cautious approach, with greater focus on private investment and asset monetisation rather than a sharp rise in direct budgetary support.

Highways Allocation Seen Rising By 2–3%

According to news reports citing government sources, the highways sector may receive an allocation of around ₹2.90 lakh crore in Union Budget 2026. This would translate into a 2–3% increase over the previous year’s allocation.

In Union Budget 2025, the Ministry of Road Transport and Highways was allotted ₹2.87 lakh crore. Slower utilisation of funds during FY25 is said to be a key reason behind the limited scope for a higher increase this year.

Focus Shifts Towards Private Capital

Instead of significantly raising budgetary spending, the government is expected to place stronger emphasis on mobilising private capital to fund highway expansion. As per news reports, this strategy aims to reduce pressure on public finances while continuing infrastructure development.

To support this approach, the road transport ministry has identified a 13,400-kilometre project pipeline to be developed under the public-private partnership (PPP) model. These projects are estimated to involve investments worth ₹8.3 lakh crore over the next three years.

Policy Push To Speed Up Project Execution

The upcoming Budget may also include policy and procedural measures to improve execution timelines for highway projects. As per reports, the focus could be on easing clearances and improving processes under frameworks such as Build-Operate-Transfer (BoT), Toll-Operate-Transfer (ToT) and PPP models.

Such measures are expected to make projects more attractive for long-term investors and help accelerate on-ground development.

Asset Monetisation Through NHAI InvIT

In line with the government’s asset monetisation strategy, NHAI’s Rajmaarg Infrastructure Investment Trust (InvIT) is likely to be listed during the current financial year, according to news reports.

The listing is expected to provide the National Highways Authority of India with an additional funding route, allowing it to raise capital without increasing direct budgetary outgo.

Read more: Infosys Q3 FY26 Earnings Results: Net Profit Slips Marginally, Revenue Growth Remains Strong.

Conclusion

As per news reports, Union Budget 2026 is likely to take a balanced approach towards highway development. While the allocation may rise marginally to around ₹2.90 lakh crore, the larger focus is expected to be on private participation, faster execution, and asset monetisation. This strategy aims to sustain infrastructure growth while keeping public spending under control.

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