Union Budget 2026: Road Transport Ministry Allocation Rises to Above ₹3.09 Lakh Crore for FY27

The Union Budget 2026–27 has increased funding for the Ministry of Road Transport and Highways, underlining the Centre’s continued push on highway development and infrastructure strengthening across the country. 

Higher Outlay for Road Transport Ministry 

The government has allocated ₹3.09 lakh crore to the road transport ministry for FY27, marking an increase of about 8% compared with the ₹2.87 lakh crore provided in the current financial year. The higher provision reflects sustained priority for highway construction, upgrades, and connectivity projects. 

Alongside this, the Budget has also enhanced support for the National Highways Authority of India (NHAI), with its allocation proposed at ₹1.87 lakh crore, up from ₹1.70 lakh crore in the previous year. 

NHAI Debt Reduction Plan 

As per news report, NHAI is working to bring down its total outstanding debt to below ₹2 lakh crore by the end of the current financial year in March.  

The authority’s borrowings had earlier touched a peak of ₹3.5 lakh crore in FY22 and were estimated at ₹2.35 lakh crore as of December 31, 2025. 

The planned reduction indicates a parallel focus on improving the highway authority’s balance sheet while continuing capital expenditure on road projects. 

Read More: Budget 2025 vs 2026: How India’s Fiscal Strategy Has Evolved! 

Conclusion 

The revised allocations signal a dual strategy continued highway expansion alongside tighter financial management at NHAI keeping road infrastructure at the centre of the government’s capital spending agenda. 

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