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Infrastructure Sector Budget 2023 Expectations: With the increasing focus of the government on the development of highways and expressways in the country, the road and highways ministry is likely to get budgetary support in the upcoming budget, which could be around 20 per cent higher than the previous budget.
Budgetary allocation will be Rs 2.20 lakh crore or more
Sources said that the upcoming budget for capital and revenue expenditure in the financial year 2023-24 is likely to have gross budgetary support in the range of Rs 2.20 lakh crore or more. In the last budget (FY 2022-23), the Center had earmarked about Rs 1.99 lakh crore as Gross Budgetary Support (GBS) for the Ministry of Roads and Highways. Government data about the Centre’s budgetary allocation for the Ministry of Roads and Highways has pointed to a trend of increasing allocation to the ministry, underscoring the importance being given to the expansion and improvement of the national highway network across the country.
Know the report card of the last budget
The Centre’s budgetary allocation to the Ministry of Road, Transport and Highways was Rs 59,636 crore in 2017-18 and registered a year-on-year jump, reaching Rs 1,99,108 crore in 2022-23. The ministry had set a target of building 12,200 km of national highways during 2022-23. Till November, 2022, 4,766 km has been constructed.
construction costs have also increased
Officials said the pace of construction was affected due to adverse weather and the ministry may miss the target of completing 11,000 km of national highways by March 2023. He said higher budgetary allocation in the upcoming budget is necessary to help the ministry meet the target amid rising interest expenses and rising land acquisition costs. Besides, the cost of construction has also gone up significantly in the last few months due to rising fuel cost and all these factors demand higher allocation.
NHAI will get more funds
The National Highways Authority of India (NSAI), the highway construction agency responsible for the development of highways, was allocated Rs 1,34,015 crore in 2022-23, which is 100 per cent more than the revised estimate for 2020-21. Sources claimed that about 20 to 30 per cent more funds are likely to be allocated to NHAI in this budget. NHAI’s expenditure includes funds for umbrella highway scheme, Bharatmala project, construction of roads and bridges and some other components.
More money will come for new roads
The government’s ambitious road infrastructure plan Bharatmala Pariyojana Phase-I involves the development of about 24,800 km of NH network such as economic corridors, inter-corridors and feeder roads, improving national corridor efficiency, border and international connectivity roads, coastal and port connectivity roads , expressways as well as the remaining 10,000 km of roads under NHDP.
Emphasis on Bharatmala project
Apart from the development of highways and expressways in the country, which facilitate logistics efficiency to the Indian economy, 35 Multi Modal Logistics Parks (MMLP) are to be developed. These will act as major cargo consolidation and distribution hubs. Sources said the implementation of the Bharatmala Pariyojana with 35 MMLP in the country is expected to further increase the logistics efficiency.
Budget expected to improve road connectivity across the country
Officials said that the upcoming budget is expected to improve road connectivity across the country. Bharatmala Pariyojana Phase-I was approved for a length of 34,800 km with an outlay of Rs 5.35 lakh crore. By December 2022, work had been awarded for about 23,500 km and about 11,400 km of length had been constructed. The remaining projects have been targeted to be awarded by the financial year 2024-25. The expenditure under Roads and Bridges includes development of NH, projects related to expressways, increase in number of lanes under various projects and development of road connectivity in Left Wing Extremism affected areas. The allocation for roads and bridges in 2022-23 is Rs 64,573 crore.
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