Union Budget 2022: Roads get lion's share of allocation in FY23

Investments in NHAI were more than doubled to Rs 1.34 trillion, against Rs 65,060 crore in the revised estimate for FY22

With a push for economic revival through infrastructure growth and financing, Finance Minister Nirmala Sitharaman provided for further spending on seven engines of growth -- roads, railways, airports, ports, mass transport, waterways, and logistics infrastructure through the PM Gati Shakti programme, a Rs 100-trillion plan for multi-modal connectivity.

However, it was the roads sector that got the lion's share of the allocation in the budget estimate for 2022-23 (FY23).

Investments in National Highways Authority of India (NHAI) were more than doubled to Rs 1.34 trillion, against Rs 65,060 crore in the revised estimate for FY22. Budget estimate for FY22 was Rs 57,350 crore.

Mainly, the addition of 25,000 km of roads in FY23 under the Gati Shakti plan led to the rise in allocation for the sector. As per the plan, around Rs 20,000 crore will be mobilised for this through innovative ways of financing to complement public resources. 

In comparison, FY20 reported 10,237 km of road construction at 28 km per day, and it was 13,327 km in FY21 at a rate of 36.5 km per day.

"All seven engines will pull forward the economy in unison. These engines are supported by the complementary roles of energy transmission, IT communication, bulk water and sewerage, and social infrastructure," she said. This will be powered through 'clean energy and Sabka Prayas' – the efforts of the Centre, the state governments, and the private sector, she said. 

Except for the Railways, no other sector among the seven saw a considerable rise.

The Railways saw a 14 per cent rise in capex to Rs 2.45 trillion. The central schemes in aviation saw an almost twofold rise on account of Air India's debt payment that was transferred to its special purpose vehicle (SPV).