Union Budget: NHAI to keep off bond market in 2022-23

Recognising the huge debt burden of NHAI at Rs 3.38 trillion, the finance ministry has given it nil space to borrow any more in the FY23 Budget

Recognising the huge debt burden of the National Highways Authority of India (NHAI) at Rs 3.38 trillion, the finance ministry has given it nil space to borrow any more in the FY23 Budget. Instead to finance the humongous plan of roadways expansion the government has decided to take on the responsibility itself.

This has significance for the bond markets, too. They will have to reckon with the absence of NHAI in the next financial year. The move opens up an equivalent space for the Centre to finance its own borrowing.

This is also a crucial financial manoeuvre the government shall undertake to