The Ministry of Road Transport and Highways formulates and administers policies for road transport, and transport research. It is also involved in the construction and maintenance of National Highways (NHs) through the National Highways Authority of India (NHAI), and the National Highway and Infrastructure Development Corporation Limited (NHIDCL). It deals with matters relating to road transport, safety, and vehicle standards, through the implementation of the Motor Vehicles Act, 1988. This note looks at the proposed expenditure of the Ministry for 2024-25, and key issues in the sector.
Overview of finances
The total expenditure of the Ministry in 2024-25 is estimated to be Rs 2,78,000 crore. This is 1% higher than the revised estimates for 2023-24. The highest expenditure (61% of the total expenditure) is towards NHAI. In 2024-25, NHAI has been allocated Rs 1,68,464 crore. NHAI has been sustaining a debt servicing burden due to increased borrowings in the past few years. As of June 30, 2023, NHAI’s total debt is Rs 3,42,086 crore.[1] It has not borrowed from the market since 2022-23.
Table 1: Major allocations for the Ministry of Road Transport and Highways (in Rs crore)
|
Actuals 22-23 |
RE |
BE |
% change |
|
|
NHAI |
1,41,661 |
1,67,400 |
1,68,464 |
0.6% |
|
Roads and Bridges |
75,821 |
1,08,520 |
1,09,093 |
0.5% |
Note: BE – Budget Estimate; RE – Revised Estimate.
Sources: Demand for Grants 2024-25, Ministry of Road Transport and Highways; PRS.
Capital expenditure for 2024-25 is estimated at Rs 2,72,241 crore. This is 3% more than the revised estimate for 2023-24. Revenue expenditure is estimated at Rs 5,759 crore. It is 51% lower than the revised estimate for 2023-24.
Table 2: Expenditure of the Ministry of Road Transport and Highways (in Rs crore)
|
2022-23 |
2023-24 RE |
2024-25 BE |
|
|
Revenue |
11,104 |
11,826 |
5,759 |
|
Capital |
2,05,986 |
2,64,526 |
2,72,241 |
|
Total |
2,17,089 |
2,76,351 |
2,78,000 |
Source: Expenditure Budget, 2024-25, Ministry of Road Transport and Highways; PRS.
Fund Utilisation
In the last few years, the Ministry has been spending more than the amount allocated to it at the budget stage. In 2022-23, the actual expenditure of the Ministry was 9% more than the budget estimates. The revised estimates for 2023-24 are expected to be 2% more than the budget estimates. Since 2012-13, the actual expenditure has grown at an annualised average rate of 26%.