Budget 2026: Road transport allocation climbs to Rs 3.09 lakh crore for FY27

The government on Sunday allocated Rs 3.09 lakh crore to the Ministry of Road Transport and Highways for 2026-27, an increase of roughly 8% over the Rs 2.87 lakh crore earmarked in the current fiscal year.

Finance Minister Nirmala Sitharaman, presenting the Union Budget, also proposed raising the allocation for the National Highways Authority of India (NHAI) to Rs 1.87 lakh crore, up from Rs 1.70 lakh crore last year.

A senior government official said NHAI plans to bring its total debt below Rs 2 lakh crore by the end of the current financial year in March. The highway authority’s debt had peaked at Rs 3.5 lakh crore in 2021-22 and stood at Rs 2.35 lakh crore as of December 31, 2025.


The increased funding signals the government’s continued focus on expanding and upgrading national highways while strengthening the financial health of NHAI.