Budget 2026: Roads and highways allocation rises to Rs 3.10 lakh crore

The Centre has increased allocation for the Ministry of Road Transport and Highways (MoRTH) to Rs 3.10 lakh crore in the Union Budget 2026-27, up from Rs 2.87 lakh crore in the Budget Estimates of the previous year.

The National Highways Authority of India (NHAI) was allocated Rs 1.87 lakh crore for FY27. The funds will be used for the development of national highways, expressways and greenfield access-controlled corridors, supported through budgetary resources, toll-based funds and highway monetisation mechanisms.

Allocation for road works, which includes national highway construction, border roads, logistics parks, ropeways and last-mile connectivity projects, has been raised to Rs 1.22 lakh crore in FY27, compared with Rs 1.16 lakh crore in 2025–26 (BE).


The government has continued to emphasise maintenance of existing highway assets, with Rs 5,020 crore allocated for the maintenance of national highways through the Central Road and Infrastructure Fund (CRIF), higher than the previous year.

India’s roads and highways sector has remained a central pillar of the government’s infrastructure strategy, backed by a sharp rise in public spending over the past decade. The Ministry of Road Transport and Highways has seen its expenditure grow nearly six-fold during this period, supporting a close to 60% expansion of the national highways network to over 1.46 lakh kilometres.

Alongside new capacity creation, recent budgets have also placed greater emphasis on maintenance of existing national highways, reflecting the need to improve road quality, safety and asset life as the network matures.