KEY HIGHLIGHTS
- Union Budget 2026 raises road and highways funding to Rs 3.09 lakh crore
- Higher budgetary support for NHAI and CRIF-backed state roads aims to accelerate project execution
- More budget allocation will lead to less loan burden and more asset utilisation
The Union Budget 2026-27 has once again underlined the government's belief that roads are not just infrastructure assets, but economic accelerators. With an allocation of Rs 3.09 lakh crore for the road transport and highways sector, the Budget sends a strong signal that India's next phase of growth will ride on expressways, upgraded national highways, and more efficient tolling systems. At a time when logistics efficiency, interstate mobility, and regional economic balance are increasingly critical, this outlay is less about headline numbers and more about what it enables on the ground: faster project execution, healthier finances for the National Highways Authority of India (NHAI), and a renewed push for expressway-led development across states. Read on to find out its key features and how the rivals fare against it in the class, but before that, make sure to join the 91wheels WhatsApp Community, specifically curated for petrolheads like us to keep up with the latest news and automotive updates.
Also Read- Sub 4-Meter 'Mini' Renault Duster In Works- Kylaq, Nexon Rival
Union Budget 2026: A Closer Look At The Numbers
For FY27, the road transport and highways ministry has been earmarked Rs 3.09 lakh crore, higher than the revised estimate of approximately Rs 2.87 lakhs crore in the current financial year. The increase of nearly Rs 22,000 crore signals sustained government confidence in infrastructure spending as a growth multiplier. . Out of the total allocation, capital outlay on roads and bridges stands at around Rs 2,75,772 crore, up from nearly Rs 2,52,533 crore in the revised estimates for FY26. This ensures that large-scale construction projects, expressways and highway widening programmes remain adequately funded despite fiscal consolidation pressures elsewhere.
A significant portion of the increased allocation is directed towards the National Highways Authority of India (NHAI), which remains the primary agency responsible for developing and managing India's national highway network. Budgetary support for NHAI has been raised to Rs 1.87 lakh crore in FY27, compared to Rs 1.7 lakhs crore in the revised estimates for FY26. This increase will be used to fund new highway construction, expand expressway networks, and develop greenfield corridors in high-growth regions.
Importantly, the additional funding also supports NHAI's ongoing efforts to improve its financial health. Over the past decade, aggressive highway expansion was accompanied by rising borrowings. With higher direct budgetary support now available, NHAI can moderate fresh debt, improve cash flows, and focus on sustainable long-term project financing. The authority will continue to supplement budgetary funds through toll revenues and highway asset monetisation via infrastructure investment trusts. Together, these funding streams are expected to provide greater stability to highway development over the long term.
Focus Shifts To Maintenance Of Existing Highways & Thier Expansions
One of the more notable aspects of Budget 2026 is the increased focus on maintenance of existing highways, acknowledging that rapid network expansion must be matched by adequate upkeep. Maintenance of national highways financed from CRIF has been allocated Rs 5,020 crore for FY27, compared to Rs 4,915 crore in the revised estimates for the current year.
At the heart of Union Budget 2026 roads strategy is the continued expansion of national corridors and expressways, which are increasingly seen as economic arteries rather than mere transport routes. High-speed corridors reduce travel time, lower fuel consumption, and improve logistics reliability, making Indian manufacturing and agriculture more competitive. The increased allocation allows ongoing expressway projects to maintain momentum while enabling preparatory work for future corridors, including land acquisition, detailed project reports, and environmental clearances.
This will ultimately help push the projects such as the Ganga Expressway in Uttar Prades which spans a length of 594 km, 6-lane (expandable to 8) greenfield project connecting Meerut to Prayagraj and is set to become operational in early 2026, linking 12 districts, or the Nalanda connectivity and Ram Janki Circuit that spans two projects in Bihar, which will ultimately lead to a cut down in travel times signifiacntly, boosting economy around the adjacent areas as well as nationally.
Verdict
The Union Budget 2026 strengthens and refines an approach that has been evolving for over a decade. By raising overall allocations, increasing direct support for NHAI, boosting CRIF funding for states, and placing greater emphasis on maintenance and safety, the government has adopted a more balanced view of road development. As India's highway network grows larger and more complex, such a balance will be essential. New expressways seen alongside better-maintained existing roads, safer travel conditions, and stronger state-level connectivity can ensure that road infrastructure continues to deliver economic and social returns.
