The Ministry of Road Transport and Highways formulates and administers policies for road transport, and transport research.[i]  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 2025-26, and key issues in the sector.

Overview of finances

The Ministry is estimated to spend Rs 2,87,333 crore in 2025-26.  This is 2% higher than the revised estimates for 2024-25 (Rs 2,80,519 crore).  Major allocations are towards NHAI and expenditure on roads and bridges (see Table 1). 

Table 1: Major allocations for the Ministry of Road Transport and Highways (in Rs crore)

	Actuals 23-24	RE 24-25	BE 25-26	% change (BE over RE)
NHAI	1,67,398	1,69,371	1,70,266	1%
Roads and Bridges	1,08,678	1,10,576	1,16,292	5%
Others	436	572	775	36%
Total	2,75,986	2,80,519	2,87,333	2.4%

Note: BE – Budget Estimate; RE – Revised Estimate; “Total” includes recoveries which have not been shown in the table; “Others” covers establishment expenditure of the central government and allocations towards road transport and safety.
Sources: Expenditure Profile, Ministry of Road Transport and Highways, 2025-26; PRS. 

NHAI had increased its market borrowings from 2017-18 to finance the Bharatmala Pariyojana.[ii]^,[iii]  NHAI services its debts through a combination of toll revenue and asset monetisation.3  NHAI has halted its borrowings since 2022-23 (see Figure 2).3  As of July 25, 2024, the total outstanding debt of the NHAI stood at Rs 3,35,173 crore.3 

Table 2: Expenditure of the Ministry of Road Transport and Highways (in Rs crore)

	2023-24	2024-25 RE	2025-26 BE	% change (RE to BE)
Revenue	12,094	8,038	15,092	88%
Capital	2,63,912	2,72,481	2,72,241	0%
Total	2,75,986	2,80,519	2,87,333	2.4%

Note: BE – Budget Estimate; RE – Revised Estimate.
Source: Expenditure Budget, 2025-26, Ministry of Road Transport and Highways; PRS.

Capital expenditure for 2025-26 is similar to the revised estimates for 2024-25.  Revenue expenditure is 88% more than the revised estimate for 2024-25 (162% more than the budget estimate for 2024-25).

Utilisation of funds

Over the last few years, fund utilisation of the Ministry has been over 100 percent.  In 2023-24, the Ministry spent Rs 2,75,986 crore against a budget of Rs 2,70,435 crore.  As per the revised estimates for 2024-25, the expenditure is expected to be 1% more than the budget.