Rs. 35000 Crore of GBS is sought by The Road Transport and Highways Ministry
This new budget from the new government will have quite a few demands from various ministries. The Road Transport and Highways Ministry has sought Rs.30,000-35,000 crore from the Finance Ministry as Budgetary support to implement various roadways projects. In 2013-2014 the Road Transport ministry had received Rs.22,890 crore as gross budgetary support (GBS).
There are other ways for the roadways ministry to raise funds. During the last fiscal, the National Highways Authority of India (NHAI) had raised Rs.8,000-9,000 crore through market borrowings. This took the total money (Government support plus borrowings) for the sector to Rs.30,890 crore.
The GBS for last year included around Rs.12,000 crore raised from the fuel cess, and Rs.5,000 crore through toll receipts. That means the taxpayers had paid about Rs.6,000 crore in this GBS. The cess on fuel and the toll revenues are counted as gross budgetary support as they accrue to the Consolidated Fund of India and are then routed back to the road sector.
Road Transport and Highways Ministry has sought an assurance from the Finance ministry that Rs.30,000 crore will be available for use in the next 2 years. Based on the assurance for higher funds next year, the projects will be awarded this year.
Source- The Hindu Business Line
gross budgetary support, National Highways Authority of India, National Highways Authority of India (NHAI), road transport and highways ministry, roadways ministry to raise funds
