Budget 2018: Govt may allocate Rs 90,000 cr for road projects under PMGSY

It was learnt that Centre and states will share the financial burden in the ratio of 60:40 as the government has set itself a target of completing the work under the programme before 2019 Lok Sabha elections

  

The Modi government will present its fourth Budget in 2018. While it is anticipated to be a “populist budget” ahead of a stream of assembly elections next year, the Budget may see an allocation of Rs 90,000 crore for development of roads under Pradhan Mantri Gram Sadak Yojana (PMGSY) spread over three years.

The government is expected to spend approximately Rs 1,00,000 crore on building new roads, including the ones in areas affected by Left-Wing Extremism (LWE) and upgrading roads already built under PMGSY.

The Budget is anticipated to push rural infrastructure in a big way and may allocate an additional Rs 11,000 crore for roads in LWE, through PMGSY.

“Infrastructure creation, even the rural infrastructure, is core to India’s future growth story,” Finance Minister Arun Jaitley, had said at the annual general meeting of Federation of Indian Chambers of Commerce and Industry (Ficci).

Pradhan Mantri Gram Sadak Yojana, which began in 2000, was aimed at providing “all-weather road connectivity” to unconnected villages in India. As per the government data, 47,447 kilometer of roads were constructed till 2016-17.

Rural Development

Out of 1,38,210 roads project sanctioned, 83.7 percent were completed as of December 2017. Out of 1,78,000 habitations where these rural roads were to be built, roads in the remaining 47,000 areas are targeted to be completed by March 2019.

It was learnt that Centre and states will share the financial burden in the ratio of 60:40 as the government has set itself a target of completing the work under the programme before the next Lok Sabha elections in 2019.

During the 2017-18 Budget, Jaitley had allocated Rs 27,000 for the rural roads programme to promote the country’s “sprawling rural economy in the aftermath of demonetisation”. During the Budget 2016-17, the government had earmarked Rs 19,000 for the same.

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