This is an archive article published on March 18, 2021
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The government wants to build highways for growth. It might not work

The ministry of roads, transport and highways has seen a 30 per cent rise in its budget. But states like UP and Maharashtra have a poor record in converting state funding to welfare and mobility for citizens.

The not-so-surprising fact is that Tamil Nadu does better than Maharashtra and Uttar Pradesh in most indicators connected with roads. (Illustration by C R Sasikumar)The not-so-surprising fact is that Tamil Nadu does better than Maharashtra and Uttar Pradesh in most indicators connected with roads. (Illustration by C R Sasikumar)
6 min readMar 18, 2021 04:28 AM IST First published on: Mar 18, 2021 at 04:28 AM IST

This year’s budget has been hailed as an “infrastructure” budget, with its increased expenditure on capital investments in infrastructure rather than on developmental services such as education or on subsidies and support. The offered argument is the expected multiplier effect as these investments bear fruit.

One example is the Ministry of Roads, Transport and Highways, which has seen a 30 per cent increase in its budget, from Rs 92,000 crore in 2020-21 to Rs 1,18,000 crore this year. Now, roads are certainly very important for both social and economic well-being. From the Census data, we see that more than 12 per cent of high school students travel more than 5 km to go to school, and about 27 per cent use public transport. For college-going students, both these numbers are above 40 per cent. It is also known that road connectivity increases economic activity and expands avenues for employment.

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