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NEW DELHI: Some members of the parliamentary standing committee on transport have raised concerns over curtailed allocation of funds from CRIF — the collection of cess and excise duty on petrol and diesel — for the highways sector. The government has proposed to provide around Rs 45,400 crore from CRIF, which is barely 17% of the Rs 2.7 lakh crore budget allocated for the ministry for 2023-24 while for the current financial year, the government has provisioned Rs 1.9 lakh crore, which is around 86% of revised estimate for the sector.
TOI has learnt that the standing committee members sought the reasons behind the reduction in allocation from the Central Road and Infrastructure Fund (CRIF) while taking up the “Demand for Grants” for the road transport and highways ministry on Thursday. Sources said this was one of the major points of discussion at the meeting. The highway ministry, which could not give reasons for this, has assured the panel to respond after getting details from the finance ministry.
Sources said the members pointed out that the fund was established under an Act of Parliament for assured financing of National Highways development and the scope of this has also been widened to other infrastructure sectors. Even as the ministry officials said that there would be no dearth of fund for highway development as there is budgetary support, the members were not convinced, sources said.
Even for other ministries such as railways, Jal Shakti and housing and urban affairs, the government has either reduced the allocation from CRIF or has made no allocation.
The government data show that the fund flow from CRIF increased from Rs 39,410 crore in 2021-22 to Rs 1.14 lakh crore only for the National Highways Authority of India (NHAI) in the revised estimate (RE) of 2022-23. But in the budget presented recently, the government has made provision of only Rs 1,400 crore from the CRIF for 2023-24 even as the overall allocation for NHAI has been increased to a record Rs 1.62 lakh crore. Even for other works — bridges and allocation for UTs — the government has proposed lesser allocation at Rs 43,349 crore for 2023-24 compared to the RE of Rs 75,620 crore.
In the railways, the budget has provisioned for only Rs 12,050 crore allocation from CRIF in the budget estimate (BE) of 2023-24. Data show that in 2021-22, around Rs 59,700 crore from CRIF was pumped into railway projects. Though there was provision for Rs 52,700 crore from CRIF in the BE 2022-23, there is no mention of any allocation in the RE of the current financial year.
In the case of the housing ministry, the CRIF allocation is less at Rs 25,103 crore in the 2023-24 BE for the urban component of PMAY. In 2022-23 RE, the spending from CRIF is pegged at Rs 28,708 crore whereas in 2021-22, this sector got Rs 59,963 from CRIF.
Similarly, while the entire funding of Rs 65,000 crore for Jal Jeevan Mission under Jal Shakti ministry came from CRIF in 2021-22, it was reduced to Rs 60,000 crore during the BE of 2022-23. The budget presented this year has earmarked no fund from CRIF in the RE of the current financial year and there is no such allocation for 2023-24 as well.
One ministry that is proposed to get higher allocation from CRIF is the rural development ministry, for its flagship PM Awas Yojna (PMAY) in villages. The Centre has proposed spending of Rs 54,487 crore in 2023-24 compared to the revised estimate (RE) of Rs 48,422 crore in the current financial year.
The government in 2018 amended the Central Road Fund as CRIF and allowed using the proceeds of the fuel cess to finance other infrastructure projects, including waterways, railway infrastructure and even social infrastructure.
TOI has learnt that the standing committee members sought the reasons behind the reduction in allocation from the Central Road and Infrastructure Fund (CRIF) while taking up the “Demand for Grants” for the road transport and highways ministry on Thursday. Sources said this was one of the major points of discussion at the meeting. The highway ministry, which could not give reasons for this, has assured the panel to respond after getting details from the finance ministry.
Sources said the members pointed out that the fund was established under an Act of Parliament for assured financing of National Highways development and the scope of this has also been widened to other infrastructure sectors. Even as the ministry officials said that there would be no dearth of fund for highway development as there is budgetary support, the members were not convinced, sources said.
Even for other ministries such as railways, Jal Shakti and housing and urban affairs, the government has either reduced the allocation from CRIF or has made no allocation.
The government data show that the fund flow from CRIF increased from Rs 39,410 crore in 2021-22 to Rs 1.14 lakh crore only for the National Highways Authority of India (NHAI) in the revised estimate (RE) of 2022-23. But in the budget presented recently, the government has made provision of only Rs 1,400 crore from the CRIF for 2023-24 even as the overall allocation for NHAI has been increased to a record Rs 1.62 lakh crore. Even for other works — bridges and allocation for UTs — the government has proposed lesser allocation at Rs 43,349 crore for 2023-24 compared to the RE of Rs 75,620 crore.
In the railways, the budget has provisioned for only Rs 12,050 crore allocation from CRIF in the budget estimate (BE) of 2023-24. Data show that in 2021-22, around Rs 59,700 crore from CRIF was pumped into railway projects. Though there was provision for Rs 52,700 crore from CRIF in the BE 2022-23, there is no mention of any allocation in the RE of the current financial year.
In the case of the housing ministry, the CRIF allocation is less at Rs 25,103 crore in the 2023-24 BE for the urban component of PMAY. In 2022-23 RE, the spending from CRIF is pegged at Rs 28,708 crore whereas in 2021-22, this sector got Rs 59,963 from CRIF.
Similarly, while the entire funding of Rs 65,000 crore for Jal Jeevan Mission under Jal Shakti ministry came from CRIF in 2021-22, it was reduced to Rs 60,000 crore during the BE of 2022-23. The budget presented this year has earmarked no fund from CRIF in the RE of the current financial year and there is no such allocation for 2023-24 as well.
One ministry that is proposed to get higher allocation from CRIF is the rural development ministry, for its flagship PM Awas Yojna (PMAY) in villages. The Centre has proposed spending of Rs 54,487 crore in 2023-24 compared to the revised estimate (RE) of Rs 48,422 crore in the current financial year.
The government in 2018 amended the Central Road Fund as CRIF and allowed using the proceeds of the fuel cess to finance other infrastructure projects, including waterways, railway infrastructure and even social infrastructure.
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