Fuel Cess, User Fee To Push Highway Work


New Delhi: The government seems to be riding on the enhanced fuel cess and collection of user fee to push the highway expansion programme.

At least 85% of the total allocation for road transport and highway ministry proposed in the Budget (2017-18) will come from these two revenue sources.

Estimates suggest that out of Rs 64,900 crore allocation for the sector for the next financial year, Rs 55,369 crore will come in the form of fuel cess and toll, which is the highest ever.

This is being seen as a sustainable financing model to continue the government’s thrust on building more highways, which has potential to create more employment and push economic activities. The share of fuel cess for highway development has increased dramatically after 2014-15.

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