Quantum Jump In Penalty For Traffic Violations; Fuel Cess To Be Main Funding Source For Highway Projects

The revenue from challans issued for transport and traffic rule violations increased to nearly Rs 2,014 crore in 2021, which is 30 per cent more than the previous year.

According to the latest Road Transport Ministry data, the quantum jump in the penalty is due to steep increase in the fines after the amended Motor Vehicle Act came into force in September 2019 and more use of IT for recording the traffic violations.

Interestingly, the data shows that Delhi was the only state/ UT where the quantum of fines collected reduced during 2021.

Meanwhile, the road and infrastructure cess levied on petrol and diesel will be the main source of funding for accelerating the building of national highways and providing piped water connection to rural households.

While nearly 75 per cent of the Budget allocated for highway development is estimated to be from this cess during the 2022-23 financial year, the entire funding of the Jal Jeevan Mission and the rural component of the Swachh Bharat Mission will also be funded from the fuel cess.

The budget documents show that nearly Rs 1.48 lakh crore for the highways sector will come from the Central Road and Infrastructure Fund (CRIF) compared to around Rs 89,000 crore for the current financial year ending March 31.

Finance Minister Nirmala Sitharaman has proposed to allocate Rs 1.99 lakh crore for the Road Transport and Highway Ministry. Of this, Rs 1.34 lakh crore will be allocated to the National Highways Authority of India (NHAI), which is primarily responsible for developing NHs (with more than four lanes) and expressways across the country.

The government has proposed to provide Rs 1.01 lakh crore to the NHAI from the CRIF for 2022-23, which is 254 per cent more than what the highway authority got from this fund in the revised estimate of the current financial year.

The entire funding of Rs 7,192 crore for the rural component of the Swachh Bharat Mission under the Jal Shakti Ministry will come from the CRIF.