Nagpur, Feb 9 (PTI) Maharashtra has received major financial support in the Union Budget with a provision of Rs 89,855.80 crore made towards tax devolution to the state, said Union Minister for Road Transport and Highways Nitin Gadkari on Monday.

Highlighting Maharashtra's share in national infrastructure development, Gadkari noted financial assistance from the Centre to the state has increased significantly.

Addressing a press conference in Nagpur on the Union Budget, the senior cabinet minister pointed out that Maharashtra has got a major support in the budget for the next fiscal presented in the Lok Sabha on February 1.

As per the budget estimates for 2026-27, a provision of Rs 89,855.80 crore has been made towards tax devolution to Maharashtra. In the budget estimates for 2025-26, a sum of Rs 50,511 crore was allocated to the state as grants in aid, said the BJP leader.

Between 2014 and 2026, Maharashtra received Rs 5.83 lakh crore through tax devolution and Rs 3.66 lakh crore in the form of grants, informed the Lok Sabha MP from Nagpur.

Gadkari said work on Nagpur Metro Phase 2 was in its final stage.

Under Nagpur Metro Phase 3, proposed corridors include Sitabuldi to Koradi (11.5 km), Butibori MIDC to Khapri, Nagpur Satellite City (3 km) and the Inner Ring Road (15 km). Approval has been granted for preparation of Detailed Project Reports (DPRs) and work on these corridors is expected to commence shortly, said the minister.

He stated that Railway projects worth Rs 1.70 lakh crore are currently underway in Maharashtra. A total of 41 new projects, covering 5,877 km and costing Rs 81,580 crore, are in progress.

Gadkari noted that under the Amrit Bharat Scheme, redevelopment work was underway at 128 Railway stations in Maharashtra, including several in the Vidarbha region such as Nagpur, Ajni, Akola, Amravati, Badnera, Gondia, Hinganghat, Wardha and Washim.

He expressed confidence that sustained investment in connectivity, logistics efficiency and multimodal infrastructure would deliver long-term economic benefits for both Maharashtra and the country as a whole.

Gadkari said the Union Budget will speed up India's development and create employment opportunities.

The minister highlighted that India's logistics costs have significantly declined over the years and the Centre wants to bring them down to single digit.

While developed economies operate with logistics costs of 8 per cent to 9 per cent of their GDP, the same is nearly 8 per cent in China and about 12 per cent in European countries. India's logistics costs earlier stood at 14 per cent-16 per cent of the GDP and have been steadily declining, he noted.

The government aims to bring logistics costs below 10 per cent of the GDP through PPP reforms, increased private investment, green technologies and faster project execution, the minister said.

Citing a study by IIM Bengaluru, IIT Madras and IIT Kanpur, Gadkari noted that infrastructure-led reforms have already delivered a 5 to 6 percentage-point reduction, bringing logistics costs closer to the 9 to10 per cent range.

He said the Union Budget's capital expenditure of Rs 12.20 lakh crore, focused on roads, Railways and shipping, would boost economic growth, competitiveness and help in employment generation.

The proposed Infrastructure Risk Guarantee Fund would strengthen BOT (Build-Operate-Transfer) and PPP models by enhancing investor confidence, Gadkari opined. PTI CLS RSY