4 months to go, only 27% of budget used for urban development schemes, Pg8

Key Highlights:

• The Union Ministry of Housing and Urban Affairs (MoHUA) spent only 27.90% (Rs 25,878 crore) of its Rs 92,743 crore budget for urban development schemes as of December 2, 2025.
• Spending on key schemes like Swachh Bharat Mission-Urban (16.58%) and Pradhan Mantri Awas Yojana (PMAY)-Urban (14.75%) remains low.
• Mass Rapid Transit System and Metro projects saw the highest expenditure at Rs 14,811 crore (42.55% of allocated budget).
• The Urban Challenge Fund, allocated Rs 10,000 crore, may be reduced to Rs 1,000 crore in the Revised Estimates.

Detailed Insights:

• The low expenditure is attributed to factors like fund utilization by states, the cycles of new and closing schemes, and the recent launch of PMAY-Urban 2.0.
• The Ministry is regularly monitoring implementation progress with state governments to improve fund utilization.
• The Revised Estimates for 2025-2026 show a 46% reduction from the Budget Estimates, primarily due to the reduced allocation for the Urban Challenge Fund.
• The 15th Finance Commission's cycle is ending, and the 16th Finance Commission's recommendations will be implemented next fiscal year, potentially impacting future allocations based on current spending.
• The Urban Challenge Fund was announced to finance up to 25% of bankable projects, requiring at least 50% funding from bonds, bank loans, and PPPs.
• Expenditure in the last quarter of the financial year is capped at 33%, with a maximum of 15% allowed in the last month, posing a challenge for the Ministry to meet its targets.

Key Concepts Involved:

• Swachh Bharat Mission-Urban: Aims to make urban areas clean and free of open defecation.
• Pradhan Mantri Awas Yojana (PMAY)-Urban: Provides affordable housing to the urban poor.
• Urban Challenge Fund: Supports bankable urban projects with funding from various sources.