Parliamentary Standing Committee Report on MoHUA Budget Allocations
The Parliamentary Standing Committee on Housing and Urban Affairs, led by Magunta Sreenivasulu Reddy, presented its report on the Ministry of Housing and Urban Affairs' (MoHUA) Demands for Grants for the period 2026-2027 in the Lok Sabha.
Key Findings
- The Committee flagged the reduction in the ministry's share of allocations to 1.6% of the 2026-2027 Budget Estimates, marking the lowest in five years amidst rising urbanization.
- The total Union government outlay increased from Rs 39.44 lakh crore in 2022-2023 to Rs 53.47 lakh crore in 2026-2027, but MoHUA's share has not risen proportionately.
- The ministry's share dropped from 1.94% in 2022-2023 to 1.6% in 2026-2027.
Budget Allocation and Projections
- Against a projected outlay of Rs 97,644.51 crore for 2026-2027, the approved budget is Rs 85,522.39 crore, a reduction of Rs 12,122.12 crore (12.41%).
- Previous years also showed reductions between projected outlay and approved Budget Estimates:
- 22.82% in 2022-23
- 11.52% in 2023-24
- 17.25% in 2024-25
Utilization of Funds
- The gap between Budget Estimates (BE), Revised Estimates (RE), and Actual Expenditure has widened in recent years.
- For 2025-26, the BE of Rs 96,777 crore was reduced at RE stage to Rs 57,203.78 crore, a reduction of nearly 40%.
- As of February 20, 2026, actual expenditure was Rs 40,967.62 crore, only 71.62% of RE, indicating 28.38% needed to be spent in the last 39 days of the fiscal year.
Recommendations
- The committee recommended a more realistic mechanism for budget estimates to address the persistent gaps.
- It urged presenting a time-bound plan to increase the ministry's share in the Union Budget.
