NEW DELHI — On Thursday, March 12, 2026, the Parliamentary Standing Committee on Housing and Urban Affairs, chaired by Magunta Sreenivasulu Reddy (TDP), presented a scathing report in the Lok Sabha. The panel flagged a significant decline in the Ministry of Housing and Urban Affairs (MoHUA) budget share, warning that reduced fiscal support could derail India’s goal of becoming a “Viksit Bharat” by 2047.
Despite the surge in urban migration and the rising demand for housing and sanitation, the ministry’s share in the total Central Budget has hit a five-year low.
1. The Shrinking Budget: 1.6% Allocation
The committee highlighted a troubling trend where the ministry’s relative importance in the national budget is diminishing.
- The Record Low: For the Budget Estimate (BE) 2026-27, the allocation for MoHUA stands at just 1.6% of the total central outlay. This is a sharp decline from 1.94% in 2022-23.
- Drastic Revisions: The panel noted a “massive downward revision” in the previous fiscal year (2025-26), where the budget was slashed by 40% at the Revised Estimate (RE) stage.
- Underspending: In 2024-25, the ministry surrendered a staggering ₹32,291.34 crore, indicating a systemic failure to utilize allocated funds.
2. Waste Management & The “Garbage-Free” Goal
The report raised serious alarms regarding the Swachh Bharat Mission (Urban) and the looming 2026 deadline for “Garbage-Free Cities.”
- Legacy Waste: Approximately 37.5% of identified legacy waste (942.77 lakh MT) is still awaiting remediation.
- Funding Shortfall: The committee observed that requested funds for waste management in 2026-27 were cut by 50%, which could severely hinder biomining and land reclamation efforts.
- Spending Rush: Nearly 28.38% of the 2025-26 budget was left unspent until the final 39 days of the fiscal year, leading to inefficient, last-minute spending.
3. Outdated Infrastructure Assessments
The committee pointed out that India is planning its future based on data from the past.
- The 2011 Gap: The last comprehensive assessment of India’s urban infrastructure needs was conducted in 2011. There has been no unified national strategy update in 15 years.
- Under Strain: Existing systems for affordable housing, drinking water, and public transport are currently “under strain” and failing to keep pace with modern metropolitan demands.
Key Budgetary Trends (MoHUA)
| Fiscal Year | Share of Total Budget Outlay | Change Stage |
| 2022-23 | 1.94% | Baseline High |
| 2024-25 | Reported Surplus | ₹32,291 Cr Surrendered |
| 2025-26 | 1.91% (Initial) | 40% Reduction at RE stage |
| 2026-27 | 1.60% | Lowest in 5 years |
Primary Recommendations of the Committee
- Realistic Forecasting: Adopt evidence-based mechanisms that align with the actual implementation capacity of states.
- Time-Bound Roadmap: Formulate a plan to progressively increase the ministry’s share in the central outlay.
- Unified National Strategy: Conduct a fresh, comprehensive assessment of urban needs to align with the Viksit Bharat 2047 vision.
- Mid-Year Reviews: Institute robust monitoring to prevent the massive surrender of funds and ensure timely utilization.