Union Government Boosts PM Awas Yojana Budget While Previous Targets Only Partially Met

The budget for PMAY, the housing programme, has increased by 66% compared to last year’s budget estimates

Update: 2023-02-10 12:15 GMT

Nearly three-fourths of the houses sanctioned under PMAY-Rural, and around half the houses targeted under PMAY-Urban, have been completed as per latest official data. Image Credit: iStock

Since 2016-17, the budget for the Pradhan Mantri Awas Yojana (PMAY), the flagship housing scheme of the government, has increased 280% from Rs 20,936 crore in the revised estimates of 2016-17 to Rs 79,590 crore in the latest 2023-24 budget. Yet, the targets for the number of houses to be built under this scheme are yet to be met.

The original 'housing for all' scheme was announced in the budget speech of 2015-16, by then finance minister Arun Jaitley, with a target of building 20 million houses in urban areas and 40 million houses in rural areas by 2022. The scheme was later restructured in 2016, with a target of 29.5 million houses in rural areas. Of this target, 21.3 million houses were completed, as of February 10, 2023.

Under Prime Minister's Awas Yojana–Urban, 12.27 million houses were sanctioned, the deadline for which was extended until December 2024 from the original deadline of December 2022.

PMAY is a housing scheme of the Union government, directed towards providing affordable housing to the urban as well as rural poor. PMAY-Gramin is a rural housing scheme under the Ministry of Rural Development, and PMAY-Urban is under the Ministry of Housing and Urban Affairs.

Here are the details of the scheme's current status:

  • Nearly three-fourths (72%) of the houses sanctioned under PMAY-Gramin (PMAY-Rural), and around half the houses (55%) targeted under PMAY-Urban, have been completed, as per latest official data.

  • 12.27 million houses have been sanctioned under PMAY-Urban, of which 6.8 million had been completed as on February 6, 2023 as per the PMAY-Urban dashboard.

  • The initial target year for the construction of 29.4 million houses under PMAY-Gramin was 2022, which has now been extended to March 2024. Of this target, 21.3 million houses were completed, as of February 10, 2023.

Prime Minister's Awas Yojana Budget-Rural


Budget Estimate

Revised Estimate

Actual

2015-16



10116.2

2016-17

15000

16000

16070.84

2017-18

23000

23000

22572.29

2018-19

21000

19900

19307.94

2019-20

19000

18475

18116.02

2020-21

19500

19500

19269.14

2021-22

19500

20389.84

30056.87

2022-23

20000

48422


2023-24

54487



Source: Budget documents for 2016-17, 2017-18, 2018-19, 2019-20, 2020-21, 2021-22, 2022-23, 2023-24

Prime Minister's Awas Yojana Budget-Urban


Budget Estimate

Revised Estimate

Actual

2015-16



1487.25

2016-17

5075

4936.1

4880.85

2017-18

6042.81

6042.51

8591.31

2018-19

6505

6505.01

6134.62

2019-20

6853.26

6853.26

6847.63

2020-21

8000

21000

20990.7

2021-22

8000

27000

59963.04

2022-23

28000

28708.01


2023-24

25103.03



Source: Budget documents for 2016-17, 2017-18, 2018-19, 2019-20, 2020-21, 2021-22, 2022-23, 2023-24

The Awas Yojana budget estimate for 2023-24 constitutes an allocation of Rs 25,103 crore to PMAY-Urban and Rs 54,487 crore to PMAY-Gramin. Despite the increase in overall allocations for the Awas Yojana, the PMAY-Urban budget estimate for 2023-24 declined 10% from 2022-23. The PMAY-Gramin outlay increased by 172%.

Challenges for PMAY targets

There are several challenges for the scheme.

These include administrative delays–such as those between sanctioning a home and various stages of verification, Neeha Susan Jacob, Senior Research Associate at the Accountability Initiative, Centre for Policy Research, told FactChecker.

For PMAY-Gramin specifically, another issue is the identification of eligible citizens by Gram Panchayats, said Jacob, which was also pointed out by the Standing Committee on Rural Development and Panchayati Raj, 2021-22. Officials in Gram Panchayats who identify eligible citizens for the programme could be biased or be politically motivated in whom they choose, the report says. This possibility of biased eligibility for the programme is compounded by the lack of access to grievance redressal mechanisms for the economically and socially deprived sections of the population.

"There can be geographical challenges too. For instance, hilly states in the North Eastern Region, like Meghalaya, Mizoram and Nagaland, face adverse climatic conditions and geographies…it takes them far longer to build a house than the norms stipulate," Jacob added.

FactChecker reached out to Gaya Prasad, the deputy director general, and Shailesh Kumar, director of the housing wing of department of rural development and the Ministry of Housing and Urban Affairs for comment on the achievement of the Awas Yojana targets, and whether the additional budget will help attain the rural targets. We will update the story when we receive a response.

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