Union Budget 2026: PM Awas Rural Outlay Reduces by Over ₹3,300 Crore While FY27 Allocation Remains Strong

The Union Budget 2026‑27 presents a revised financial picture for the Pradhan Mantri Awas Yojana, with a reduction in the rural component for FY26 and a steady allocation for FY27, alongside modest funding for the urban 2.0 rollout and increased support for the PM SVANidhi scheme. 

Budget Estimate for PM Awas Rural FY27 

The budget document places the FY27 outlay for PM Awas Rural at ₹32,500 crore. This figure is lower than the earlier FY26 projection of ₹35,832 crore, indicating a trimming of roughly ₹3,332 crore.  

Despite the cut, the document notes that mid‑year revisions could raise the envelope to ₹54,917 crore, following the pattern of upward adjustments in previous years. 

PM Awas Rural FY26 Revised Estimate Reduction 

Actual spending in FY24‑25 was ₹32,327 crore. The revised estimate for FY25‑26 rose sharply to ₹54,832 crore, reflecting accelerated releases.  

The FY26 revised estimate has now been reduced by ₹3,332 crore, a change highlighted by state leaders during the budget debate. 

Read More: Union Budget 2026 Highlights: Your 5-Minute Guide to Fiscal, Tax and Sectoral Measures! 

PM Awas Urban 2.0 Allocation 

Utilisation of the urban 2.0 scheme remains limited. FY24‑25 actual outlay was ₹50 crore against a FY25‑26 budget estimate of ₹3,500 crore.  

The revised estimate for FY25‑26 has been cut to ₹300 crore. For FY27, the government has allocated ₹3,000 crore, maintaining the scale of earlier commitments while signalling a cautious implementation pace. 

Overall Housing Ministry Allocation and PM SVANidhi 

The Ministry of Housing and Urban Affairs receives a total allocation of ₹85,522.39 crore in Budget 2026‑27. Within this, the PM SVANidhi scheme for street vendors is allotted ₹900 crore, a 57% increase over the previous year.  

The combined allocation for the first and second phases of PMAY (Urban) totals ₹18,625 crore, split into ₹6,000 crore for Phase I and ₹12,625.05 crore for Phase II. 

Conclusion 

The 2026‑27 budget trims the rural housing outlay for FY26 by ₹3,332 crore, retains a FY27 allocation of ₹32,500 crore, and provides modest funding for the urban 2.0 scheme and an enhanced PM SVANidhi budget. 

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