Union Budget 2019: Modi 2.0 govt may spend more on housing to fulfill poll promise

An uptick in budgetary allocation for the housing ministry is likely to continue as the Modi government aims to intensify its 'Housing for All' scheme. In fact, in the interim budget earlier this year, the Ministry of Housing and Urban Affairs was made a budgetary provision of Rs 48,032 crore, a hike of 15% over FY19. The allocation in the latter year was Rs 41,765 crore.

In FY19, the Modi 2.0 government was able to spend 102.9% of its allotment at Rs 42, 965.10 crore. In FY18, the actual budget expenditure by the Housing Ministry was 98.6%, in FY17 it was 123% which was second highest in the last 10 years. Meanwhile, in FY16 only 81% of the budget was spent and in FY15 61% of the allocation was spent.

Meanwhile, if we look at the budgetary estimates and actual expenditure for the housing sector under NDA I regime, the allotted amount in FY15 (2014-15) was Rs 26,018 crore but the actual amount spent by the government was much lower at Rs 15,982 crore.

FULL COVERAGE:  Union Budget 2019

Similarly, FY16 (2015-16) saw lesser allocation as against FY15 at Rs 24,851 crore while the actual amount spent in the said period stood at Rs 20,180 crore. The allocation increased in FY17 (2016-17) to Rs 29,934 crore with even higher actual expenditure at Rs 36,946 crore.

Interestingly the budgetary allocation and actual expenditure during UPA II was lower than the same during NDA I regime.

In the last year of the Manmohan Singh-led government i.e. FY14 (2013-14) the ministry allocated Rs 11,832 crore and spent Rs 10,447 crore during the same year.

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Furthermore, the Pradhan Mantri Awas Yojana (Urban), an ambitious programme of the Modi government has been given Rs 6,853.26 crore as against Rs 6,505 crore in Union Budget 2018-19.

"A total of 1.53 crore houses have been built under the Pradhan Mantri Awas Yojana," the then Finance Minister Piyush Goyal said while presenting Interim Budget for 2019-20 in the Parliament.

The ministry has been allocated Rs 17,713.93 crore for executing metro projects across the country, which was Rs 14,264.60 crore in the previous Budget.

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The Delhi Metro Rail Corporation (DMRC) has been given grants of Rs 414.70 crore as against Rs 50 crore in the 2018-19.

The government has set aside Rs 19,152 crore for Mass Rapid Transit System (MRTS) as against the previous Budget's allocation of Rs 15,000 crore.

Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme, which aimed at ensuring robust sewage networks, water supply and other infrastructures to improve the quality of life of people in urban areas, was given Rs 7,300 crore, which was Rs 6,000 crore in the current fiscal.

Smart Cities Mission, under which the government has selected 100 cities, has been given Rs 6,600 crore as against Rs 6,169 crore in the last Budget.

Allocation to another flagship programme of the government, Swachh Bharat Mission has been increased to Rs 2,750 crore from Rs 2,500 crore in the current financial year.

The Deen Dayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) scheme has been given Rs 500 crore in the Interim Budget as against Rs 310 crore in the 2018-19 Union Budget.