The department-related Parliamentary Standing Committee has flagged a significant reduction in budget allocations for housing and urban affairs, marking the lowest in five years.
The committee noted that despite increasing urbanization and rising demand for housing, water supply, sanitation, and urban transport, the ministry's relative share has dropped.
The committee also pointed out a systemic mismatch between projections and actual spending, with nearly 28.38% of the 2025-26 budget left to be spent in the final 39 days of the fiscal year.
The last comprehensive assessment of India's urban infrastructure needs was done in 2011, and there is currently no updated unified national strategy to meet the 'Viksit Bharat 2047 vision', the committee noted.
The committee recommended that the ministry adopt a more realistic and evidence-based forecasting mechanism and formulate a clear and time-bound roadmap for enhancing its share in the total central outlay.
The committee also expressed concern over the 50% reduction in requested funds for 2026-27, which may hinder the goal of making cities 'Garbage Free' by 2026.
