Union Budget: Job guarantee scheme outlay flat at Rs 86k crore, rural housing gets Rs 54k crore, little over FY25

The NREGS is a demand-driven scheme, and the government can allocate additional amounts required at any time through supplementary demands of grants. However, a lower outlay in the general budget sends signals affecting sentiment on the ground. Therefore, a higher allocation in the budget may send positive signals to states and districts.

For PMAY-G, the Finance Minister has allocated Rs 54,831.99 crore for the financial year 2025-26, which is a little over to the current fiscal year’s BE of Rs 54,500.13 crore. This comes after rural housing saw a massive cut of 36.83% at the RE stage during the current fiscal year (2024-25).

In the Union Budget 2024-25 presented in July last year, the government had allocated Rs 54,500.13 crore for the PMAY-G, but it was revised downward to 32,426.32 crore in the RE—a cut of 36.83%.

However, an allocation of Rs 54,831.99 crore has been made for the PMAY-G for the financial year 2025-26, which is a little over as compared to the last year’s budget estimates (BE) but a substantial jump (69%) over the RE.

Sources say that the cut in the PMAY-G budget at the RE stage was due to a delay in the approval of the next phase of the scheme after the general elections and a delay in the release of funds to several states.

Launched in April 2016, the PMAY-G aimed at constructing 2.95 crore houses in rural areas. However, after the Modi government voted back to power in June last year, it extended the scheme till financial 2028-29 and set a target of construction of another two crore rural houses.