Our analysis of the Union Budget FY 2026–27 examines the fiscal trends shaping urban development in India, with a focus on allocations to the Ministry of Housing and Urban Affairs (MoHUA), and their implications for public investment in cities. 

In a year marked by significant reductions in Revised Estimates and shifts across major urban schemes, the note analyses how resources are distributed across flagship programmes such as PMAY-U, AMRUT, SBM-U, MRTS/Metro, the Urban Challenge Fund, and what these trends signal for urban priorities. 

Beyond headline allocations, the analysis reviews scheme utilisation trends alongside Single Nodal Agency (SNA) balances to better understand execution patterns. It also examines the composition of capital investment — through both direct capital outlay and grants for asset creation — to assess the scale and structure of urban infrastructure financing. 

The note further takes stock of progress on key announcements made in the previous budget and incorporates a gender lens to examine how urban spending is reflected in the gender budget framework. Together, the analysis offers a grounded and data-driven view of India’s evolving urban public finance landscape. 

Download