A Comprehensive Look At The States’ Housing Budgets

How much do states spend on housing, infrastructure and roadways? Given that physical infrastructure is important from a housing point of view, experts believe that roadways and new infrastructure are the first cues that establish developers’ and homebuyers’ movement. Here is a look at state budgets for FY 2019-20 and the volume of funds allotted to develop housing and infrastructure.

Andhra Pradesh

Total budget: Rs 2,27,975 crores

Water supply, sanitation, housing and urban development: This year, the total budget allotted stood at Rs 12,296 crores, which is 18 per cent higher than the allocation in the previous financial year. Rs 2,105 crores has been allocated for the Pradhan Mantri Awas Yojana (PMAY) scheme while Rs 1,356 crores will go to fund the weaker sections. The YSR Urban Housing Scheme has been allotted Rs 1,000 crores. New infrastructure has been allotted Rs 500 crores this year while Rs 648 crores goes towards YSR interest-free loans to urban self-help groups.

Roads and bridges: The state has allocated 1.6 per cent of its total expenses towards roads and bridges. However, the national average spend on roads, stood at 4.3 per cent.

Transport: The state government has allocated Rs 4,267 crores to transport, which is a 116 per cent higher allotment than last year. Of this, Rs 500 crores has been allocated for reimbursement of concessions that the Andhra Pradesh State Road Transport Corporation (APSRTC) provides for public transport users.

Assam                                  

Total budget: Rs 99,419 crores

Water supply, sanitation, housing and urban development: Assam has gone in for some rationalising of costs in these departments, with the current outlay of Rs 6,204 crores being almost 29 per cent lower than the previous financial year’s allocation. Of this Rs 1,100 crores has been allocated for the PMAY-Gramin and Rs 780 crores for construction of toilets under the Swachh Bharat Mission (SBM).

Roads and bridges: There is a 20 per cent decline in the allocation of funds here, as well. This year’s estimated expenditure has come down to Rs 6,777 crores. Of this, Rs 1,200 crores goes towards the State Priority Scheme and another Rs 500 crores towards Assam Mala for the construction of roads.

Bihar

 Total budget: Rs 2,00,501 crores

 Water supply, sanitation, housing and urban development: With an allocation of Rs 20,744 crores towards these departments, there has been a five per cent increase in the budget over the last year. The Smart Cities Mission in Bihar has been allotted Rs 620 crores, while the SBM (Urban) gets Rs 390 crores.

Transport: Rs 8,360 crores has been allocated for this department, of which road construction will take up Rs 5,536 crores of capital.

Chhattisgarh

Total budget: Rs 93,816 crores

 Water supply, sanitation, housing and urban development: Rs 5,959 crores has been allocated, of which Rs 1,723 crores is for the PMAY-Gramin, while Rs 119 crores is towards rural water supply. Sanitation and cleaning take up another Rs 1,000 crores.

Roads and bridges: Chhattisgarh’s expenditure on infrastructure creation is significantly higher than most states, with 6.8 per cent of the total outlay allocated towards the construction of roads and bridges.

Transport: There has been a four per cent rise in the budget allocated for the development of transport infrastructure, with the estimated expenditure being Rs 6,158 crores. Of this, Rs 193 crores is towards the construction of bridges while Rs 674 crores is for district road construction.

Delhi

 Total budget: Rs 60,000 crores

 Water supply, sanitation, housing and urban development: With a 10 per cent increase in budget allocation in these sectors, the total budget stands at Rs 5,280 crores. Of this, Rs 995 crores is reserved for the development of unauthorised colonies. Rs 872 crores has been granted to the Delhi Jal Board and to provide potable water and sewage in unauthorised colonies.

Rs 468 crores goes towards reimbursements offered by the Delhi Jal Board and Rs 482 crores is allocated to municipalities for strengthening sanitation services.

 Roads and infrastructure: A 25-km four-lane road along the Najafgarh drain has been allocated Rs 500 crores of the budget, while Rs 1,600 crores is towards providing water supply and sewerage in unauthorised colonies. Delhi also has a higher allocation of funds towards roads and bridges, which is higher than the national average at 4.6 per cent.

Transport: There is a 38 per cent increase in budget allocated for transport and allied development. The estimate for this year stands at Rs 5,882 crores. Of this, Rs 1,876 crores works out to grants for the Delhi Transport Corporation (DTC) as its working deficit, while Rs 800 crores goes towards the Mukhyamantri Sadak Punrotthan Yojna. Rs 700 crores has been allocated to meet the losses by cluster buses and Rs 108 crores will be used to reimburse the DTC buses subsidy.

Gujarat 

Total budget: Rs 2,02,862 crores

Water supply, sanitation, housing and urban development: Out of the allotted Rs 20,103 crores, Rs 1,955 crores has been reserved for grants-in-aid to corporations under the Swarnim Jayanti Mukhya Mantri Shaheri Vikas Yojana.

Roads and bridges: Gujarat has maintained the national average of 4.3 per cent, when it comes to spending on roads. 

Transport: Of Rs 9,606 crores being allocated towards transport in Gujarat, Rs 1,559 crores is towards the Mukhya Mantri Gram Sadak Yojana.

Haryana

Total budget: Rs 1,32,166 crores

 Water supply, sanitation, housing and urban development: Of the total budget, Rs 9,691 crores has been allocated for these departments. About Rs 400 crores will be reserved for the Smart Cities and AMRUT missions.

Roads and bridges: Lower than the national average, the state has allocated 2.5 per cent of the total expenditure on roadways, with Rs 833 crores.

Transport: Haryana has allocated Rs 5,442 crores towards transport, which is nine per cent higher than the previous year’s allocation. Haryana’s roadways will be developed at a cost of Rs 2,261 crores.

Karnataka

Total budget: Rs 2,34,153 crores

 Water supply, sanitation, housing and urban development: This year, Rs 14,013 crores has been allocated to these departments, of which Rs 166 crores has been allocated towards the Pradhan Mantri Grameen Sadak Yojana and  Rs 1,250 crores is for the Namma Grama Namma Raste Scheme.

Roads and bridges: At 4.8 per cent, Karnataka’s budget in this sector is higher than the national average. Rs 2,300 crores has been set towards Nava Bengaluru Kriya Yojana while Rs 10,000 crores is towards the development of 7,940 kms of roads.

Transport: The sector has been allotted Rs 12,479 crores, of which Rs 206 crores will be for the North-West Karnataka Regional Transport Corporation.

Maharashtra

Total budget: Rs 4,04,794 crores

 Water supply, sanitation, housing and urban development: With a 26 per cent increase in allocation in these departments, Maharashtra’s housing department has been allocated Rs 30,077 crores. While Rs 620 crores has been allocated for the SBM, Rs 706 crores has been allocated to PMAY. Rs 442 crores goes towards the Smart City mission and Rs 600 crores is set for the AMRUT mission.

Infrastructure: The Nagpur-Mumbai Express Highway is expected to be built at Rs 55,335 crores while Rs 11,332 crores is reserved for the Bandra-Versova Sea Link. By 2021, the Maharashtra government is also looking to construct over 3.36 lakh kilometres of roads.

Tamil Nadu

Total budget: Rs 2,64,556 crores

Water supply, sanitation, housing and urban development: Of a budget of Rs 15,196 crores, which is an increase of 18 per cent over the last year’s allocation, Rs 2,662 crores has been given to the PMAY-Urban, Rs 1,650 crores is reserved for Smart Cities and Rs 1,450 crores is towards the AMRUT.

Transport: Budget for transport development in Tamil Nadu has gone up by 21 per cent and stands at Rs 12,223 crores. Rs 4,570 crores is reserved for the Comprehensive Road Infrastructure Development programme while Rs 1,050 crores is set for the facelift of panchayat roads. The Chennai Metro Rail Ltd has been allotted Rs 750 crores.

Telangana

 Total budget: Rs 1,46,492 crores

 Water supply, sanitation, housing and urban development: Telangana perhaps saw the sharpest cut in budget in this department. From Rs 11,512 crores in FY 2018-19 to Rs 3,528 crores in FY 2019-20, the cut stands at 69 per cent.

Of the allocation, Rs 522 crores has been given to municipalities under the State Finance Commission, while Rs 622 crores goes towards repaying loans to financial institutions for rural housing.

Uttar Pradesh

Total budget: Rs 4,79,701 crores

Water supply, sanitation, housing and urban development: With a seven per cent increase over the last year, Rs 33,374 crores has been allocated for this sector. The Kanpur and Agra metro rails have received Rs 175 crores each. Rs 5,156 crores is towards PMAY, Rs 2,200 crores is towards AMRUT, while the Smart Cities mission gets another Rs 2,000 crores.

Transport: The Jewar airport has been allocated a big chunk of Rs 800 crores, of the Rs 27,661-crore budget that this department has received.