PMAY-U Fund Use Tapers, Execution Lags Despite High Demand

• Demand for the Centre's urban housing scheme (PMAY-U) is slowing, with fund utilization by states tapering off.
• Spending under PMAY-U peaked at Rs 60,000 crore in FY22 but significantly declined in subsequent years despite increased budget allocations.
• Execution, not funding, is the primary constraint, with states drawing down funds at a slower pace.
• While overall completion rates improved to 76% by December 2025, states like Bihar, Haryana, and Andhra Pradesh lag.
• High occupancy rates (over 95%) indicate strong demand for completed houses, but construction has slowed in key states like UP and Maharashtra.

Why It Matters: Poor execution of a key housing scheme limits urban housing access for many.