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The Uttar Pradesh government has doubled its budget for the Pradhan Mantri Awas Yojana - Gramin (PMAY-G) to INR 4,882 crore for 2025-26, up from INR 2,441 crore last year. This increase is set to accelerate the construction of over 30 lakh houses for economically weaker sections in rural areas. Since 2016, PMAY-G has enabled 36 lakh houses in UP, contributing to the national target of 4.95 crore homes by 2029. Additionally, the state has raised the Mukhyamantri Awas Yojana (Gramin) budget to INR 1,200 crore. With enhanced funding for rural employment and infrastructure, UP aims to boost both housing and economic development.
The Uttar Pradesh government has significantly increased its budget allocation for the Pradhan Mantri Awas Yojana - Rural (PMAY-G) in a move that could reshape rural housing development in the state. The budget for the scheme has been doubled to INR 4,882 crore for the 2025-26 financial year, compared to INR 2,441 crore in the previous year. This increase is expected to accelerate the construction of over 30 lakh houses for economically weaker sections in rural areas. Advertisement
Since its national launch in 2016, PMAY-G has facilitated the construction of approximately 36 lakh houses in Uttar Pradesh alone, making it a key driver in addressing rural housing shortages. At the national level, the central government has set an ambitious target of 4.95 crore houses by March 2029, with 3.79 crore already allotted to various states and union territories as of February 2025. Out of these, 3.34 crore houses have been sanctioned, and 2.69 crore have been completed, according to data from the Union Rural Ministry.
In addition to PMAY-G, the state government has also reinforced the Mukhyamantri Awas Yojana (Gramin) by allocating INR 1,200 crore in the 2025-26 budget, up from INR 1,140 crore in the previous fiscal year. This complementary scheme aims to bridge gaps in housing coverage, ensuring more families benefit from government-supported housing initiatives. Experts suggest that such a substantial increase in rural housing investment could contribute to job creation and boost local economies, as construction activity generates employment in both skilled and unskilled labor sectors.
Apart from housing, the Uttar Pradesh government has also expanded funding for rural employment and infrastructure projects. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) received INR 5,372 crore, with a target of generating 34 crore person-days of work. Additionally, rural road connectivity saw an allocation of INR 1,088 crore for maintenance, complementing last year's INR 3,668 crore investment in village roads. The state is also focusing on skill development, with INR 427 crore set aside under the Deen Dayal Upadhyaya Grameen Kaushalya Scheme to enhance employability among rural youth.
With these extensive budgetary measures, the Yogi Adityanath-led government aims to not only provide housing but also create a sustainable development ecosystem in rural Uttar Pradesh. By increasing investments in housing, employment, and infrastructure, the state hopes to strengthen its rural economy while addressing key socio-economic challenges.
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