It is clear by now that the rural and urban people are not separate topographical categories. The social, economic and political linkages between both centres are vital to enrich the economy. The Government must pay heed

Think of all problems that have come to beset urban India such as lack of jobs, amenities and demonetisation. It will only unravel a pattern of systematic apathy. This is evidenced by the lack of budgetary support, especially to the marginalised in Indian cities. A curious disconnect has set between the NDA’s urban manifesto and its near and medium-term spending for this lot. For a coalition, whose poll planks were focussed on spectacular urban themes, like Smart Cities and Bullet Trains, this disconnect represents an anomaly.

However, this phenomenon is not new. The Standing Committee on Urban Development, in its report on Demands for Grants (2018-19), tabled in March 2018, had suggested that the Ministry of Housing and Urban Affairs should move towards higher budgetary allocation, considering its key role in implementing most flagship schemes of the NDA. The total outlay for the Ministry in 2018-19 stood at only 1.71 per cent of the total outlay of over Rs 24.42 lakh crore — a decrease in share from 1.88 per cent in 2017-18. The Committee noted that the Ministry’s average outlay had nearly stagnated at 1.59 per cent from 2014-15. This despite the Government’s increasing emphasis on urban issues.

Fading magic: One of the key policy pitches of the NDA Government was the Pradhan Mantri Awas Yojana or the Housing for All scheme that promised to build close to 12 million houses by 2022. It aimed to rehabilitate slum dwellers in situ by utilising the land as a resource, promoting and building affordable housing through private-public partnerships and facilitating targeted subsidies for individual house construction.

However, the Medium-term Expenditure Framework Statement, which provides insights on the Union Government’s finances for different ministries/departments and schemes for the next two years, shows that most of these targets are likely to fall short because of below par expenditure estimates for this flagship scheme. The 2018-19 budgeted estimate for urban housing expenditure stood at Rs 6,505 crore, a marginal increase from Rs 6,042 crore in 2017-18 revised estimates. The figure is projected to increase slightly to Rs 6,955 crore in 2019-20, as per the statement.

This poor allocation for urban housing assumes special importance due to the burgeoning of slums in megacities and larger towns, not to forget the uninhabitable living conditions in these informal settlements. Out of the 5.49 million houses to be built in the last three years, only 15 per cent have been completed, while the remaining are either in the planning stage and/or under construction.

It has already been acknowledged by a Parliamentary Oversight Committee on PMAY-U that out of a total project cost of Rs 2.04 lakh crore (Rs 2.04 trillion) and total central share of Rs 57,699 crore (Rs 576.99 billion), as low as Rs 26,162 crore (Rs 261.2 billion) has been sanctioned for release as against the Rs 57,699 crore (Rs 576.99 billion) required for fulfilling PMAY targets. In its report, the Committee noted that “all is not well with the implementation of the scheme and the progress of PMAY has been disappointing”. In its defence, however, the Government pointed out that it has set up a National Urban Housing Fund (NUHF) worth over Rs 60,000 crore in February 2018. The body aims to facilitate the required funds over the next three years (ie till 2022) and provide for any shortfall that may arise. The terms of the fund, where and how it will generate money from and the reporting and monitoring mechanism, are still unclear.

Progress of NULM: At a time when urban services, particularly for vulnerable groups, are languishing, allocation to the Deendayal Antyodaya Yojana — National Urban Livelihoods Mission (DAY-NULM) scheme was reduced by 11.17 per cent at Rs 310 crore in 2018-19 over Rs 349 crore in 2017-18. A year-wise analysis suggests that Budget allocation for NULM showed a downward trend post 2014-2015 with the highest Budget cut in 2015-16.

However, the Government took some ‘innovative’ steps, like planning for the development of “model shelters” for urban homeless in several States, which were likely to provide several facilities like RO water, playground and television to occupants. But with a decline in budgetary allocation since 2015-16, the target of setting up 1,331 shelters before 2019 seems unlikely to be achieved.

Where the two meet: In the last one year, the NDA Government has been hit by twin salvos: On the one hand, farmers protests and strikes have brought the issue of long-term agrarian distress to the doorsteps of the urban masses. On the other, the urban electorate seems to be retreating from its usual support for the BJP, largely due the lack of jobs, demonetisation and the hasty rollout of the Goods and Services Tax (GST).

As the BJP Government is going all out to woo the farming and the agrarian communities after sustaining heavy losses in the Hindi heartland States of Madhya Pradesh, Rajasthan and Chhattisgarh, it is most likely that in the interim Budget to be presented on February 1, it will give priority to the rejuvenation of rural demand and increase their income. But a blinkered approach may not do well to assuage rural distress. The Government must address the systemic malaise and the lack of budgetary allocation for the underprivileged in urban centres.

It is almost clear by now that the rural and urban are not separate topographical categories. The social, economic and political linkages between both centres are vital to enrich the Indian economy. Poor budgetary allocation for flagship urban schemes will exacerbate both urban destitution and rural distress. Course correction on urban agenda will not only have spillover effects on rural migration patterns and farmer incomes but holds the potential to re-think rural problems differently.