The latest data released during the Union Budget 2026-27 presentation has brought light to a significant gap in fund utilization for major central schemes. Finance Minister Nirmala Sitharaman presented the figures on February 1, 2026, which confirmed that a large portion of the money allocated for the financial year 2025-26 remained in government accounts and did not reach the ground level. While the initial budget promises were high, the actual spending has lagged behind in sectors like rural development, housing, and technology.
List of Schemes With Unspent Funds
The Revised Estimates (RE) for the current year show that spending targets were missed by a wide margin. For instance, the Jal Jeevan Mission, aimed at providing tap water, could not utilize nearly 75% of its budget. Here is the official breakdown of the allocated money versus the actual money spent:
| Scheme Name | Budget Allocated | Actual Spent (Est.) |
|---|---|---|
| Jal Jeevan Mission | ₹67,000 Cr | ₹17,000 Cr |
| PM Internship Scheme | ₹10,831 Cr | ₹526 Cr |
| PMAY – Urban 2.0 | ₹3,500 Cr | ₹300 Cr |
| PMAY – Urban | ₹19,794 Cr | ₹7,500 Cr |
| PMAY – Rural | ₹57,832 Cr | ₹32,500 Cr |
| BharatNet | ₹22,000 Cr | ₹5,500 Cr |
| PM Gram Sadak Yojana | ₹19,000 Cr | ₹11,000 Cr |
| PM SHRI Schools | ₹7,500 Cr | ₹4,500 Cr |
Why Was The Money Not Spent?
The government data indicates several reasons for this underspending. For the PM Internship Scheme, specifically, the utilization was extremely low at just about 4%. Reports suggest that low acceptance rates among candidates and a lower stipend amount of ₹5,000 were key factors. Additionally, the Urban Challenge Fund saw a massive gap, spending only ₹71 crore out of ₹10,000 crore, as many projects faced implementation bottlenecks at the state level.
New Announcements For 2026-27
Despite the funds remaining unspent this year, the government has moved forward with new plans for the upcoming financial year. A major update is the replacement of the old MGNREGA scheme with a new mission named VB-G RAM G (Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission). This new rural employment guarantee has been given a budget of ₹95,692 Crore. The government also announced the India AI Mission 2.0 to boost computing infrastructure in the coming months.
