Urban Development Outlay in Budget 2025-26: Gaps and Cuts
Why in the news
Analysts noted that although cities generate 67% of GDP, urban needs got limited attention in the Budget despite the Viksit Bharat vision.
Key facts
- Outlay: ₹96,777 crore, against ₹82,576.57 crore earlier; lower after inflation.
- Revised estimate: ₹63,669.93 crore, i.e. 22.9% underutilisation.
- PMAY (Urban): ₹30,170.61 crore cut to ₹13,670 crore.
- ULB transfers: ₹26,653 crore to ₹26,158 crore.
Scheme-wise picture
| Scheme | Status |
|---|---|
| PMAY (CSS part) | Down 30% |
| Swachh Bharat Mission (Urban) | ₹5,000 crore unchanged; only ₹2,159 crore likely spent |
| AMRUT, Smart Cities | Flat |
| Urban Challenge Fund | ₹10,000 crore; half of ₹1 lakh crore redevelopment from private sector |
Concerns
- GST caused a 21% drop in ULB revenue; weak central support may force higher local taxes.
- Smart Cities drew little private money, so private funding hopes look optimistic.
- Capital-heavy focus; little on jobs and social equity.
Exam angle
- Urban share of GDP: 67%.
- ULB = Urban Local Body.