Urban Development Soars: Centre Boosts Housing & Infrastructure Funding

The Union Budget 2025-26 significantly increases funding for urban development, allocating Rs 96,777 crore for the Union Housing and Urban Affairs Ministry. Key initiatives include the Urban Challenge Fund, PM SVANidhi revamp, and Urban Rejuvenation Mission funding. Notable allocations were made for housing programmes and urban transport infrastructure enhancement.

In a strategic move to enhance urban infrastructure, the Central government has increased the budget for the Union Housing and Urban Affairs Ministry by approximately 18 percent, allocating Rs 96,777 crore for the fiscal year 2025-26.

This budget, unveiled in Parliament, introduces an ambitious Urban Challenge Fund worth Rs 1 lakh crore aimed at developing cities as growth hubs while focusing on creative city redevelopment and enhancing water and sanitation facilities. Additionally, Rs 10,000 crore is earmarked for this initiative within the same fiscal year.

Finance Minister Nirmala Sitharaman revealed several enhancements, including an upgrade of the PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) program, with improved loans from banks and UPI-linked credit cards, capped at Rs 30,000.