{"id":326280,"date":"2025-02-10T17:36:18","date_gmt":"2025-02-10T12:06:18","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=326280"},"modified":"2025-02-11T20:09:26","modified_gmt":"2025-02-11T14:39:26","slug":"union-budget-allocation-for-urban-development","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/union-budget-allocation-for-urban-development\/","title":{"rendered":"Union Budget Allocation for Urban Development"},"content":{"rendered":"<p><b>News: <\/b><span style=\"font-weight: 400;\">The total <\/span><b>outlay for urban development<\/b><span style=\"font-weight: 400;\"> in FY 2025 stands at <\/span><b>\u20b996,777 crore<\/b><span style=\"font-weight: 400;\">, an increase from last year\u2019s <\/span><b>\u20b982,576.57 crore<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-326426 aligncenter\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/02\/Union-Budget-Allocation-for-Urban-Development.png?resize=629%2C417&#038;ssl=1\" alt=\"Union Budget Allocation for Urban Development\" width=\"629\" height=\"417\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/02\/Union-Budget-Allocation-for-Urban-Development.png?resize=300%2C199&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/02\/Union-Budget-Allocation-for-Urban-Development.png?resize=1024%2C680&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/02\/Union-Budget-Allocation-for-Urban-Development.png?resize=768%2C510&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/02\/Union-Budget-Allocation-for-Urban-Development.png?w=1280&amp;ssl=1 1280w\" sizes=\"auto, (max-width: 629px) 100vw, 629px\" \/><\/p>\n<h2><b>About the Budgetary allocation<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The budget primarily focuses on <\/span><b>large-scale infrastructure projects<\/b><span style=\"font-weight: 400;\">, particularly metro rail expansions, while <\/span><b>employment generation and sustainable development<\/b><span style=\"font-weight: 400;\"> receive less attention.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Key <\/span><b>urban infrastructure programs<\/b><span style=\"font-weight: 400;\"> have <\/span><b>not received adequate funding<\/b><span style=\"font-weight: 400;\">, indicating a misalignment between <\/span><b>policy goals and actual budgetary support<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><b>Decline in Urban Local Bodies (ULBs) Funding<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><b>Urban development funds<\/b><span style=\"font-weight: 400;\"> are distributed through three key channels:<\/span>\n<ol>\n<li style=\"font-weight: 400;\"><b>Direct transfers to Urban Local Bodies (ULBs)<\/b><\/li>\n<li style=\"font-weight: 400;\"><b>Centrally Sponsored Schemes (CSS)<\/b><\/li>\n<li style=\"font-weight: 400;\"><b>Central Sector Schemes<\/b><\/li>\n<\/ol>\n<\/li>\n<li style=\"font-weight: 400;\"><b>Direct transfers to ULBs<\/b><span style=\"font-weight: 400;\"> have <\/span><b>declined<\/b><span style=\"font-weight: 400;\"> from <\/span><b>\u20b926,653 crore last year to \u20b926,158 crore<\/b><span style=\"font-weight: 400;\"> this year.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The <\/span><b>abolition of octroi<\/b><span style=\"font-weight: 400;\"> and the implementation of <\/span><b>GST<\/b><span style=\"font-weight: 400;\"> led to a <\/span><b>21% drop in ULB revenue<\/b><span style=\"font-weight: 400;\">, yet <\/span><b>compensation through central devolution has not increased<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This funding shortfall will <\/span><b>force cities to generate their own revenue<\/b><span style=\"font-weight: 400;\">, potentially <\/span><b>increasing local taxes<\/b><span style=\"font-weight: 400;\"> and burdening citizens.<\/span><\/li>\n<\/ul>\n<h2><b>Budget Reductions for Key Urban Schemes<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><b>Centrally Sponsored Schemes (CSS)<\/b><span style=\"font-weight: 400;\"> include key urban programs such as:<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><b>PMAY (Urban)<\/b><span style=\"font-weight: 400;\"> \u2013 Budget reduced by <\/span><b>30%<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>AMRUT &amp; Smart Cities Mission<\/b><span style=\"font-weight: 400;\"> \u2013 Funding reduced; Smart Cities Mission has <\/span><b>almost no funds left<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Swachh Bharat Mission (Urban)<\/b><span style=\"font-weight: 400;\"> \u2013 Allocation remains at <\/span><b>\u20b95,000 crore<\/b><span style=\"font-weight: 400;\">, but <\/span><b>only \u20b92,159 crore (56%)<\/b><span style=\"font-weight: 400;\"> was spent as per RE.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>Increased Allocation for Metro and Mass Transit Systems<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><b>Metro rail and rapid transit projects<\/b><span style=\"font-weight: 400;\"> have seen <\/span><b>significant budget increases<\/b><span style=\"font-weight: 400;\">, unlike other urban programs.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>FY 2024-25 Budget<\/b><span style=\"font-weight: 400;\"> for metro projects: <\/span><b>\u20b921,335.98 crore<\/b><\/li>\n<li style=\"font-weight: 400;\"><b>Revised Estimate (RE):<\/b> <b>\u20b924,691.47 crore<\/b><\/li>\n<li style=\"font-weight: 400;\"><b>FY 2025-26 Budget proposal:<\/b> <b>\u20b931,239.28 crore<\/b><span style=\"font-weight: 400;\"> (a <\/span><b>46% increase<\/b><span style=\"font-weight: 400;\"> from the previous year).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This <\/span><b>prioritization of metro rail projects<\/b><span style=\"font-weight: 400;\"> over <\/span><b>holistic urban mobility<\/b><span style=\"font-weight: 400;\"> raises concerns about <\/span><b>inclusive urban development<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><strong>New Urban Challenge Fund<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The <\/span><b>Urban Challenge Fund<\/b><span style=\"font-weight: 400;\"> of <\/span><b>\u20b910,000 crore<\/b><span style=\"font-weight: 400;\"> has been introduced to boost <\/span><b>urban redevelopment programs<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The government aims to <\/span><b>mobilize \u20b91 lakh crore<\/b><span style=\"font-weight: 400;\"> for urban development, with <\/span><b>half of this funding expected from private investments<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Given the <\/span><b>limited private sector participation<\/b><span style=\"font-weight: 400;\"> in initiatives like the <\/span><b>Smart Cities Mission<\/b><span style=\"font-weight: 400;\">, this <\/span><b>target may be overly ambitious<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The total outlay for urban development in FY 2025 stands at \u20b996,777 crore, an increase from last year\u2019s \u20b982,576.57 crore. About the Budgetary allocation The budget primarily focuses on large-scale infrastructure projects, particularly metro rail expansions, while employment generation and sustainable development receive less attention. Key urban infrastructure programs have not received adequate funding,&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/union-budget-allocation-for-urban-development\/\">Continue reading <span class=\"screen-reader-text\">Union Budget Allocation for Urban Development<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":326426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872,10498],"class_list":["post-326280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","tag-the-hindu","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/02\/Union-Budget-Allocation-for-Urban-Development.png?fit=1280%2C850&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/326280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=326280"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/326280\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/326426"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=326280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=326280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=326280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}