Join our Whatsapp channel
The Union Budget 2025-26 proposes a ₹1 lakh crore Urban Challenge Fund to implement the ‘Cities as Growth Hubs’ initiative. This fund will finance up to 25% of the cost of eligible projects, with at least 50% funded through bonds, loans, or public-private partnerships. An allocation of ₹10,000 crore is set aside for the 2025-26 fiscal year.
A National Geospatial Mission is also being launched to modernise land records and urban planning using PM Gati Shakti, aimed at improving infrastructure design and development.
The Budget further focuses on enhancing the welfare of urban poor and vulnerable groups. A new scheme will help improve income, livelihood, and quality of life for urban workers.
Gig workers on online platforms will be issued identity cards and registered on the e-Shram portal. Additionally, they will be eligible for healthcare benefits under the PM Jan Arogya Yojana, potentially impacting around 1 crore workers.
Building on the success of the PM SVANidhi scheme, which has already supported over 68 lakh street vendors, the scheme will now include UPI-linked credit cards with a ₹30,000 limit and enhanced loans.
The Special Window for Affordable and Mid-Income Housing (SWAMIH) has helped deliver 50,000 housing units, with plans to complete another 40,000 in 2025. A new SWAMIH Fund 2, worth ₹15,000 crore, will further accelerate the construction of 1 lakh affordable homes.
