Budget Allocation for Urban Development Cut
The latest Union Budget allocates the lowest share for housing and urban affairs in five years. Critics warn this could worsen the “urban crisis,” as cities like Delhi and Mumbai grapple with infrastructure deficits. A plan to incubate eight new cities has stalled, and the budget proposes seven "city economic regions" instead.
The Ministry of Housing and Urban Affairs (MoHUA) saw a significant budget decrease, allocated ₹76,549.46 crore, which is 13.4% less than the previous fiscal year. This reduction marks the lowest share for urban development in the last five years, raising concerns among experts. A parliamentary panel has expressed worries that decreased funding could impede essential projects like the Smart Cities Mission and the Pradhan Mantri Awas Yojana (PMAY), potentially widening the urban infrastructure gap. The PMAY, aimed at providing affordable housing, has faced challenges, with only a portion of sanctioned houses completed. The plan to develop eight new cities with an ₹8,000 crore investment has stalled due to land acquisition and environmental clearance issues. Instead, the government is now focusing on developing "city economic regions," although specific details and budget allocations for these regions remain unclear. The reduced budget allocation comes at a time when cities like Delhi and Mumbai are already struggling with infrastructural deficits, including inadequate water supply, sanitation, and affordable housing. Critics argue that these cuts could exacerbate the "urban crisis," hindering sustainable urban development and economic growth.
