{"id":37080,"date":"2025-02-10T18:50:37","date_gmt":"2025-02-10T13:20:37","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=37080"},"modified":"2025-08-14T12:32:48","modified_gmt":"2025-08-14T07:02:48","slug":"budgetary-allocation-for-urban-development","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/10-02-2025\/budgetary-allocation-for-urban-development","title":{"rendered":"Budgetary Allocation for Urban Development"},"content":{"rendered":"\n<p><strong>Syllabus: GS 3\/Economy&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In 2025, the government allocated \u20b996,777 crore for urban development, an increase from the previous year, but after adjusting for inflation, this marks a reduction.&nbsp;<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td>Key Highlights of the Budget\u00a0<br>&#8211; Key schemes like the<strong> Pradhan Mantri Awas Yojana (PMAY)<\/strong> saw <strong>significant cuts<\/strong>, reflecting a gap between policy ambitions and actual spending.<br>&#8211; <strong>Transfers to Urban Local Bodies (ULBs)<\/strong> were reduced, and revenue loss due to GST has compounded the issue.<br>&#8211; <strong>Central Sector Schemes<\/strong>, especially for metro projects, <strong>received higher funding<\/strong>, but urban programs like Swachh Bharat Mission, and Smart Cities Mission faced cuts.<br>&#8211; The introduction of a <strong>\u20b910,000 crore Urban Challenge Fund <\/strong>highlights a focus on capital-intensive infrastructure projects, with limited attention on sustainable development, employment generation, and social equity.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Urbanization Growth<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s urbanisation is driven by economic distress, unlike the Global North where it followed industrialisation and colonial wealth transfer.<\/li>\n\n\n\n<li>India\u2019s urbanisation is categorized as &#8220;poverty-driven urbanisation&#8221; with both rural-to-urban and urban-to-urban migration.<\/li>\n\n\n\n<li>The COVID-19 pandemic highlighted the inadequacies of urban planning, with reverse migration showing gaps in infrastructure.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Urban Challenges in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lack of precise data on urban population (2021 Census missing); around 40% of India\u2019s population is urban.<\/li>\n\n\n\n<li><strong>Planning Issues: <\/strong>Spatial plans are outdated, causing overcrowding and slums.\n<ul class=\"wp-block-list\">\n<li>Plans focus on capital growth rather than addressing people&#8217;s needs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Climate Change Impact: <\/strong>Pollution, urban flooding, and heat island effects severely affect cities, especially in Delhi\u2019s NCR region.<\/li>\n\n\n\n<li><strong>Governance Challenges: <\/strong>Despite the 74th Constitutional Amendment, urban planning in Indian cities is controlled by undemocratic bodies.\n<ul class=\"wp-block-list\">\n<li>Cities receive a minimal 0.5% of GDP in intergovernmental transfers.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Initiatives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Swachh Bharat Mission-Urban (SBM-U) 2.0 <\/strong>was launched on October 1st, 2021 for a period of five years with a vision of achieving safe sanitation and scientific processing of municipal solid waste in all cities.<\/li>\n\n\n\n<li><strong>AMRUT 2.0 <\/strong>was launched on 1st October 2021 to make cities \u2018self-reliant\u2019 and \u2018water secure\u2019<strong>.&nbsp;<\/strong><\/li>\n\n\n\n<li>The<strong> Smart Cities Mission<\/strong> was launched to enhance the quality of life in 100 selected cities by providing efficient services, robust infrastructure, and a sustainable environment.<\/li>\n\n\n\n<li>The <strong>Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 aims<\/strong> to construct 1 crore houses for urban poor and middle-class families over the next five years, with an investment of \u20b910 lakh crore and a government subsidy of \u20b92.30 lakh crore.<\/li>\n\n\n\n<li><strong>Street Vending Plans: <\/strong>Development of 100 weekly \u2018haats\u2019 or street food hubs in select cities.\n<ul class=\"wp-block-list\">\n<li>States encouraged to create street-vending plans for more hubs as per local needs<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Suggestions and Way Forward&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The\u00a0 progress has been made towards <a href=\"https:\/\/www.nextias.com\/blog\/sustainable-development-goals-sdgs\/\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/blog\/sustainable-development-goals-sdgs\/\">Sustainable Development Goals (SDGs)<\/a> but still\u00a0 urban areas struggle with poverty, inequality, and environmental degradation.<\/li>\n\n\n\n<li>The challenges faced by Indian cities call for comprehensive national interventions to improve urban planning, governance, and infrastructure.<\/li>\n\n\n\n<li>Urban development requires sustained investments, with cities being recognized as growth hubs.<\/li>\n\n\n\n<li>There is a need to focus on sustainable, low-rise, <strong>radial development<\/strong> over high-rise buildings to prevent urban sprawl and reduce carbon emissions.<\/li>\n<\/ul>\n\n\n\n<p>Source: TH<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2025, the government allocated \u20b996,777 crore for urban development, an increase from the previous year, but after adjusting for inflation, this marks a reduction.\u00a0<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-37080","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/37080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=37080"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/37080\/revisions"}],"predecessor-version":[{"id":51183,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/37080\/revisions\/51183"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=37080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=37080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=37080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}