Urban Development in India: Budget Analysis and Challenges
Budget Overview
- Total Outlay: ₹96,777 crore for urban development, up from the previous year’s ₹82,576.57 crore.
- Underutilization: Revised Estimate (RE) indicates only ₹63,669.93 crore will be spent, a 22.9% underuse.
- Pradhan Mantri Awas Yojana (Urban) [PMAY(U)]: Allocation reduced from ₹30,170.61 crore to ₹13,670 crore in RE, highlighting a gap between policy and implementation.
Key Concerns
- Infrastructure Gaps: Increased outlay fails to address urgent urban infrastructure needs.
- Capital-Intensive Focus: Emphasis remains on projects like metro rail expansion, neglecting employment and sustainable development.
- Urban Local Bodies (ULBs): Shortfall due to abolition of octroi and reduced central devolution, with ULBs share declining from ₹26,653 crore to ₹26,158 crore.
Transfers to Urban India
- Direct Transfers: Decreased for ULBs, leading to potential increased local taxation.
- Centrally Sponsored Schemes (CSS): Involves cost-sharing, but major urban programs like PMAY and the Smart Cities Mission face reduced allocations.
- Central Sector Schemes: Focus on capital-intensive projects, notably metro rail, with increased allocations.
Significant Allocations
- Mass Rapid Transit Systems: Budget increased from ₹21,335.98 crore to ₹24,691.47 crore, with next year’s proposal at ₹31,239.28 crore.
- Urban Challenge Fund: Introduced at ₹10,000 crore, with a target of ₹1 lakh crore for urban redevelopment, relying heavily on private investments.
Conclusion
The budget prioritizes infrastructure investments but neglects social and economic equity, potentially increasing disparities. The focus remains on capital-intensive projects, with less attention to employment generation, green jobs, and sustainable policies.
