Urban Development Allocation Cut by 11.6% in Budget 2026; Focus Shifts to Metro Rail
The Union Budget 2026 has reduced the allocation for urban development by 11.6%, from ₹96,777 crore to ₹85,522 crore. This reduction has raised concerns regarding the sustainability of essential services in cities facing mass migration and climate change. Within the shrinking budget, a significant portion (33.6%) is dedicated to metro rail projects, which critics argue primarily benefit large cities and middle-class commuters. Funding for flagship schemes like the Pradhan Mantri Awas Yojana (Urban) and the Swachh Bharat Mission (Urban) has seen notable declines, with SBM-U's budget halved to ₹2,500 crore.
Key Points
- Urban development allocation decreased by 11.6% to ₹85,522 crore for FY27.
- Metro rail projects account for over one-third (33.6%) of the total urban budget.
- Swachh Bharat Mission (Urban) allocation was reduced by 50% to ₹2,500 crore.
- PMAY-U funding fell from ₹19,794 crore to ₹18,625 crore, a 5.9% cut.
Exam Facts
- Total urban allocation: ₹85,522 crore.
- SBM-U allocation: ₹2,500 crore.
- Metro rail share: 33.6% of urban budget.
- PMAY-U allocation: ₹18,625 crore.
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