Boost in urban infra: HUA ministry allocated Rs 96,777 cr in Budget

In a bid to boost urban infrastructure, the Centre Saturday hiked the allocation for the Union Housing and Urban Affairs Ministry by around 18 per cent, setting aside Rs 96,777 crore for it in the Union Budget 2025-26.

In the budget presented in Parliament, the government also announced the setting up of an Urban Challenge Fund of Rs 1 lakh crore for "cities as growth hubs", "creative redevelopment of cities", and "water and sanitation". An allocation of Rs 10,000 crore has been proposed for it in FY 2025-26.

The government has allocated Rs 96,777 crore to the HUA ministry for the next fiscal as against Rs 82,576 crore in Budget 2024-25.

Presenting the Union Budget 2025-26, Finance Minister Nirmala Sitharaman said the PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme will be revamped with enhanced loans from banks and UPI-linked credit cards with Rs 30,000 limit.

In the Budget 2025-26, the government has set aside Rs 373 crore for the PM SVANidhi against the Rs 326 crore allocated for the current financial year. 

PM SVANidhi scheme has benefitted more than 68 lakh street vendors, giving them respite from high-interest informal sector loans, according to the government.

A provision of Rs 3,500 crore has also been made for the second phase of Pradhan Mantri Awas Yojana (Urban), another flagship programme of the Modi government.

It has also proposed to allocate Rs 10,000 crore for Urban Rejuvenation Mission being implemented in 500 cities. In the 2024-25 budget, the government had announced Rs 8,000 crore for it.

There has been no allocation for the Smart Cities Mission since the mission deadline will end in June this year. Rs 1,310 crore has been allocated for the PM-eBus Sewa Scheme.

Compared to the 2024-25 Budget, there is no change in the allocation for the Swachh Bharat Mission, with Rs 5,000 crore earmarked in the 2025-26 Budget. Rs 133.10 crore has been allocated for transport planning and capacity building in urban transport for metro and non-metro projects, up from Rs 88.04 crore in the 2024-25 Budget.