Urban Transformation Strategies in Union Budget 2024-25
Desk Report, July 24, 2024: Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, presented the Union Budget 2024-25, highlighting the government’s dedication to driving robust development and widespread prosperity. A key focus of this budget is urban development, with several initiatives aimed at enhancing housing, rental facilities, city planning, water supply, sanitation, and support for street vendors.
The Union Budget 2024-25 allocates funds for the construction of three crore additional houses under the Pradhan Mantri Awas Yojana (PMAY), covering both rural and urban areas. This includes PM Awas Yojana Urban 2.0, targeting the housing needs of one crore urban poor and middle-class families with an investment of ₹10 lakh crore. Central assistance of ₹2.2 lakh crore will be provided over the next five years to support this initiative, which also offers interest subsidies to facilitate affordable loans.
Since its inception in 2015 for urban areas and 2016 for rural areas, PMAY has focused on providing pucca houses with essential amenities such as household toilets, LPG connections, electricity, and functional household tap connections. The scheme mandates that the female head of the family be the owner or co-owner of the house, promoting women’s empowerment among economically weaker sections (EWS) and low-income groups (LIG).
The budget highlights the facilitation of rental housing with dormitory-type accommodation for industrial workers through Public-Private Partnership (PPP) mode, supported by Viability Gap Funding (VGF) and commitment from anchor industries. Policies and regulations will ensure efficient and transparent rental housing markets.
The government plans to collaborate with states to develop cities as growth hubs through economic and transit planning, and orderly development of peri-urban areas using town planning schemes. A framework will be formulated for creative brownfield redevelopment of existing cities, focusing on enabling policies, market-based mechanisms, and regulation. Transit Oriented Development plans will be implemented for 14 large cities with populations above 30 lakh.
The Union Government, in partnership with state governments and multilateral development banks, will promote water supply, sewage treatment, and solid waste management projects in 100 large cities. These projects will also utilize treated water for irrigation and filling up nearby tanks.
A new scheme will support the development of 100 weekly ‘haats’ or street food hubs each year for the next five years in select cities, building on the success of the PM SVANidhi Scheme in transforming the lives of street vendors.
The Union Government will encourage states to moderate high stamp duty rates and consider further lowering duties for properties purchased by women. This reform is seen as an essential component of urban development schemes.
The Union Budget 2024-25’s focus on urban development underscores the government’s commitment to providing housing, rental facilities, and essential services to urban and rural populations. Through substantial investments and strategic initiatives, the budget aims to foster economic growth, improve living standards, and promote sustainable urbanization across the country.
Also read: Major Revisions in Income Tax Regime Announced in Union Budget 2024
