wl-3438-Union Budget 2025-26 and India’s Quest for Inclusive Cities: An Evaluation

The Union Budget 2025-26 underscores the government’s continued commitment to urban transformation by significantly increasing allocations for the Ministry of Housing and Urban Affairs (MoHUA). While the increased allocation appears promising, this paper critically examines its effectiveness in building inclusive cities. The introduction of the Urban Challenge Fund raises critical concerns regarding inclusivity and financial viability, as the new framework emphasize bankable projects and Public-Private Partnerships (PPP). The design of the PMAY-U is more likely to cater to the needs of middle-income groups and developers.Prioritization of funding for metro expansion would not address the problem of urban mobility in most of the Indian cities.Our analysis argues for rethinking urban policy making based on empowerment of city governments, strengthening municipal capacities, and integrating the urban poor’s needs inurban planning mechanisms.