Finance Minister Nirmala Sitharaman announced the Urban Challenge Fund while presenting the Union Budget 2025-26 on Saturday, February 26. This is the eight successive union budget that she has presented.
What is the Urban Challenge Fund?
“The government will create an Urban Challenge Fund of ₹1 lakh crore to carry out proposals such as making cities growth hubs, creative redeveloping, and water and sanitation facilitates announced during the July budget, Sitharaman said.
She added that this fund will provide up to 25% of the costs of bankable projects, with at least 50% of the funding coming from bonds, bank loans, or Public-Private Partnerships (PPPs). An initial allocation of ₹10,000 crore is proposed for 2025-26.
Nirmala Sitharaman has outlined six key focus areas for transformative reforms: taxation, urban development, mining, the financial sector, power, and regulations. “That would mean, in this Budget, all the proposed development measures fall in 10 broad areas, and all focus on the poor, youth, farmers, and women,” she said.
Support for Gig Workers and Street Vendors
The finance minister announced that gig workers would also receive government-issued ID cards, entitling them to healthcare through a social security scheme. She also made a special focus on street vendors and urban workers. Registration of online platform workers on the e-Shram portal.
Advancing Artificial Intelligence and Medical Education
To take AI in education forward, the government will create a Centre of Excellence for Artificial Intelligence with an outlay of ₹500 crore.
Sitharaman also talked about increasing medical education. “The government will expand medical education with 1.1 lakh UG and PG seats over the next decade. In the coming year, 10,000 additional seats will be added,” she said.
The government intends to expand broadband connectivity to all government secondary schools and primary centers in rural areas. Moreover, 50,000 Atal Tinkering Labs will be established in government schools during the next five years.
Driving Inclusive Growth and Middle-Class Empowerment
Sitharaman pointed out that Budget 2025 continues the focus of the government on accelerating the growth of the economy, supporting inclusive development, encouraging private investments, and helping to lift sentiments at the household level. Measures are being brought in to help increase the expenditure capacity of the growing middle-class Indians.
The Budget session starting on January 31 will be concluded on April 4, 2025.
