Rs 8,000-Cr New Cities Scheme Scrapped: Funds Unused, 15th FC Period Ends

• The Union Housing and Urban Affairs Ministry informed Lok Sabha that the Rs 8,000-crore scheme to incubate eight new cities cannot be implemented.
• The 15th Finance Commission's award period ends March 31, 2026, and the grant remained unutilised for five years.
• Proposals for new cities lacked robust institutional and governance frameworks, raising concerns about efficient fund utilisation.
• New cities require massive, long-term public investment with strong revenue models, which were not convincingly addressed.
• Budgetary provisions for the scheme were re-appropriated; the Union Budget 2026-27 now proposes seven City Economic Regions (CERs).