Budget 2026: Unlocking Urban Potential for Viksit Bharat 2047

• Budget 2026 marks a significant shift in urban policy, recognizing cities as independent engines of economic growth, distinct from general infrastructure.
• The Finance Minister introduced six interventions, with "Development of City Economic Centers" as a standalone pillar, focusing on "agglomeration" to drive productivity.
• Public capital expenditure surged to ₹12.2 lakh crore, with a new focus on City Economic Regions (CERs) and an allocation of ₹5,000 crore per CER over five years.
• Targeting Tier-II, Tier-III cities, and temple towns aims to spread development, maximize the "density dividend," and mitigate congestion in metros.
• New financing mechanisms include an Infrastructure Risk Guarantee Fund and incentives for Municipal Bonds, empowering Urban Local Bodies (ULBs) to tap capital markets.

Why It Matters: Budget 2026 strategically prioritizes urban development and agglomeration to achieve India's Viksit Bharat 2047 vision.