Union Budget 2026: Urban development funding slashed by nearly 12%

Business Feb 01, 2026

This year's Union Budget slashes urban development funding by nearly 12%, dropping from ₹96,777 crore to ₹85,522 crore.
Major schemes like Swachh Bharat Mission-Urban and AMRUT are seeing big reductions, and there's no fresh money for Smart Cities projects.

Swachh Bharat Mission-Urban funding halved

If you live in or care about city life, these cuts hit home—Swachh Bharat Mission-Urban funding is halved, AMRUT gets less cash, and the PM-eBus Sewa scheme is trimmed to just ₹500 crore. Even housing support under PMAY drops by ₹500 crore.
But here's a twist: the government is upping overall capital spending and shifting focus to boost infrastructure in Tier II and III cities instead of just metros.
So while big cities tighten their belts, smaller ones might see more action ahead.