Budget 2026: Tier-II, III cities get major push
India
This year's Union Budget brings a major push for tier-II and tier-III cities, especially temple towns, with ₹20,000 crore set aside over the next five years to strengthen urban infrastructure, including basic amenities.
Finance Minister Nirmala Sitharaman called these places "engines of growth," highlighting the plan to modernize smaller cities—not just the big metros—and tap into their economic potential.
City Economic Regions introduced
The budget also introduces City Economic Regions (CERs), each getting ₹5,000 crore over five years to develop around what they do best—like tourism or manufacturing.
The focus is on strengthening urban infrastructure and basic amenities.